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2 years ago

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

Business

1 answer:

Scrat [10]2 years ago

6 0

The answer to your question is the area under the demand curve

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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 410 units.

never [62]

Given:

Annual demand = 410 units

Ordering cost = $41

Holding cost = $5 unit per year

To find:

Number of units to be ordered each time an order is placed

Solution:

On calculating the number of units,

$\Rightarrow \sqrt{(\frac{2(390)(38)}{5})} \rightarrow\sqrt{\frac{780\times38}{5}}= 76.99$

Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.

5 0

3 years ago

Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The a

hjlf

Answer:

Income statement for the company under variable costing

Sales (80,000 units x $45) $3,600,000

Less Cost of Sales

Beginning inventory $0

Cost of goods manufactured (100,000 units x $19) $1,900,000

Cost of good available for sale $1,900,000

Less Ending inventory (20,000 x $19) ($380,000) ($1,520,000)

Contribution $2,080,000

Less Period Costs

Fixed Manufacturing Overhead ($600,000)

Selling and administrative expenses - Fixed ($400,000)

Selling and administrative expenses - Variable ($180,000)

Net Income / (loss) $900,000

Explanation:

Under Variable Costing.

1.Product cost = Variable Manufacturing Costs Only

Therefore, Product cost = $4 + $11 + $ 4

= $19

2.Period Cost = Fixed Manufacturing Overheads + Non - Manufacturing Costs

5 0

2 years ago

After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking

MakcuM [25]

Answer:

257 boxes

Explanation:

The computation is given below;

Daily Demand would be

= 5000 ÷ 365

Standard Deviation = 10 boxes

Lead Time = 2 Weeks + 3 Days = 17 Days

Service Level = 0.98

Reorder Point = avg(d) × LT + z × σd × sqrt(LT)

= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5

= 317

So, the number of boxes should be ordered is

= 317 - 60

= 257 boxes

6 0

3 years ago

Firms may invest in fewer projects as a result of A. an increase in interest rates that increase economic growth. B. an increase

kupik [55]

Answer: B. an increase in interest rates that decrease economic growth.

Explanation:

If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.

Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

7 0

3 years ago

When cash outflows temporarily exceed cash inflows, banks are most likely to experience:

Musya8 [376]

C. a negative duration on it's assets.

3 0

3 years ago

Consumer surplus in a market for a product would be equal to​ ________ if the market price was zero.

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.