Elle Woods is trying to figure out what combination of bags of M&Ms and bags of Cheetos she should buy with her $13 budget. The price of M&Ms is currently $3 per bag and the price of Cheetos is currently $2 per bag. Elle is currently deciding whether to purchase one more bag of M&Ms or one more bag of Cheetos. She should choose the O Cheetos every time. Cheetos, if the marginal utility of Cheetos is greater than M&Ms M&Ms, if the last bag she consumed was Cheetos, and yice yersa

Elle Woods is trying to figure out what combination of bags of M&Ms and bags of Cheetos she should buy with her $13 budget. The price of M&Ms is currently $3 per bag and the price of Cheetos is currently $2 per bag. Elle is currently deciding whether to purchase one more bag of M&Ms or one more bag of Cheetos. She should choose the O Cheetos every time. Cheetos, if the marginal utility of Cheetos is greater than M&Ms M&Ms, if the last bag she consumed was Cheetos, and yice yersa

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 5EB: Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and...

See similar textbooks

Similar questions

Consider this example: Simone has a monthly net income of $4,456 dollars. Simone follows the 50/20/30 Budgeting Rule, so she will spend half (50%) of her net monthly income on essentials: $4,456/2 = $2,228 Since there are four essential items (housing, food, transportation, utilities), Simone could just divide her essentials budget by 4, and spend the same amount on each thing, which would look like this: In the image Do you think this is a good way for Simone to divide up her essentials budget? Why or why not? Explain. How do you plan to divide the essentials budger for dnetal?
Leyia and Larry Hartley of Columbus, Ohio have decided to start a family next year, so they are looking over their budget. Leyia thinks that she can go on half-salary ($2,400 instead of $4,800 per month) in her job as a college textbook sales representative for about 18 months after the baby's birth; she will then return to full-time work. Looking at the Hartley's current monthly budget, identify categories and amounts in their budget where they realistically might cut back $2,400. (Hint: Federal and state taxes should drop about $600 a month ($7,200 annually) as their income drops.)
Jana and Cindy are planning to launch UP-PACK, a business that upcycles disposable masks into high quality packaging material. They think it can be a viable business but they need your advice; they want to make sure they aren't taking too big of a risk. Use the information below to create a 6 month cash budget. Based on their research of the industry, they plan to provide credit terms to their customers of 35% payment during the month of sale and 65% payment in the month following sale. Manufacturing supply costs are relatively low since they can get free used disposable masks from health care facilities but there are costs incurred to clean and upcycle the masks. They project their costs of goods sold (COGS) to be 24% of each month's sales. They anticipate having to pay 60% of these costs in the month of purchase and 40% in the month following purchase. Fortunately, Jana's brother has a large empty garage that they can operate in for the first year which saves them from renting…
The Ruff Jeans Company produces two different types of jeans, Simple Life, and Fancy Life. The company sales budget estimates that 350,000 of the Simple Life jeans and 200,000 of the Fancy Life jeans will be sold during the current year. The production budget requires 353,500 units of Simple Life and 196,000 Fancy Life be manufactured. The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material costs $3.25, the zipper costs $0.75 each, and the thread is $0.02 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type. Prepare a direct materials purchases budget. Round final answer to whole dollar.
A new notebook in basic color cost $50 each, and Linda combined with her design selling for $100 each, with a personalized design, the price became $125. Each new notebook will cost an extra $10 in materials, and she will need two hours to design, for personalized design she will need an extra 30 minutes. She can pay someone to advertise by $300 each month. She is projecting 200 notebooks sales of which 25% are custom design, each month, and with the marketing, she can increase 10%. How calculate the Statement Income ?
Kaja Kallas produces luxury collection of dolls. She is preparing her budget for the coming year. The budgeted selling price for each doll is $30 and the budgeted materials cost for each doll is 50% of selling price while the budgeted labour cost is 20% of selling price. Each doll is expected to incur direct expenses of $1 on top of the budgeted materials and labour costs. Equipment depreciation is budgeted to be $9,000 per annum and Ms. Kallas budgeted administration expenses are $1,200 per month. Demand in September is budgeted to be 10,000 dolls with demand rising to 10,500 dolls in October and 11,025 in November. What is Ms. Kallas budgeted gross profit for November? $86,250 $87,450 $88,200 $99,225
Ramona produces luxury collection of dolls. She is preparing her budget for the coming year. The budgeted selling price for each doll is $30 and the budgeted materials cost for each doll is 50% of selling price while the budgeted labour cost is 20% of selling price. Each doll is expected to incur direct expenses of $1 on top of the budgeted materials and labour costs. Equipment depreciation is budgeted to be $9,000 per annum and Ramona's budgeted administration expenses are $1,200 per month. Demand in September is budgeted to be 10,000 dolls with demand rising to 10,500 dolls in October and 11,025 in November. What is Ramona's budgeted gross profit for November? $86,250 $87,450 $88,200 $99,225
Lovely Wedding printing is budgeting sales of 32,000 units and already has 4,000 in beginning inventory. How many units must be produced to also meet the 6,000 units required in ending inventory?
SDIA wants to sell a T-shirt for fundraising and market it to its current 100 members in the group. The cost of each shirt is $10. Create a budgeting planning of the incoming revenue as well as expenses and that you think will occur through this fundraising event. Explain your reasonings behind the numbers you are using in the budgeting planning and tell us what your final assessment of the fundraising is.
Tracy needs some additional assistance. She has compared her budget to what actually happened this year. She sees there are differences but she is unsure why there are differences. She has included the amount she budgeted to include the standard costs and actual costs. She believes you can determine the differences and explain them so she can make any necessary changes. Her budget for materials was $37,750. She determined this by assuming she would pay $.09 ounce and would need 419,444 oz. of material. Her actual cost for materials was $.10 per ounce and she used 422,444 oz. She would like to know the total variance and how much was because she spent a different amount per ounce and how much was due to using a different amount of material. She budgeted $59,000 for labor. She budgeted based on paying the bakers $11.63 per hour and taking 5,075 hours. Her actual wages were $58,000. She actually paid $11.55 per hour and her bakers worked 5,025 hours. She would like for you to…
Tracy needs some additional assistance. She has compared her budget to what actually happened this year. She sees there are differences but she is unsure why there are differences. She has included the amount she budgeted to include the standard costs and actual costs. She believes you can determine the differences and explain them so she can make any necessary changes. Her budget for materials was $37,750. She determined this by assuming she would pay $.09 ounce and would need 419,444 oz. of material. Her actual cost for materials was $.10 per ounce and she used 422,444 oz. She would like to know the total variance and how much was because she spent a different amount per ounce and how much was due to using a different amount of material. She budgeted $59,000 for labor. She budgeted based on paying the bakers $11.63 per hour and taking 5,075 hours. Her actual wages were $58,000. She actually paid $11.55 per hour and her bakers worked 5,025 hours. She would like for you to…
Tracy needs some additional assistance. She has compared her budget to what actually happened this year. She sees there are differences but she is unsure why there are differences. She has included the amount she budgeted to include the standard costs and actual costs. She believes you can determine the differences and explain them so she can make any necessary changes. Her budget for materials was $37,750. She determined this by assuming she would pay $.09 ounce and would need 419,444 oz. of material. Her actual cost for materials was $.10 per ounce and she used 422,444 oz. She would like to know the total variance and how much was because she spent a different amount per ounce and how much was due to using a different amount of material. She budgeted $59,000 for labor. She budgeted based on paying the bakers $11.63 per hour and taking 5,075 hours. Her actual wages were $58,000. She actually paid $11.55 per hour and her bakers worked 5,025 hours. She would like for you to…