Answer and Explanation:
The computation is shown below:
a) Total Cost
= Fixed Cost + Variable Cost
= 2000 + 250 × 1000 + 420 × 1000 + 620 × 1000 + 810 × 2000
= $29,12,000
b) Total Revenue is
= Price × Quantity
= 650 × 5000
= $3,250,000
c) Profit is
= Total Revenue- Total Cost
= $3,250,000 - $2,912,000
= $338,000
Answer:
Predetermined overhead rate= $21 per hour
Applied overhead= $1,890,000
Explanation:
Overhead absorption rate (OAR)= Budgeted Overhead/Budgeted computer hours
= $2,100,000/100,000 computer hours= $21 per hour
Predetermined overhead rate= $21 per hour
Applied overhead= OAR × Actual hours
Overhead applied = $21 per hour × 90,000 = $1,890,000
Applied overhead= $1,890,000
The essential rule that makers utilize to figure out what blend of work and capital conveys yield at the least expense is cost minimization. Cost minimization is the primary guiding principle that producers use to determine which combination of labor and capital produces the most output at the lowest cost.
a) Because the total cost less the variable cost, the fixed cost is $300.
At a result of nothing, the main expenses are fixed expenses.
B) The change in total cost for each additional output unit is equal to marginal cost. Additionally, it is equivalent to the variation in variable cost for each additional output unit. As the quantity changes, the fixed cost does not change, so total cost equals the sum of variable cost and fixed cost. As a result, the increase in variable cost is proportional to the increase in total cost as quantity increases.
<h3>What is the formula for reducing costs?</h3>
The marginal product of capital is equal to the marginal product of labor divided by the rental price of capital in the cost minimization formula.
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Answer:
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
Explanation:
Inflation = [ ( CPI of 2003 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 184 - 100 ) ÷ 100 ] × 100
= 84%
Therefore,
The wage will increase by this inflation to be nominal
= 8.28 × (1.84)
= $15.23
Similarly
Inflation = [ ( CPI of 2004 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 188.9 - 100 ) ÷ 100 ] × 100
= 88.9%
Therefore,
The wage will increase by this inflation to be nominal
= 8.24 × (1.889)
= $15.565
Hence,
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
Yes. This is a team-based design since managers and employees are being grouped into teams in order to solve certain problems. They help hand in hand in coming up to a solution. Hope this answers the question. Have a nice day.
