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kotegsom [21]
1 year ago
7

Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit then what is the optimal

price to maximize profit?
Business
1 answer:
skelet666 [1.2K]1 year ago
4 0

Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit $1.75 is the optimal price to maximize profit.

The income maximization system depends on income general sales overall fee. consequently, a firm maximizes earnings while MR = MC, that is the primary order, and the second order depends on the first order. This idea differs from wealth maximization in phrases of length for income earnings and the company's goals.

Calculation,

The demand equation q=20,000 p^(-1.4)

The production constant is $0.50

maximum profit= $1.75

The choicest charge is that charge point at which the total earnings of the seller are maximized. while the rate is just too low the vendor is shifting a big quantity of devices but income is the best possible combination of income. Examples of income maximizations like this encompass: discovering less expensive raw materials than those presently used. discover a provider that gives better charges for inventory purchases. locate product resources with decreased delivery prices. lessen labor expenses.

Learn more about The optimal price here:-brainly.com/question/28332226

#SPJ4

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The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most rece
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Answer:

Vera Incorporated

Change in annual operating income from discontinued business:

Annual Operating Income would reduce by $78,000.

Explanation:

a) Calculation of the Net Income Lost:

Loss of Contribution        ($99,000)

Avoidable fixed cost          $21,000

Reduction of Income       ($78,000)

b) The line of purses contributes $80,000 towards the company's fixed cost.  Therefore, discontinuing this line of business would lead to the loss of this steam of income.  The amount of reduced operating income will be $78,000 ($80,000 - 2,000).

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3 years ago
What is the uses of trading, profit and lost account​
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The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...
4 0
3 years ago
What is the nash equilibrium for this​ game?
NeTakaya
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4 0
3 years ago
Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On Janu
AVprozaik [17]

Answer:

Onslow Co.

Journal Entries:

1. Jan. 2: Debit Equipment $178,000

Credit Cash $178,000

To record the cash payment for equipment purchase.

2. Jan. 3: Debit Equipment $4,000

Credit Cash $4,000

To record the cash payment for readying the equipment for use.

3. Dec. 31: Debit Depreciation Expense $28,000

Credit Accumulated Depreciation $28,000

To record depreciation expense for the first year.

4. Dec. 31, Year 5: Debit Equipment Disposal$178,000

Credit Equipment $178,000

To transfer the equipment account to the Equipment Disposal account.

Debit Accumulated Depreciation $140,000

Credit Equipment Disposal $140,000

To transfer accumulated depreciation to the Equipment Disposal account.

a) Debit Cash $15,000

Credit Equipment Disposal $15,000

To record the cash proceeds from sale of equipment.

Debit Loss on Sale of Equipment $23,000

Credit Equipment Disposal $23,000

To record the loss on Equipment Disposal.

b) Debit Cash $50,000

Credit Equipment Disposal $50,000

To record the cash proceeds from sale of equipment.

Debit Sale of Equipment $12,000

Credit Gain on Sale of Equipment $12,000

To record the gain on Equipment Disposal.

c) Debit Cash $30,000

Credit Equipment Disposal $30,000

To record the cash proceeds from insurance company.

Debit Loss on Disposal $8,000

Credit Equipment Disposal $8,000

To record the loss on Equipment Disposal.

Explanation:

a) Data and Calculations:

January 2: Cost of used machine = $178,000

January 3: Readying costs = $4,000 ($2,840 + $1,160)

Estimated useful life = 6 years

Estimated salvage value = $14,000

Depreciable amount = $168,000 ($182,000 - $14,000)

Depreciation method = straight-line method

Annual depreciation expense = $28,000 ($168,000/6)

Accumulated depreciation at December 31, Year 5 = $140,000 ($28,000*5)

Disposal date = December 31, Year 5

Journal Entries Analysis:

1. Jan. 2: Equipment $178,000 Cash $178,000

2. Jan. 3: Equipment $4,000 Cash $4,000

3. Dec. 31: Depreciation Expense $28,000 Accumulated Depreciation $28,000

4. Dec. 31, Year 5: Equipment Disposal $178,000 Equipment $178,000

Accumulated Depreciation $140,000 Equipment Disposal $140,000

a) Cash $15,000 Equipment Disposal $15,000

Loss on Sale of Equipment $23,000 Equipment Disposal $23,000

b) Cash $50,000 Equipment Disposal $50,000

Equipment Disposal $12,000 Gain on Sale of Equipment $12,000

c) Cash $30,000 Equipment Disposal $30,000

Loss on Disposal $8,000 Equipment Disposal $8,000

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3 years ago
Which of the following best describes a trial balance?
Lubov Fominskaja [6]

Answer:

A

Explanation:

In the accounting process extracting a trial balance is the final step.

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