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Sedaia [141]
3 years ago
8

A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution

margin of $8 and takes two machine hours to make and Product B has a unit contribution margin of $18.0 and takes three machine hours to make. If there are 5000 machine hours available to manufacture a product, income will be:
Business
1 answer:
Mashutka [201]3 years ago
6 0

Answer:

Income = $30,000

Explanation

<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product </em><u><em>with he highest contribution per unit of the scare resource</em></u>

Product       Cont/unit          machine hr /unit    cont/hr    Ranking

A                    $8                    2 hrs                      $4/hr             2nd  

B                    $18                  3 hrs                       $6/hr            1st

<em>Hence the company should allocate the resource to the product B</em>

<em>Hence the total contribution</em>

= 5000 hrs × $6 per hr.

= $30,000

Income = $30,000

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Brrunno [24]

Answer:

The correct answer would be option C, By producing more than it consumes.

Explanation:

A developing country can generate internal funds by producing more than it consumes.

Internal funds are the funds that are generated internally, either at the individual level or at the country level. When a country generates funds on its own, the funds are called as the internal funds.

So internal funds can be generated by producing more than the consumption requirements. In this way the economic activities will increase, the money supply would be better and the country would be able to generate funds it need.

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3 years ago
Assume that a firm uses labor and capital to produce a product. The firm hires labor at a wage rate of $4 per unit and rents cap
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Explanation:

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The Marginal Product of Labour is 20 units resulting from $4 dollars so that means that for every dollar spent on Labour we get,

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= 5 units of output.

However, The Marginal Product of renting Capital is 30 units resulting from $5 dollars so that means that for every dollar spent on Capital we get,

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3 years ago
Brad, Scott, and Jake each contribute property to form BSJ Corporation. Brad contributes a building with a fair market value of
Talja [164]

Answer:

<em>The answer is $700,000</em>

Explanation:

<em>From the example given, we find the tax basis will each take in their respective BSJ stock</em>

<em>Contributions done partner wise         (All values in $)</em>

<em>Partner  Contribution Tax Share in Stock  % of Tax   Base Tax base in stock</em>

<em>Name                               Base</em>

<em>Brad         450000        100000         45%          17%       120689.7</em>

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<em>Jake 150000          130000         10%          22%     156896.6</em>

<em>                700000           580000                      100%     700000</em>

<em>Therefore, The Total Assets contributed will be equivalent to stock of BSJ issued = $ 700,000</em>

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3 years ago
You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in t
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