Answer:
See below
Explanation:
Sales ($30 × 1,000 drives sold)
$30,000
Less:
Variable cost ($6 × 1,000 drives sold)
($6,000)
Contribution margin
$24,000
Less:
Fixed costs
($6,000)
Operating profit
$18,000
Therefore, Bonita's operating income increases by $18,000 per month
Tradable permits are likely to result in less inefficiency, relative to a pollution tax, when ... a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable. b. the marginal costs of damages are steep and the marginal costs of pollution reduction are steep. c. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable. d. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep. e. the marginal costs of damage are elastic and the marginal costs of pollution reduction are also elastic.
Answer:
a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.
This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.
Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.
Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.
A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.
Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
Many restaurants do not take reservations. You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive, speak quietly with the maître d’, hand him some money, and are promptly seated. At some restaurants that do take reservations, there is a month wait for a Saturday evening, three weeks for a Friday evening, two weeks for a Tuesday through Thursday, and virtually no wait for Sunday or Monday evening. How do you explain these events using demand and supply?
Consider the bond (newly issued, issued on Nov 2013) for a country A: Face value $10 million Coupon rate 4.3% If this bond is purchased (in April 2014) at $9.02 million, instead of $10 million, the yield would be: Group of answer choices same as 4.3% greater than 4.3% less than 4.3%
Answer: greater than 4.3%
Explanation:
Given that
Face Value = $10 million
Current Price = $9.02 million
Coupon Rate = 4.3%
Coupon Payment per annum = $10million x 4.3% = $430,000 annually
Current yield = Annual Coupon Payment ÷ Current price of the bond
Current Yield = $430,000 ÷ 9,020,000 = 0.0476 =4.76% which is greater than 4.3%
The current assets of Sheridan Company are $292400. The current liabilities are $116960. The current ratio expressed as a proportion is
The current ratio expressed as a proportion is 2.5
Explanation:
Given :
The current assets = $292400
The current liabilities are $116960.
To find :
The current ratio
Solution :
Current Ratio =
[tex]\sf{\dfrac{Current \: Assets }{Current \: Liabilities}}[/tex]
[tex]\sf{\implies{\dfrac{292400}{116960}}}[/tex]
[tex]\implies[/tex] 2.5
Therefore, The current ratio expressed as a proportion is 2.5
4. Know the market trends of products that are in demand not
only within the local market but also in the international market.
Answer:
oligopoly
Explanation:
it is unique the market is blocked not easy to enter
For airlines that sell flights from New York City to Boston, Amtrak trains are primarily a __________ Group of answer choices Potential entrant Buyer Supplier Rival Substitute product
Answer: rival
Explanation:
For airlines that sell flights from New York City to Boston, Amtrak trains are primarily a rival.
A rival in a business environment simply refers to ones competitor. In this case, the companies are all in the same industry and competes against each other, seeks competitive advantage over one another and seeks to capture a bigger market.
What is the purpose of using predetermined overhead rates: Variation in cost assignment due to short-term variations in volume can be prevented Delays in product costing can be avoided Variation in cost assignment due to seasonality can be prevented. All of the answers are correct.
Answer:
All of the answers are correct.
Explanation:
At the beginning of the accounting period a pre-determined overhead is computed by dividing the estimated overhead production by the estimated basis of operations. The default overhead rate is then applied to manufacturing, so that the standard cost for a product may be calculated
The purpose of using pretermined overhead rates are
Delays in product costing can be avoided
Variation in cost assignment due to seasonality can be prevented
Variation in cost assignment due to short-term variations in volume can be prevented
The Use of predetermined overhead rates serves all the above purposes
Hence, all answers are correct.
You bought a bond five years ago for $804 per bond. The bond is now selling for $770. It also paid $55 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))
Answer:
the rate of return is 6.09%
Explanation:
the computation of the realized rate of return earned on this bond is shown below:
Given that
NPER is 5
PMT is $55
PV is $804
FV is $770
The formula is shown below:
=RATE(NPER,PMT,-PV,FV,TYPE)
After applying the above formula, the rate of return is 6.09%
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 45,000 for January, 55,000 for February, and 50,000 for March. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows. Commissions 8 % of sales dollars Rent $ 14,000 per month Advertising 15 % of sales dollars Office salaries $ 75,000 per month Depreciation $ 40,000 per month Interest 5 % annually on a $250,000 note payable Tax rate 30 % Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)
Answer:
Fortune, Inc.
Budgeted Income Statement for the first quarter
Sales Revenue $3,750,000
Cost of goods sold 2,100,000
Gross profit $1,650,000
Expenses
Sales commission 300,000
Rent 42,000
Advertising 562,250
Office salaries 225,000
Depreciation 120,000
Interest 3,125
Total expenses $1,252,375
Income before tax $397,625
Tax (30%) 119,288
Net income $278,337
Explanation:
a) Data and Calculations:
Selling price per unit = $25
January February March Total
Sales (in units) 45,000 55,000 50,000 150,000
Sales revenue $1,125,000 $1,375,000 $1,250,000 $3,750,000
Cost of goods sold 630,000 770,000 700,000 2,100,000
Gross profit $495,000 $605,000 $550,000 $1,650,000
Expenses:
Sales commission $90,000 $110,000 $100,000 $300,000
Rent expense 14,000 14,000 14,000 42,000
Advertising expense 168,750 206,250 187,500 562,250
Office salaries 75,000 75,000 75,000 225,000
Depreciation 40,000 40,000 40,000 120,000
Interest expense 3,125
Total expenses $1,252,375
Income before tax $397,625
Tax (30%) 119,288
Net income $278,337
Several artists in Charleston, South Carolina, show and sell their work in an art gallery downtown. The gallery is owned by an art lover who does not buy the paintings but displays the work of various artists. She collects a percentage on each piece sold. In terms of the marketing channel, the gallery is Multiple Choice an ultimate consumer. a manufacturer. a wholesaler. an agent. a clearinghouse.
Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 400,000 Selling and administrative personnel $ 85,000 Materials used Lubricant for oiling machinery $ 35,000 Cocoa, sugar, and other raw materials $ 350,000 Packaging materials $ 290,000 Randall's direct materials amounted to:
Answer:
1160.000
Explanation:
suma los gastos
Eve shops at Mrs. G's Grocery because it is located right near her place of work. Although Mrs. G's prices are higher than Walmart's, Eve is willing to pay more because she can easily pick up groceries on her way home from work. The convenience Eve received was well worth the extra money; this is an example of _______.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Value.
b) Hedonic value.
c) Utilitarian value.
d) Perceived value.
And the correct answer is the option D: Perceived value.
Explanation:
To begin with, in the field of marketing the term known as "Perceived Value" refers to the type of value that the customer receives when comparing the product of the company with those of the competitors and seeing that he or she is willing to pay more for that product because of what the customer receives in exchange of it. In this case, Eve is willing to pay extra money due to the fact that she sees the convenience of close by store that allows her to not waste time and buy fast so that is a well example of perceived value.
The convenience that Eve received was well worth the extra money, hence, it is an example of Perceived value.
In marketing, a Perceived Value refers to the type of value that the customer receives when comparing the product of the company with those of the competitors.
Hence, the convenience that Eve received was well worth the extra money, hence, it is an example of Perceived value.
Read more about Perceived value
brainly.com/question/5945636
You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.
Answer:
You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.
The following expenditures relating to plant assets were made by Adam Company during the first 2 months of 2020.
1. Paid $5,000 of accrued taxes at time plant site was acquired.
2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.
3. Paid $850 sales taxes on new delivery truck.
4. Paid $17,500 for parking lots and driveways on new plant site.
5. Paid $250 to have company name and advertising slogan painted on new delivery truck.
6. Paid $8,000 for installation of new factory machinery.
7. Paid $900 for one-year accident insurance policy on new delivery truck.
8. Paid $75 motor vehicle license fee on the new truck
Required:
a. Explain the application of the cost principle in determining the acquisition cost of plant assets.
b. List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.
Explanation:
a.)
In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.
Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.
the cash equivalent is the same as the fair market value of the assets that were given or received..
b )
the account title that expenditure should be debited
1. 5000 paid for land
2. 200 paid is for factory machine equipment
3. 850 paid for delivery truck is for equipment
4. 17500 paid for parking lot is for land improvement
5. 250 paid for companies name to be printed on truck is equipment
6. 8000 paid for installation is for equipment
7. 900 paid for insurance policy on truck is prepaid insurance
8. 75 paid as license fee is for license insurance
Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures?
Answer:
$1,586.87
Explanation:
Rate (I/Y) = 8.00%
Period (N) = 6
Amount (PV) = 1000
PMT = 80
Annual compounding type
Using the MSExcel function to solve for FV.
Future value = FV(Rate, Nper, Pmt, -Pv, 0)
Future value = FV(8%, 6, 80, 1000, 0)
Future value = $1586.87432294
Future value = $1,586.87
So, the value of the certificate when it matures will be $1,586.87.
A welding company specializes in custom steel frames and uses job costing to account for its operations. The following information is available as of May 1 for the work-in-process inventory account:
Job# Direct Materials Direct Labor Man. Overhead Total Cost
304 $3,000 $1,800 $2,520 $7,320
306 4,000 2,100 2,940 9,040
Total Cost 7,000 3,900 5,460 16,360
Welding Company pays an hourly rate of $15 for direct labor. Manufacturing overhead costsare applied to jobs based on the direct labor hours used. During the month of May, Jacob Welding spends $5,800 to purchase materials and $4,650 for manufacturing overhead. The operations in May are summarized below.
Job# Material Requisition summary Time Card Summary (Hours)
304 $1,100 40
306 900 30
307 2,800 110
308 750 25
Total 5,550 205
Jobs 304, 306, 307 are completed in May but only Jobs 304 and 307 are delivered to customers.
Required:
Calculate the predetermined overhead rate used.
Answer: $21 per direct labor hour.
Explanation:
Based on the information given in the question, the predetermined overhead rate that is used will be calculated as:
= Manufacturing overhead / Direct labor
where,
Manufacturing overhead = 5460
Direct labor = 3900/15 = 260 hours
Therefore, predetermined overhead rate:
= 5460/260
= $21 per direct labor hour.
XYZ Company operates on a remote interstate highway. It provides premium services to truckers en route to remote locations. It has numerous competitors that offer lower prices, but it meets the demands of discerning clients with its high-quality services. Therefore, XYZ Company can be characterized as a firm with a: a. narrow market appeal to a price-sensitive niche that demands quality, service, and value. b. broadly targeted scope and price points aimed for the masses. c. value proposition based on differentiation and a niche clientele that is willing to pay for added value. d. niche clientele and business model that meets the needs of truckers in general.
Answer:
c. value proposition based on differentiation and a niche clientele that is willing to pay for added value.
Explanation:
Since in the question it is mentioned that XYZ company provides the premium service also they have various number of competitors that offered the customer at less prices but at the same time this company meet the customer demand having the high quality service so here the value should be proportioned that depend upon on the differentiation also it would be pay for adding the value
Hence, the option c is correct
Kahn Performance Nutrition produces a protein shake that contains whey protein as one of its ingredients. The whey protein (materials) standards for each batch of protein shake produced are 12 pounds of whey protein at a standard cost of $3 per pound. During July, Kahn Performance Nutrition purchased and used 54,000 pounds of whey protein at a total of $170,000 to make a total of 4,300 batches of protein shake. What is the materials quantity variance for whey protein in July?
Answer:
The correct answer is "-$7200 (Unfavorable)".
Explanation:
Given:
Actual quantity,
= 54000 pounds
Standard price,
= $3 per pound
Standard quantity,
= [tex]4300\times 12[/tex]
= [tex]51600 \ pounds[/tex]
As we know,
⇒ [tex]Material \ quantity \ variance=(Standard \ quantity-Actual \ quantity)\times Standard \ price[/tex]By substituting the values, we get
⇒ [tex]=(51600-54000)\times 3[/tex]
⇒ [tex]=(-2400)\times 3[/tex]
⇒ [tex]=-7200 \ (Unfavorable)[/tex]
Nash Company sold 10,800 Super-Spreaders on December 31, 2020, at a total price of $1,015,200, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $561,600. The assurance warranties extend for a 2-year period and are estimated to cost $43,400. Nash also sold extended warranties (service-type warranties) related to 2,100 spreaders for 2 years beyond the 2-year period for $12,600. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.
Answer:
Amount reported in Income
Particulars Amount
Sales revenue $1,015,200
Warranty expenses $43,400
Amount reported on balance sheet
Particulars Amount
Unearned service revenue $12,600
Cash ($1,015,200 + $12,600) $1,016,460
Warranty liability $43,400
On February 5, McCracken Co. purchases 25 percent of Bradley Company common stock at a total cost of $90,000. Write the necessary adjusting entry.
Answer:
February 5
Dr Investment in Equity Shares $90,000
Cr Cash $90,000
Explanation:
Preparation of the necessary adjusting entries
Based on the information given we were told that the Company common stock was purchased at a total cost of $90,000 which means that the appropriate adjusting journal entry will be:
February 5
Dr Investment in Equity Shares $90,000
Cr Cash $90,000
:
Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing the bars is $2 each. What is Chin's total consumer surplus from the five bars that he purchased
Answer:
$5
Explanation:
Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 40%.
Income before Income Tax
FIFO Average Cost Difference
Before 2015 $35 million $28 million $7 million
2015 48 million 25 million 23 million
2016 30 million 29 million 1 million
Requied:
a. Prepare the journal entry to record the change in accounting principle.
b. Determine the net income to be reported in the 2016–2015 comparative income statements.
Answer:
A. Dr Inventory $30
Cr Income tax payable $12
Cr Retained earnings $18
B. 2016 Net income $18
2015 Net income $28.80
Explanation:
a. Preparation of the journal entry to record the change in accounting principle.
Dr Inventory $30
Cr Income tax payable $12
Cr Retained earnings $18
b. Calculation to Determine the net income to be reported in the 2016–2015 comparative income statements
Balance at Jan ,2015 $21.00 millions
[35 millions- (35 millions* 40%)]
NET INCOME $28.80 millions
Cash dividends ($4.20) millions
Balance At December 31,2015 $45.60 millions
NET INCOME $18 millions
Cash dividends ($4.20) millions
BALANCE AT DECEMBER 31,2016 $59.40 millions
Therefore the net income to be reported in the 2016–2015 comparative income statements will be:
2016 Net income $18
2015 Net income $28.80
The journal entry to record the change in accounting principle will be:
Debit Inventory $30 million
Credit Income tax $12 million
Credit Retained earnings $18 million
(To record error correction)
It should be noted that the income tax will be credited in the amount below:
= 40% × ($7 million + $23 million)
= 40% × $30 million.
= 0.4 × $30 million
= $12 million
The retained earnings will be:
= $30 million - $12 million
= $18 million
The net income to be reported in the 2016–2015 comparative income statements will be $18 million and $28.8 million.
The net income for 2016 will be:
= $30 million - $12 million
= $18 million
The net income for 2015 will be:
= $48 million - (40% × $48 million)
= $45 million - $19.2 million
= $25.8 million
Read related link on:
https://brainly.com/question/15087002
You just won the lottery! As your prize you will receive $1,200 a month for 100 months starting today. If you can earn 8% on your money, what is this prize worth to you today
Answer: $87,380.23
Explanation: n = 100
I/Y = 8%/12
PMT = 1,200
AVP = 1,200 × (1-(1/(1+0.08/12)^100))/(0.08/12) = 1,200 × 72.816858 = 87,380.23
The prize worth to a person today is $87,380.23 approx, if the person wins a lottery.
What is the present value?A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation.
It contrasts the purchasing power of one dollar today with that of one dollar in the future, present value\ is computed by the following formula:
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\[/tex]
whereas:
A= Annuity
i= Interest rate
n= Number of periods
m= Periodicity
Computation of present value of the price:
Apply the given values in (1),
[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\\text{Present Value} = $1,200\times {\dfrac{1-(1+\dfrac{0.08}{12})^(8.33 \times 12)}{\dfrac{0.08}{12}}[/tex]
Present Value = $87,380.23 approx.
Therefore, the prize worth to a person today is $87,380.23 approx.
Learn more about the present value, refer to:
https://brainly.com/question/17322936
#SPJ2
BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries.
a. True
b. False
Answer: False
Explanation:
The statement that "BMW and United Airlines cannot be considered in the same industry analysis because they compete in different industries" is wrong.
It should be noted that both of them are in the mobility industry. The mobility industry refers to the industry which covers the broad range of the organisations which provide products and services thar are used to support domestic and international relocations and assignments.
Assume US GAAP to answer this question. In 2017, $2 million in wages were earned and no cash wages were paid. In 2018, $8 million in wages were earned and $9 million in cash wages were paid. Cash wages were used to first pay wages earned in 2017 with the remainder used to pay wages earned in 2018. Any earned but unpaid wages will be paid during the first quarter of 2019. Using only the information provided, which of the following statements is most accurate?
a. Liabilities increased by $1.0 million in 2018
b. Liabilities increased by $3.0 million in 2018
c. Assets decreased by $5.0 million in 2018
d. Retained earnings decreased by $10.0 million in 2018
e. Retained earnings decreased by $7.0 million in 2018
Answer: a. Liabilities increased by $1.0 million in 2018
Explanation:
In 2018, $9 million was used to settle the wage debt of 2017 and the remainder was used to settle the wages in 2018.
The money remaining in cash after the wage settlement was:
= 9,000,000 - 2,000,000 - 8,000,000
= -$1,000,000
This means that $1,000,000 of wages was not settled in 2018 which means that this would have to go to the Wages Payable account to signify that the company owes wages.
This account is a liability account so liabilities in 2018 would increase by $1,000,000.
The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed:
Month Demand, Units
January 15
February 18
March 22
April 23
May 27
June 26
Use a three-month moving average to make a forecast for July.
Answer:
25.3
Explanation:
A moving average is often used to pinpoint the increase or decrease of a certain statistic over a certain period of time since the increase in the demand for this specific drug has been increasing constantly for the past 6 months we will take the past 3 months, April, May, and June, so we will have to add up 23+27+26=76, now we just have to divide by the number of months= 76/3=25.3, so the moving average for the increase in the forecast for July will be 25.3
A major U.S. manufacturer of children's toys believes its main competitive advantage lies in its continuing the creation of innovative toys and games. The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs. The LAST function this firm should consider outsourcing is: Group of answer choices research and development. operations. supply-chain management. distribution.
Answer:
research and development
Explanation:
Since in the given situation, it is mentioned that the company faced the increased in the competition and also it considered an outsourcing in order to offshore the firm so that the cost can be minimized so here the last function the firm should considered outsourcing is the research and development as there is the outsourcing so there would be the research and development also it deals with innovation & introduction of new products & services
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is $2800 unfavorable. $800 favorable. $800 unfavorable. $500 unfavorable.
Answer:
$800 favorable
Explanation:
Calculation to determine what the total direct labor variance is
Using this formula
Total Direct Labor Variance=(Standard Direct Labor Cost - Actual Direct Labor Cost
Let plug in the formula
Total Direct Labor Variance=[(2800 × 2) × $15]- $83200
Total Direct Labor Variance=$84000 - $83200
Total Direct Labor Variance = $800 favorable
Therefore the total direct labor variance is$800 favorable
Supposed you have had 10 apples. You gave 4 apples to your friend for Christmas. What portion of the initial amount did you give away? (use similar formatting to the dollar amount, strictly decimals, no other signs or characters)
Answer:
The portion of the initial amount that was given away is:
= 0.40
Explanation:
a) Data and Calculations:
Number of apples available = 10
Number of those apples given to a friend for Christmas = 4
The portion given away = 4/10 = 0.4
This represents 40% of the whole.
b) The portion given away to the friend for Christmas is a proportion of the whole. In this case, it represents just 40% of the 10 apples. This means that only 60% or 0.60 of the original apples are still available or on hand because 40% had been given away.
Janine is considering what auto costs she is going to have after buying a new Honda Civic. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership
Answer:
No. Janine has not factored in all of the costs usually associated with car ownership.
Explanation:
Other costs associated with the ownership of a car like a new Honda Civic that Janine is considering buying are: maintenance, license and registration, loan finance charges, and depreciation costs. These costs can drastically reduce Janine's monthly purchasing power and ability to save. The costs of owning a new Honda Civic should be compared to the cost of not owning one now vis-a-vis Janine income.