Answer:
2) the gold rules principle
Explanation:
The gold rules principle is important because companies maximize their profits when marginal revenue = marginal costs. That is why the revenue-cost relationship is so important, because higher revenue will only generate higher profit if costs are under control.
Answer:
I understand this completely true fact
Explanation:
majic
Answer:
The objective function is to minimize cost thru use of linear programming
Explanation:
A craftsman named William Barnes builds two kinds of birdhouses, one for wrens and a second for bluebirds. Each wren birdhouse takes 4 hours of labor and 4 units of lumber. Each bluebird house requires 2 hours of labor and 12 units of lumber. The craftsman has available 72 hours of labor and 120 units of lumber. Wren houses yield a profit of $ 10 each and bluebird houses yield a profit of $ 15 each. The aim of the objective function for William should be to ▼ Minimize Maximize the objective value.
The objective function is to minimize cost thru use of linear programming
Answer:
c. 23,500
Explanation:
The formula for determining target sales volume is shown below:
target sales volume=fixed costs+ target net income before tax/contribution margin per unit
fixed costs=$140,000
target net income before tax=$36,000/(1-25%)=$48000
contribution margin per unit=selling price-variable cost=$25-$17=$8
target sales volume=($140,000+$48000
)/$8
target sales volume=$188,000/$8
target sales volume=23500
