Marla opper currently earns $50,000 a year and is offered a job in another city for $56,000. the city she would move to has 8 percent higher living expenses than her current city.(a) what amount must marla earn in the new city to maintain her current buying power? (b) if marla accepts the new job, will her buying power increase?

a) What amount must Marla earn in the new city to maintain her current buying power?

$54000

If Marla accepts the new job, will her buying power increase?

Yes increase in $2000

Explanation:

EarnOffer

5000056000

8%  

4000  

5400056000

           2000

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total