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3 years ago

A firm's primary objective is to maximize profits; however, there are always two constraints:

1 answer:

7 0

Two constraints to maximizing profit are cost of production and consumer demand.

Consumer demand is essential for revenue. Competition and budget can affect demand and put constraints to profit maximization. Cost of production can constraint profits maximization too because the higher the cost of raw material, the higher the cost of production will be, which in turn will affect the price of the product. This increase in price can also affect the demand.

The answer is then D.

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The records of the Dodge Corporation show the following results for the most recent year:

Licemer1 [7]

Answer:

unitary contribution margin= $6

Explanation:

Giving the following information:

Sales (16,000 units) $256,000

Variable expenses $160,000

<u>First, we need to calculate the unitary selling price and unitary variable cost:</u>

Selling price= 256,000 / 16,000= $16

Unitary variable cost= 160,000 / 16,000= $10

<u>Now, the unitary contribution margin:</u>

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 16 - 10

unitary contribution margin= $6

5 0

3 years ago

Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this

AlexFokin [52]

Answer:

differential analysis:

No further process Process further Differential

amount

Sales revenue $410,000 $1,213,400 $803,400

Production costs ($340,000) ($580,000) ($240,000)

Operating income $70,000 $633,400 $563,400

The company should process further and sell products B and C because its operating income will increase by $563,400.

6 0

3 years ago

Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during

ludmilkaskok [199]

Answer:

For tax purposes, assets that are converted to business use from personal, should use the lesser of the Fair Market Value (FMV) at the time of conversion or the cost of the asset.

Computer.

The FMV is less than the purchase price so the depreciable basis is:

= $800

Printer

The FMV is less than the purchase price so the depreciable basis is:

= $150

Desk

The FMV is less than the purchase price so the depreciable basis is:

= $1,000

File Cabinet

The purchase price is less than the FMV so the depreciable basis is:

= $200

6 0

3 years ago

Agnes sold 50 shares of ABC stock to her son, Steve, in year 4 for $42,000. She bought the stock eight years ago for $50,000. St

DENIUS [597]

Answer:

None, he will have to declare by the beginning of year seven

4 0

3 years ago

Which of the following budgets is not a budget that a manufacturer would include in its master budget?

Arlecino [84]

Answer:

merchandise purchases budget

Explanation:

A product sales forecast is a business plan that records the cumulative amounts of expenses or commodity production units that a retailer is supposed to buy in a reporting year.

In other terms, this is the expenditure analysts use to prepare acquisitions in inventories for the forthcoming times. This is also the guideline which determines the sum of money which the procurement department may allocate on yearly stock purchasing.

Thus, from the above we can conclude that the correct option is D.

8 0

3 years ago