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Mrac [35]
3 years ago
13

Bobby decides to sell lemonade on a hot summer day. If Bobby sells 20 glasses of lemonade for $0.20 per cup, and his average tot

al cost is $0.17, what are Bobby's economic profits for the day? $0.20 $0.00 $0.60 $0.80
Business
1 answer:
MAXImum [283]3 years ago
4 0

Answer:

c. $0.6

Explanation:

The economic profit is the difference between total income and total cost. The total cost is the multiplication of the average cost by the number of sold glasses.

Total income = 20 * 0,2 = 4

Average cost = 0,17

Total cost = 0,17 * 20 = 3,4

Economic profit = Total income - total cost = 4 - 3,4 = 0,6

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When a pharmaceutical company introduces a new drug, its research and development costs are ______, and the cost of the chemical
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Answer:

Start-up cost; variable cost

Explanation:

Start-up cost is the cost incurred in developing a new product. It is a one time cost that is incurred only at the time of creating something new. Start-up cost includes borrowing cost, research and development cost and expenses incurred on technology.

Variable costs change with the change in units of output produced. Cost of chemicals depend on the amount of drugs produced. So, research and development cost is start-up cost and cost of chemical is variable cost.

3 0
3 years ago
Socks unlimited produces sport socks. the company has fixed expenses of $ 85 comma 000 and variable expenses of $ 1.20 per packa
aivan3 [116]

Answer:

Contribution margin per unit = Sales price per unit – Variable cost per unit

$2 - $1.20=$0.80

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Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit $85,000 + $22,000/0.80 = 133,750 packages

Contribution margin per package = $2 - $1.00 = $1.00

Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit

$100,000 + $22,000/$1= 122,000 packages

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HACTEHA [7]
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3 years ago
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C Services are provided by both private and public sectors.

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The government is involved in the provision of public goods such as roads, hospitals, and schools. It provides regulatory services to the private sector to ensure fairness in the economy.

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