<u>Explanation</u>:
This is an example of a linear programming problem.
THE CONSTRAINTS
Let d, c represents number of desk and chair.
Marketing restrictions
c ≥ 2d; which can be written as
2d - c ≤0
Wood restriction
4d + 3c ≤ 20
OBJECTIVE FUCTION (MAX)
= 40d + 25c
Where d ≥ 0, c ≥ 0
With this details you can then find the solutions either graphically or using any other linear programming solution methods.
Answer: This is because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.
Explanation:
The marginal rate of technical substitution (MRTS) shows the amount by which the quantity of an input can be lowered when an extra unit of another input is utilized on order for the output to remain constant.
The marginal rate of technical substitution is likely to reduce as more capital is substituted for labor because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.
Answer:
The answer is below
Explanation:
The indicators that are used to carry out capital budgeting for different ventures of a company are:
1. Profitability of the project
2. Profitability for equity investors
3. Financial sustainability of the project
These essential indicators assist the firms to evaluate a future project's lifetime cash inflows and outflows to know whether the probable returns would be yielded and satisfy an adequate target goal.
Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
