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ExtremeBDS [4]
3 years ago
12

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume

that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in ten cents in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
Required:
a. What is the MRP? What is the MRC? Should the firm add this delivery vehicle?
b. Now suppose that the cost of renting a vehicle doubles to S200 per day. What are the MRP and MRC? Should the firm add a delivery vehicle under these circumstances?
c. Next suppose that the cost of renting a vehicle falls back down to SIOO per day but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm's profits?
Business
1 answer:
ollegr [7]3 years ago
8 0

Answer:

a. What is the MRP? What is the MRC? Should the firm add this delivery vehicle?

marginal revenue product = marginal product of labor x marginal revenue per output unit

MRP = 1,500 packages x $0.10 per package = $150

marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)

The company should add the delivery truck because MRP is higher than MRC.

b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?

MRP = $150 (doesn't change from question a)

MRC = $200 (the cost of renting the delivery truck)

The company should not add the delivery truck because MRP is less than MRC.

c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm's profits?

MRP = 750 packages x $0.10 per package = $75

MRC = $100

The company should not add the delivery truck because MRP is less than MRC.

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a 17-year annuity pays $1,100 per month, and payments are made at the end of each month. The interest rate is 16 percent compoun
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Answer:

The present value of the annuity is $73,091.50

Explanation:

Use the following formula to calculate the present value of the annuity

Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor  for 6 years ]

Where

Annuity Payment = $1,000

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Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820

Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163

Placing values in the formula

Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]

Present value of annuity = $46,100.28 + $26,991.22

Present value of annuity = $73,091.50

4 0
2 years ago
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On
pychu [463]

Answer:

The correct answer is C

Explanation:

The amount of cash paid on July 8 is computed as:

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Amount of goods worth  = $1,600

As the amount is paid within the terms of 10 days, so the amount is eligible for the discount of 2%, it is as:

Amount to be paid in cash = Amounts of goods worth - ( Amounts of goods worth × Discount)

where

Amounts of goods worth is $1,600

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Putting the values above:

Amount to be paid in cash = $1,600 - ($1,600 × 2%)

Amount to be paid in cash = $1,600 - 32

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8 0
3 years ago
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars. The company real
trasher [3.6K]

Answer:

A) leveraging new core competencies to improve current market position.

Explanation:

As is given in the scenario, the people that the company Ancho is trying to get are <em>potential customers</em> rather than existing, hence they cannot be said to be building new core competencies <em>to protect and extend current market position</em>. That would have been the case if they were trying to keep those that were already customers to the company.

Ancho cannot also be said to be <em>redeploying existing core competencies to compete in future markets </em>because they are actually acquiring new competencies in electric car manufacturing which was not their original line of business.

There is also no case of <em>unlearning existing core competencies </em>because Anchor has deployed existing competencies in developing a hybrid car rather than just an electric one.

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8 0
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Explanation:

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4 0
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