Answer: Sell before assembly, the company will be better off by $1 per unit.
Explanation:
To solve the above question, we need to calculate the incremental profit or loss first. This will be:
= After assembling sales value - Unassembled unit sales value - Coat if further processing
= $87 - $62 - $26
= -$1
Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".
Answer:
The amount of the gift is 566,371.6814
Explanation:
Average rate of return = Average net profit / average investment
Average rate of return = 5.65% (5.65/100 = 0.0565)
average net profit = 32000
average investment = unknown
to calculate the amount of the gift which is investment in this case the same formula for Average rate of return will be used i.e
Average rate of return = Average net profit / average investment
0.0565 = 32, 000/ x
cross multiply
0.0565 x = 32,000
divide both sides by 0.0565
x = 32,000/0.0565
32,000/ 0.0565 = x
x = 566,371.6814
The amount of the gift is 566,371.6814
Answer:
Explanation:
opening wip 100
Started 1000
1100
completed -800
closing wip 300
Using weighted Average process cost Table
cost opening current Total complete Wip equivalent Cost
head cost Units p.unit
material 1000 4500 5500 800 300 1100 5
CC 3960 21520 25480 800 180 980 26
30980 31
A) equivalent units of service (production ) for materials and conversion costs.
material 1100
CC 980
B)
unit costs
material 5
CC 26
31
Complete 800 31.00 24,800
Closing Wip
Material 300 5.00 1,500
Labour 180 26.00 4,680
6,180
Total Cost 30,980
Answer:
Produce more of the good that generates external cost and less of the good that creates external benefit.
Explanation:
External benefits refer to the situation where the benefit of production of goods or services goes to a third party that is not directly involved in the process of production.
Similarly, external cost refers to the situation where the cost of production of goods and services is borne by a third party which is not directly involved in the process of production.
A competitive market economy would tend to produce more of the good that generates external cost and less of the good that creates external benefit. This is because in case of external cost the private cost will be lower than social cost, so the firms will be able to produce more of the good.
Answer:
True.
Explanation:
A flat demand curve for a particular product indicates that the product is very sensitive to a change in the price level and on the other hand, a steeper demand curve indicates that any change in the price level doesn't have a effect on quantity demanded or have a little impact.
Elasticity of demand refers to the responsiveness of quantity demanded with any change in the level of price of the product.
The demand for these products is more elastic because a slightly change in the price level of a product will result in a large change in the quantity demanded for that product.
