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mariarad [96]
1 year ago
10

In the short run, a perfectly competitive firm will maximize profits (minimize losses) by producing the level of quantity at whi

ch
Business
1 answer:
Elena L [17]1 year ago
8 0

Marginal revenue is equal to marginal cost.

A perfectly competitive firm will maximize profits (minimize losses) by producing the level of quantity.

The profit maximize firms will occur at a level of quantity where marginal revenue equals to the marginal cost. It can also maximize its profit when its total cost curve intersects curve. Economic profit is the difference between the total revenues and economic costs.

Perfectly competitive firms are called the price taker firm to maintain and maximize profits. It definitely raise the prize for its profit otherwise it losses all its production in terms of sales. It is generally an atomic market condition intensively depending on ideal price.

To learn more about perfect competition here,

brainly.com/question/28081306

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Cosy corner plc case study
frosja888 [35]

Answer: https://www.igcsebusiness.co.uk/uploads/2/6/7/8/26787454/organisation_notes_final.pdf

Explanation:

4 0
2 years ago
How does a red team versus blue team exercise help an organization
Ber [7]

Answer:

By practicing simulated cyber attacks. They help in improving the security and firewall of organization thereby enhancing their resistance to cyber infiltration.

Explanation:

Organizations may often intend to evaluate and their degree of vulnerability and test their security standard, hence, they employ the use of a simulated threat pattern whereby the red team act as a threat by using several infiltration techniques usually used by actual infiltrators, the blue team on the other hand acts to repel the advances of the red team by implementing security protocols and architecture capable of neutralizing the simulated attacks of the red team. This way organizations beef up their security in other to forestall actual potential attacks against capable of invading their information and digital systems.

8 0
2 years ago
A local club is selling Christmas trees and deciding how many to stock for the month of December. If demand is normally distribu
Nastasia [14]

Answer:

0.6

Explanation:

Data provided :

Mean = 100

Standard deviation = 20

Salvage value of the tree = $ 0

Actual cost of the tree = $ 20

Selling cost of the trees = $ 50

Now, the cost of shortage = Selling cost - actual cost = $ 50 - $ 20 = $ 30

and the outrage cost = actual cost = $ 20

Now,

the service level is calculated as:

service level = \frac{\textup{cost of shortage}}{\textup{cost of outrage + cost of shortage}}

on substituting the value, we get

service level = \frac{\$\ 30}{\$\ 20\ +\ \$\ 30}

or

Service level = 0.6

6 0
3 years ago
Indiana Co. began a construction project in 2021 with a contract price of $163 million to be received when the project is comple
iragen [17]

Answer: Recognized $12.68 million gross profit on the project in 2022

Explanation:

Firstly we would need to ascertain the percentage of completion in 2022. We will do this by using the costs.

The cost incurred till date is,

= $32 million (incurred in 2021) + $59 million (incurred in 2022)

= $91 million. (1)

A further $37 million is estimated to remain in costs by project completion so the total cost would be,

= $91 million + 37 million

= $128 million is the total cost to be incurred. (2)

Dividing (1) by (2) to find out how much costs have been incurred vs how much is life we have,

= 91 / 128

= 0.7109

= 71 %

71 % of the project has been completed.

We will now find out the revenue for that very year using the percentage of the project completed.

The Total Revenue is $163 million so we will take 71% of that,

= 0.71(163)

= $115.73 million can be recognized as revenue TILL DATE. (3)

To find out the Revenue for the year then we can deduct the revenue of the previous year from the Revenue till date to find out the revenue for 2022.

But first we need to find the revenue of 2021 using the same method we used to calculate the Revenue this far

= 32 million / (32 + 86 million) * 163 million

= $44.01 million in revenue in 2021 (4)

Subtracting (4) from (3) to get the revenue for 2022 we have,

= 115.73 - 44.01

= $71.72 million is therefore the revenue for the year 2022

Calculating the gross profit for the year 2022 then we can subtract the cost in 2022 from the revenue for 2022.

= 71.72 million - 59 million

= $12.72 million

The answer we got is off by $0.04 from option C so we will pick Option C as the correct answer with the discrepancy going down to rounding off errors in the Intermediate Calculation.

8 0
3 years ago
A Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for 20 per unit. Variable costs are 8 per unit,
Inga [223]

Variable expenses 20,000 advertising be increased with profits remaining unchanged.

Calculation of this year's operating income

Sales                             20000*1.25*(20*(1-0.1))          $450,000

Variable expenses      20000*8*1.25                          $200,000

Contribution margin                                                     $250,000

Fixed expenses          180000+30000                       $210,000

Net operating income                                                 $40,000

Thus, this year’s net operating income would be $40,000.

Working note

Calculation of units sold last year.

Units sold = Total sales revenue-Sale price per unit =$400,000 - $20 =20,000.

The retail price per unit is reduced by 10%, resulting in a revised retail price of $18 per unit and 20% more units sold. Therefore, the revised sales units would be 25,000, and the total sales for the year would be $450,000, calculated by multiplying the 25,000 units sold by the selling price per unit of $18. Variable expenses increase as the number of units sold improves, so the revised variable cost is the number of units sold multiplied by $8, resulting in a variable cost of $200,000. Variable costs of $200,000 are deducted from sales of $450,000 resulting in a contribution margin of $250,000. Fixed costs increased by $30,000, resulting in revised fixed costs of $210,000 and a net operating income of $40,000. This is calculated as a contribution margin of $250,000 minus fixed costs of $210,000.

Learn more about Variable expenses at

brainly.com/question/8225307

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7 0
2 years ago
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