GK Chesterton Co. issued $5,000,000 of 7.5%, 5-year convertible bonds on December 1, 2019 for $5,025,480 plus accrued interest of $62,500 (credited to interest payable). The bonds were dated April 1, 2019 with interest payable on April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Each $1,000 bond is convertible into 14 shares of $15 par value common stock. On October 1, 2020, bonds with a face value of $2,500,000 were converted into common stock. stock. Instructions: (a) Prepare the entry to record the interest payment on April 1, 2020. Assume that interest payable was credited when the bonds were issued (round to nearest dollar). Hint: You will need to amortize the premium over 52 months since the bonds were issued after the date of April 1, 2019. (b) Prepare the entry to record the entries on October 1, 2020.

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same

Andy purchases only two goods, apples (a) and kumquats (k). he has an income of $125 and can buy apples at $5 per pound and kumquats at $5 per pound. his utility function is u(a, k) = 6a + 2k. what is his marginal utility for apples and his marginal utility for kumquats? andy's marginal utility for apples (mu subscript a) is mu subscript aequals 6 and his marginal utility for kumquats (mu subscript k) is