Charlie consumes apples and bananas. his utility function is u(xa, xb) = xax2b. the price of apples is $1 the price of bananas is $2, and his income is $30 per week. if the price of bananas falls to $1 group of answer choices the income used to calculate the substitution effect is higher than his original income, since the change made charlie better off. the substitution effect of the fall in banana prices reduces his apple consumption, but the income effect increases his apple consumption by the same amount. more than one of the above is true. the substitution effect of the fall in the price of bananas reduces his banana consumption but the income effect increases his banana consumption by enough so that his banana consumption rises. charlie demands fewer apples and more bananas.

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?

What two things do you consider when evaluating the time value of money