Answer:
Potential total surplus to increase.
Explanation:
As we know that:
Producer Surplus = Market value - Minimum price to sell
This means that for Juan:
Market value at which he can sell the ticket to Mara was $200 and the minimum price that he will accept will be $120
By putting values, we have:
Liam's surplus = $200 - $120 = $70
Now
Consumer Surplus = Consumer willing to Pay - Consumer Paid
For Alexander, the amount he was willing to pay was $250 and what he actually paid was $200 if the regulation hasn't intervened.
Alexander's surplus = $250 - $200 = $50
This means that the regulation prevents the increase in the potential total surplus and this has increased the dead weight loss of $120 ($70 + $50).
Carfax offers a report on used cars for $39.99. It details the ownership type and history, vehicle mileage, accident reports, and other information. Carfax is an example of how markets try to:
Answer:
lessen the lemons problem by reducing asymmetric information.
Explanation:
Since in the question it is mentioned that the Carfax offered a report on a cars that are used for $39.99. The information involves type of ownership, history, vehicle mileage, accident reports, and other type of information
Based on the above information, the markets lowered the lemon problem i.e. asymmetric information that represents the failure of information
Joan, who has a PhD in economics, has been employed as an agent by Gibraltar Securities for the past 15 years. Missing academic life, she resigns from the broker-dealer and accepts a position as an economics professor at a state university. Which, if any party, is required to notify the state securities Administrator of this change
Answer:
both the agent in question as well as the former broker/dealer are required to notify the Administrator promptly.
Explanation:
In the specific scenario that is being described both the agent in question as well as the former broker/dealer are required to notify the Administrator promptly. This is mainly due to the fact that the license that an agent possesses expires as soon as they cease to be employed by the broker/dealer and/or issuer for whom they were previously licensed. Therefore this information needs to be presented immediately to the securities administrator and her license needs to be revoked.
By using bootstrap marketing strategies (unconventional, low-cost, creative techniques) small companies can get as much "bang" for their marketing bucks as their larger rivals.
Answer:
The given statement relates to bootstrap marketing strategies
Explanation:
In simple words, Bootstrap marketing relates to an advertising strategy usually used by entrepreneurs to create a business from the bottom up with little but private money and, luckily, money from the very first sale.
This method is usually used by start ups for capturing initial market share and with the expertise of an angel investor they can really go for high goals.
On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specifies a delivery date of March 1. The equipment was delivered on March 31. The contract requires full payment of $75,000 30 days after delivery. The revenue for this contract should be recorded on
Answer:
31 March 2021
Explanation:
The contract should be recorded on 31 March 2021 because according to the US Generally Accepted Accounting Principles, revenue should be recognize in the book only when service has been rendered to the customer, the selling price of product is fixed and confirmation of service arrangement and amount to be collected.
With regards to the above scenario, since the equipment was not delivered until 31 March, then 31 of March will be recognized.
Correct Inc. is a publicly traded firm with 100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost of debt at 6.5% at a marginal tax rate of 40%. The company has $100 million of cash on its balance sheet. What is the enterprise value of Correct Inc.
Answer:
The enterprise value of Correct Inc is $4,650 M
Explanation:
In this question, we are interested in calculating the enterprise value of Correct Inc
To do this, we use the mathematical formula below;
Enterprise Value = market value capital and debts - cash and investments
Enterprise Value = 100m shares * $37.50 per share + $1000m debts - $100m
= $3750 m + $1000 m - $100 m
= $4650 m
Harley-Davidson disciples share a common, deeply held attraction to the brand. Harley appeals include: freedom, independence, power, and authenticity. Harley-Davidson doesn't just sell motorcycles. It sells self-expression, lifestyles, aspirations, and dreams. This illustrates core customer values
Answer: Brand personality
Explanation:
Brand personality is what the customers can easily relate to about a particular brand. To develop and maintain a strong brand, having a brand personality is vital.
From the question, we are informed that Harley appeals include freedom, independence, power, and authenticity and that Harley-Davidson doesn't just sell motorcycles, it sells self-expression, lifestyles, aspirations, and dreams. This illustrates brand personality.
True, its illustrated Core Customer Value.
Core customer values refers to the perception of what a product or service of a company is worth to a customer against the effort of buying such product.
These values are what attracts customers to a product or a firm.Question sometime asked by customer that what do i gain from this product despite being costlier? The Core values the customer got from the product or firm keeps the attraction.In conclusion, the values are displayed effectively by product or firms in other to persuade new customer as well as to attract existing customers.
Learn more about Core customer values here
brainly.com/question/15073502
At Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as _______.
Answer:
Theory X.
Explanation:
In this scenario, Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as Theory X.
Douglas McGregor developed the theory x and y in the 1950s while working at the MIT Sloan school of management.
Theory X suggests that employees working in a particular organization dislike work, possess minimal ambition, and are generally not willing to take up responsibility.
Hence, with the Theory X it is very important and essential that these employees be supervised and rewarded externally with prizes and punishment should be used when they err.
Kate's Diner offers one breakfast item, a breakfast special. The market price for this meal is $5. At her profit-maximizing level of output, Kate's average variable cost is $4 per meal. Her average total cost is $6 per meal. Since the market is perfectly competitive, Kate should ________.
Answer:
keep producing in the short run but exit the industry or go out of business in the long run
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.
A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run
Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land
Answer:
The answer is $282,200
Explanation:
The cost of an asset includes the purchase price (cost of acquisition) and the cost neccessary to bring it usage.
For example, for cost of acquiring a machinery, the purchase price minus any trade discount plus cost of transportation, plus any tax paid on acquisition plus cost of installation etc.
But for the acquisition of land, all the cost except the cost of fence of the land will be considered.
So we have:
Purchase price. $256,000
Broker's fee. $15,300
Survey fee. $2,400
Legal fee $8,500
Cost of the land. $282,200
Suppose that initially the price is $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant
Answer:
$20
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
demand falls and so does supply. therefore price would remain unchanged in the long run equilibrium.
Keith and his team,employees of an online retailing company,are being trained on cyber surveillance and user security.As part of their training,they are working to identify a solution to the problem of cyber-phishing and data breaches.Which of the following forms of group-building methods is being employed by Keith's team?A) Cross-learningB) Action learningC) Adventure learningD) Virtual realityE) Behavior modeling
Answer: Action learning
Explanation:
From the question, we are informed that Keith and his team, employees of an online retailing company, are being trained on cyber surveillance and user security and as part of their training, they are working to identify a solution to the problem of cyber-phishing and data breaches.
The method used is action learning. This means that the group will get an actual problem, solve it, plan and the results will be shown to the team and the organization.
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements
Answer:
straight commission
Explanation:
Straight commission refers to the commission in which only a sales percentage could be given in terms of commission no extra payment, no salary is given. The percentage could be based on the performance of the salesperson i.e how much sales he sold so according to that the percentage is given
Therefore the given situation represents the straight commission method
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (7,300 units) $ 350,400 Variable expenses 204,400 Contribution margin 146,000 Fixed expenses 103,500 Net operating income $ 42,500 If the company sells 7,200 units, its net operating income should be closest to:
Answer:
Net operating income= 40,500
Explanation:
Giving the following information:
Contribution margin 146,000
Fixed expenses 103,500
Sales= 7,200
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= 146,000/7,300= $20
Now, for 7,200:
Total contribution margin= 7,200*20= 144,000
Fixed costs= (103,500)
Net operating income= 40,500
On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2016
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.
2017
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.
1.1 Prepare journal entries to record above transactions and adjustments for 2016.
2. How much warranty expense is reported for November 2016 and for December 2016?
Warranty Expense for November 2016 ?????
Warranty expense for December 2016 ?????
3. How much warranty expense is reported for January 2017?
4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016?
5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017?
Answer:
Nov 11
Dr Cash 7,875
Cr To Sale 7,875
Nov. 11
Dr Cost of Goods Sold 2,100
Cr To Inventory 2,100
Nov. 30
Dr Warranty Expenses 630
Cr To Warranty Liability 630
Dec. 9
Dr Warranty Liability 300
Cr To Inventory 300
Dec. 16
Dr Cash 16,500
Cr To Sales 16,500
Dec. 16
Dr Cost of Goods Sold 4,400
Cr To Inventory 4,400
Dec. 29
Dr Warranty Liability 600
Cr To Inventory 600
Dec. 31
Dr Warranty Expenses 1,320
Cr To Warranty Liability 1,320
1.b Journal Entries for 2017
Jan 5
Dr Cash 11,250
Cr To Sales 11,250
Jan 5
Dr Cost of goods sold 3,000
Cr To Inventory 3,000
Jan 17
Dr Warranty Liability 1,000
Cr To Inventory 1,000
Jan 31
Dr Warranty Expenses 900
Cr To Warranty Liability 900
2)a. Warranty Expenses= $630
2b. Warranty Expenses= $1,320
3). Warranty Expenses= $900
4). Estimated Warranty Liability Account $1,050
5). Estimated Warranty liability account $900
Explanation:
Preparation of the Journal entries for Lobo Co
Journal Entries for 2016 for Lobo Co
Nov 11
Dr Cash 7,875
Cr To Sale 7,875
Nov. 11
Dr Cost of Goods Sold 2,100
Cr To Inventory (20*$105) 2,100
Nov. 30
Dr Warranty Expenses 630
($7,875*8%)
Cr To Warranty Liability 630
Dec. 9
Dr Warranty Liability 300
(15*$20)
Cr To Inventory 300
Dec. 16
Dr Cash 16,500
Cr To Sales 16,500
Dec. 16
Dr Cost of Goods Sold 4,400
Cr To Inventory 4,400
(220 * $20)
Dec. 29
Dr Warranty Liability 600
(30*$20)
Cr To Inventory 600
Dec. 31
Dr Warranty Expenses 1,320
($16,500*8%)
Cr To Warranty Liability 1,320
1.b Journal Entries for 2017
Jan 5
Dr Cash 11,250
Cr To Sales 11,250
Jan 5
Dr Cost of goods sold 3,000
(150*$15)
Cr To Inventory 3,000
Jan 17
Dr Warranty Liability 1,000
(50*$20)
Cr To Inventory 1,000
Jan 31
Dr Warranty Expenses 900
(11,250*8%)
Cr To Warranty Liability 900
2)a. Warranty Expenses for Nov. 2016
Warranty Expenses= $7,875*8%
Warranty Expenses= $630
2b. Warranty Expenses for Dec. 2016
Warranty Expenses= $16500*8%
Warranty Expenses= $1,320
3). Warranty Expenses for Jan. 2017
Warranty Expenses= $11,250*8%
Warranty Expenses= $900
4). Estimated Warranty Liability Account as on Dec. 31, 2016
Estimated Warranty Liability Account= $630 + $1,320 - $300 - $600
Estimated Warranty Liability Account= $1950- $900
Estimated Warranty Liability Account= $1,050
5). Estimated Warranty liability account as on Jan. 31, 2017
Estimated Warranty liability account = $1,050 + $900 - $1,050
Estimated Warranty liability account= $900
The discount rate assigned to an individual project should be based on: Group of answer choices the firm's weighted average cost of capital. the actual sources of funding used for the project. the current risk level of the overall firm. the actual sources of funding used for the project. the estimated riskiness associated with the individual project.
Answer:
none of the choices are correct
Explanation:
When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project
There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner
Therefore none of the choices are correct
The board of directors of DDC omitted dividends in 2016 on their $100 par 6% noncumulative preferred stock. In 2017, a $2 preferred dividend was paid. For DDC, 2018 has been a good year, and the board wishes to pay a common dividend. How much must be paid per share on the preferred for 2018 in order to pay a common dividend
Answer:
$6
Explanation:
Calculation for the amount to be paid per share on the preferred for 2018 in order to pay a common dividend.
Using this formula
Common dividend=Omitted dividend *noncumulative preferred stock
Where,
Omitted dividend =$100
Noncumulative preferred stock=6%
Let plug in the formula
Common dividend =$100*6%
Common dividend =$6
Therefore the amount to be paid per share on the preferred for 2018 in order to pay a common dividend will be $6 per share.
When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from Group of answer choices
Answer:
external source
Explanation:
In this specific scenario, Brandon was searching for information from an external source. In this case, Brandon's friend is the external source of information, because he is someone from the outside that is capable of providing Brandon with the information that he needs and why Brandon reached out for that information. Internal Information would be information that comes from Brandon's own memories.
Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Unknown to Caitlin or Buck, in one of the closets is the master recording of an unreleased album. With respect to this recording, Buck can
Answer:
not keep it because there was no voluntary consent to its sale.
Explanation:
In this situation, Buck can not keep the unreleased album because there was no voluntary consent to its sale. When Danton died, all of his belongings became Caitlin's property. Since she did not know about the album or even that it was in the house when selling the house to Buck, she never agreed to transfer ownership of the album to Buck. Therefore, the album still belongs to Caitlin and Buck must return it.
Jennifer is a junior in college. Her current cumulative grade point average (GPA) is 3.5 out of a 4.0 scale. Jennifer is hoping that by the time she graduates, she can raise her cumulative GPA to a 3.7. Which of the following statements is correct?A. Either b or c could be correct. B. If Jennifer earns a 3.7 GPA in her senior year, she will be able to raise her cumulative GPA to a 3.7. C. If Jennifer earns between a 3.5 and a 3.7 GPA in her senior year, she will be able to raise her cumulative GPA to a 3.7. D. Jennifer must earn above a 3.7 GPA in her senior year in order to raise her cumulative GPA to a 3.7.
Answer: d. Jennifer must earn above a 3.7 GPA in her senior year in order to raise her cumulative GPA to a 3.7.
Explanation:
Calculating and aiming for improved gpa towards the end of a session has to go alongside improvement in performance from the individual. Jennifer's target here is a minimum of a 3.7cgpa while Curren at 3.5cgpa, for Jennifer to achieve this she has to improve her effort, scoring anything below 3.7 would not take her towards 3 .7,a 3.5 or 3.6 will further reduce the possibility.
"Jobs Now is an employment website. Like its competitors, it offers free listings in every category, which is free for job seekers but not for companies. This feature of Jobs Now is an example of"
Answer:
A revenue model
Explanation:
A revenue model is a business organizational framework and strategy for balancing a business expenditure and income generation per revenue stream outlined by the business by identification of the veritable revenue sources, the structure of the pricing for the access to the value derived from the revenue source, as well as how customers are to pay for the value of the services of the revenue source
In essence, a revenue model maps value to buyers of a given valuable product.
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
Answer:
The total amount of cash expected to be received from customers in September is the sum of 25% of the September sales plus 75% of the August sales.
Explanation:
Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a(n) ______ change.
Answer:
Radically innovative.
Explanation:
In this scenario, Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a radically innovative change.
A radically innovative change is a strategic business approach aimed at developing the business drastically.
"An individual who is 25 years from retirement has $500,000 to invest today. He is risk tolerant and is looking to withdraw $80,000 per year once he retires. Which asset allocation is BEST for this client?"
The available options are:
A. 25% Stocks / 25% Bonds / 25% REITs / 25% Money Markets
B. 50% Stocks / 40% Bonds/ 10% Cash
C. 100% Bonds
D. 100% Stocks
Answer:
B. 50% Stocks / 40% Bonds/ 10% Cash
Explanation:
Since the age of the customer is not given in the question, however, given he or she is 25 years from retirement, it is logical to assume that the customer is about 40-50 years old in age. According to the rule of thumb that "100% minus the customer's age" should be allocated to stocks for growth, hence, a stock allocation of 40-50% is about right.
Hence, in this case, the right answer is Option B: 50% Stocks / 40% Bonds/ 10% Cash
Assume the following: (1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States; (2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.If the price of the 6-month forward pound were to ____, U.S. investors would no longer earn an extra return by shifting funds to the United Kingdom.a. Rise to $1.52b. Rise to $1.53c. Fall to $1.48d. Fall to $1.47
Answer:
d. Fall to $1.47
Explanation:
currently you will need $1,500 to purchase £1,000 and invest in British bonds. After 65 months you will have £1,040, which you should be able to convert into $1,544.40. If you invested in US bonds, you would have $1,530, so this arbitrage will yield $14.40.
But if instead the British pound fell to $1.47, then your profit would only be $28.80, less than if you invested in US bonds. You again would have £1,040 in 6 months, but that would only be equal to $1,528.80.
A homeowner decides to rent a spare bedroom in her single-family house to a tenant for $500 per month. When a 24-year-old man asks to see the room, the homeowner refuses, telling him that she will only rent to women over the age of 50. The prospective tenant threatens to sue for a violation of the Fair Housing Act on the basis of age. Should the homeowner be concerned
Answer:
Should not be concerned
Explanation:
In the scenario being described, it can be said that the homeowner should not be concerned. That is because even though she did discriminate against the individual, Single-family homes rented without the use of a real estate agent or advertising are exempt from the federal Fair Housing Act. This holds true as long as the owner of the property does not own more than three homes at any given time. Therefore since there was no real estate agent, the man can't sue.
Describe the role of securities markets and of investment bankers: what role do investment bankers playing securities markets
Answer
Explanation:
investment bankers specialize in the provision of new securities and they
provide helps to those that want their security liquified.
However, investment bankers are known with their role of provision of money at capital market to their customers such as companies or government set up through issuing of money or equity for security market.
Bank laying down norms for bank is : SBI, RIB, RBI or RBG
Answer:
The answer is "RBI"
Explanation:
The RBI was formed in 1935, to comply only with RBI Act, it is also known as the central bank of India, throughout order to generate financial security in India, it implements fiscal policy, as well as regulates its exchange rates and higher compensation of the whole nation.
Its primary goal will also consist of monitoring India's separate bank operations in the money markets. Its primary focus also is on the publisher of new bills. It has been developed to be the bank of a bank manager as well as the state bank.
Hayduke Corporation reported the following results from the sale of 5,000 units in May: sales $300,000, variable costs $180,000, fixed costs $90,000, and net income $30,000. Assume that Hayduke increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income?
Answer:
4,444.44 units
Explanation:
For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-
Selling price per unit = Sales ÷ Number of units sold
= $300,000 ÷ 5,000
= $60
Variable cost per unit = Total variable cost ÷ Number of units sold
= $180,000 ÷ 5,000
= $36
Increase in selling price = $60 × 5%
= $3
New selling price per unit = $60 + $3
= $63
New contribution margin per unit = New selling price per unit - Variable cost per unit
= $63 - $36
= $27
Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit
= ($90,000 + $30,000) ÷ $27
= $120,000 ÷ $27
= 4,444.44 units
A donor gave $75,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:
Answer:
B) Record the $75,000 cash and credit a liability
Explanation:
Possible options:
A) Record the $75,000 cash and credit temporarily restricted revenue. B) Record the $75,000 cash and credit a liability C) Do either (a) or (b), depending upon the policy of the not-for-profit D) Not record the transaction.Non-for-profit charities must record all cash donations, but since the funds were donated for an specific purpose, their use is restricted. Therefore, the charity must record a liability (which has a normal credit balance).
Payment for subscriptions is billed one month in advance. First month's payments are pro-rated for the amount due up until the 15th of the month plus the next month's bill amount. All monthly payments are due by the 15th of each month. Payments received after the 20th of the month will result in a late fee of $20.00. The late fee may be waived one time per year.
Answer: c. The subscription began about 10 days before the 15th of the month.
Explanation:
With the first month's payments being pro-rated for the amount due up until the 15th of the month plus the next month's bill amount payments, the likely possibility is that the customer started their first subscription 10 days before the 15th of the first month.
This would then mean that they were charged the daily rate for each of those 10 days which amounted to $15. The daily rate can be calculated by dividing $45 by 30 days because $45 is the rate for the month according to the question.
= 45/30
= $1.5 a day.
