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dybincka [34]
3 years ago
13

A firm's optimal output is 1,000 units per month, with a fixed cost of $300 per month and variable cost of $200 per month. The m

arket price of this good is $0.40. The firm decides to shut down. In such a situation, this firm should ________.
Business
1 answer:
irina [24]3 years ago
6 0

Answer:

Increase the production to decrease the fixed cost per unit

Explanation:

The reason is that if the production increases then the fixed cost will start decrease because the level of production and fixed cost per unit are inversely proportional to each other. Now if the production increases to 1250 ($500/0.4) units then the firm is at no profit and no loss position (Breakeven position). So all the firm has to do is increase its production above 1250 and generate the demand of increased production at the same price.

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The graph shows unemployment rates in the United States in recent years.
S_A_V [24]

The correct answer is C. The United States suffered an economic downturn starting in 2009.

Explanation:

The graph shows the percentage of unemployment in the U.S. from 2006 to 2012. In this, you can see the unemployment rate was between 4% and 5% during 2006, 2007 and 2008; however, after this year the rate suddenly increased. Indeed in 2009, the rate was 6% and in 2010 it was 10%, which is evidently higher than in previous years. This situation suggests there was an economic recession or downturn that began in 2009 and continued during the following years, this explains why the number of unemployed people increased as an economical recession usually leads to fewer jobs. Thus, the most accurate statement is "The United States suffered an economic downturn starting in 2009".

6 0
3 years ago
Benton Engineering Services Company incurred the following during 2016 Direct labor $94,000 Overhead 126,000 Selling expenses 11
Galina-37 [17]

Answer:

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

Explanation:

<em>Prime cost is the addition of direct material cost , direct labor cost and direct expenses.</em>

<em>Conversion cost is the cost of converting raw materials into finished product. It s the sum of direct labour cost and production overheads.</em>

For Bento Engineering,

<em>Prime cost = direct labour cost  (since no figure is given for direct material and direct expenses.)</em>

Prime cost = $94,000

Conversion cost = Direct labour cost + overheads

<em>Conversion cost</em> = $94,000 + 126,000

                          =  $135,400.

Prime cost = $94,000

<em>Conversion cost</em> =  $135,400.

8 0
2 years ago
Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $150,
PolarNik [594]

Answer:

$28,300

Explanation:

Missing word: "<em>Calculate free cash flow."</em>

<em />

Free cash flow = Operating cash flow - Capital expenditures - Dividends

Free cash flow = $361,200 - $206,000 - $126,900

Free cash flow = $28,300

So, the Free cash flow of Hinck Corporation is $28,300.

6 0
2 years ago
Based on your knowledge of pricing concepts, why does Warby Parker stress that the price tag for frames starts at $95
gladu [14]

Answer:

He is used to paying less for other things. He expected the glasses to be cheaper.

5 0
2 years ago
The Alpha Division of the Carlson Company manufactures product X at a variable cost of $40 per unit. Alpha Division's fixed cost
zheka24 [161]

Answer:

$70 per unit.

Explanation:

Based on the information given we were been told that the market price of X costs the amount of $70 per unit which simply means that market price exists, based on this the transfer price of X in a situation were each division is been treated as a profit making center will be the market price of $70 per unit.

8 0
3 years ago
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