The additional benefit of producing one more roast beef sandwich at a local deli is $2. the additional cost of producing one more roast beef sandwich is $3. to improve allocative efficiency:

producers should produce at least one more roast beef sandwich because mb > mc.
producers should produce at least one more roast beef sandwich because mc > mb.
producers should not produce one more roast beef sandwich because mb > mc.
producers should not produce one more roast beef sandwich because mc > mb.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)