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timofeeve [1]
3 years ago
11

Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.

Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $300. In order to maximize profits, Laura should
a. make more than 20 wedding cakes per month.
b. make fewer than 20 wedding cakes per month.
c. continue to make 20 wedding cakes per month.
d. We do not have enough information to answer the question.
Business
1 answer:
mars1129 [50]3 years ago
5 0

Answer:

The correct answer is the letter a. "Make more than 20 wedding cakes a month."

Explanation:

To maximize profit the marginal price of each cake must equal the marginal cost of each cake. The marginal cost is 300 and the marginal price is 5000/20 = 250. The marginal price of each cake (250) is less than the marginal cost of each cake (300), so Laura needs to make more than 20 cakes to increase her revenue and maximize her profit.

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SoldByAir provides drone services to the real estate industry, both residential and commercial. The purchasing manager is gettin
ladessa [460]

Answer:

The indifference point is 22,381 hours a year.

Explanation:

Giving the following information:

SecureAll:

Fixed costs= $900,000

In house:

Fixed costs= (100,000*4) + 30,000= $430,000

Variable costs= $21 an hour

First, we need to structure the cost formula for each option:

SecureAll= 900,000

In-house= 430,000 + 21*x

X= number of hours

Now, to calculate the indifference point, we need to equal both formulas and isolate X:

900,000= 430,000 + 21x

470,000/21= x

22,381= x

The indifference point is 22,381 hours a year.

8 0
3 years ago
The useful life of a new plant asset _____. is the same as the asset's total productive life. might not exceed one year. might b
gulaghasi [49]

Answer:

The correct answer is letter "C": might be estimated based on the experience of others or on engineering studies and judgment if the company does not have past experience with a similar asset.

Explanation:

A company's assets represent the<em> cash, patents, accounts receivable, equipment, plants, </em>and <em>land</em>, among others, useful for the firm to generate profit. When it comes to plant assets, they are considered fixed assets for cost accounting purposes and are nothing but the <em>land, buildings and machinery</em> useful for manufacturing.

<em>Calculating the useful life of a plant asset can be complicated and may require engineering studies. However, if the expertise of an employee is good enough to determine it the firm must take advantage of this strength but if there is nobody with this capability the institution should look for someone who does moreover when it does not have experience computing the useful life of such assets.</em>

8 0
3 years ago
A partner that invests money in a business, but does not take an active role in management or assume unlimited liability is best
Arturiano [62]

Answer: Limited partner

Explanation:

The limited partner is part of the owners of a partnership business that doesn't play an active role in supervising daily business operations and whose liability in the business is limited only to the amount of money invested into the business. The limited partner leaves the partnership daily runnings for the active partner.

8 0
3 years ago
What is 101x9 please answer
Nataly [62]
101
x  9
-------
 909 

Thats how ill explain how to solve that problem.

 
3 0
3 years ago
Read 2 more answers
What is the role of the government in fiscal policy
Elena L [17]

It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.

5 0
4 years ago
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