1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry_Shevchenko [17]
3 years ago
8

Omega Custom Cabinets produces and sells custom bathroom vanities. The firm has determined that if it hires 10 workers, it can p

roduce 20 vanities per week. If it hires 11 workers, it can produce 22 vanities per week. It sells each vanity for $800, and it pays each of its workers $1,000 per week. Which of the following is correct?A. For the 11th worker, the marginal profit is $600. B. For the 11th worker, the marginal revenue product is $2,000. C. The firm is maximizing its profit. D. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
Business
1 answer:
adell [148]3 years ago
6 0

Answer:the correct answer is A. For the 11th worker, the marginal profit is $600.

Explanation:

10 men             20  vanities per week

11   men            22 vanities per week

1 man more       2 vanities more

If the company uses 1 man more produces 2 vanities more, so the company spends $1000 on the extra man and makes 2*$800= $1,600 (for two extra vanities). For the 11th worker, the marginal profit is = $1600-$1000= $600

You might be interested in
Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In
Ymorist [56]

Answer:

D) Shift of the demand curve for Z to the left

Since both the equilibrium quantity and price decreased.

Explanation:

A rightward shift of the demand curve should increase both the equilibrium price and quantity.

A rightward shift of the supply curve should increase the equilibrium quantity and decrease the equilibrium price.

A leftward shift of the supply curve should increase the equilibrium price and decrease the equilibrium quantity.

4 0
3 years ago
Eeeee I need help siks djnakwidbdh
Vladimir79 [104]

Answer: skits?

Explanation:

5 0
3 years ago
Bristo Corporation has sales of 1,000 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expe
Misha Larkins [42]

Answer:

3.60

Explanation:

Given that,

Sales units = 1,000

Sales price per unit = $60

Variable expenses = 40% of the selling price

Total Fixed cost = $26,000

Contribution margin per unit:

= Selling price - Variable cost

= $60 - ($60 × 40%)

= $60 - $24

= $36

Total contribution:

= Contribution margin per unit × Sales units

= $36 × 1,000

= $36,000

Profit = Total contribution - Fixed cost

         = $36,000 - $26,000

         = $10,000

Degree of operating leverage:

= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)

= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)

= 36,000 ÷ 10,000

= 3.60  

8 0
2 years ago
After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its ext
marta [7]

Answer:

Target sales revenue = $7,830,000

Explanation:

given data

target price = $270

annual target sales volume = 29,000

target operating income = 40%

to find out

Target sales revenue

solution

we will get here Target sales revenue that is express as

Target sales revenue =  target price × annual target sales volume   .................1

put here value we get

Target sales revenue = $270 × 29000

Target sales revenue = $7,830,000

6 0
3 years ago
When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti
olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0
2 years ago
Other questions:
  • Among United States' major trade partners in 2014, a trade ______ occurred only with _____. The United States also had the large
    7·1 answer
  • What are economic resources
    5·1 answer
  • ________________________ diagnose, replace, maintain, identify faults with, and repair electrical wiring and computer-based equi
    10·1 answer
  • You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri
    9·1 answer
  • When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of:
    6·2 answers
  • Wood Co. owns 2,000 shares of Arlo, Inc.’s 20,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock and 1,000
    10·1 answer
  • How can communication help to make a business or a company thrive?​
    7·1 answer
  • Could somebody do my quiz for me on e2020?<br> don't fail make good grades
    15·1 answer
  • What is an organisation chart​
    9·1 answer
  • Target market segments are defined by common factors such as ________. psychographics geography demographics all of the above.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!