You have an income of $100 to spend on two commodities. The price of commodity 2 is constant at $1.
(1) The price of commodity 1 is $2 for the rst 20 units, but $1 for each additional unit exceeding 20. Draw the budget set.
(2) The price of commodity 1 is $2 if 20 or fewer units are purchased, but $1 for all units (including the rst 20) if more than 20 units are purchased. Draw the budget set. Now suppose income is still $100, but commodity 1 is priced according to the bulk discount of part (2) above.
(3) The price of commodity 2 is $2 for the rst 30 units, but $1 for each additional unit exceeding 30. Draw the budget set.
(4) The price of commodity 2 is $2 if 30 or fewer units are purchased, but $1 for all units (including the rst 30) if more than 30 units are purchased. Draw the budget set.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.