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4 years ago

10

Bonita Industries used high-low data from June and July to determine its variable cost of $12 per unit. Additional information f

ollows: Month Units produced Total costs June 2200 $32400 July 600 13200 If Bonita’s produces 1300 units in August, how much is its total cost expected to be?

1 answer:

ladessa [460]4 years ago

4 0

Answer:

Total cost= $25,200

Explanation:

Giving the following information:

Unitary variable cost= $12

Units produced - total cost:

June: 2,200 - $32,400

July: 600 - $13,200

August= 1,600 units

First, we need to determine the fixed costs:

Fixed costs= total cost - total variable cost

June= 32,400 - 12*2,200= $6,000

July= 13,200 - 12*600= $6,000

Now, we can calculate the total cost for 1,600 units,

Total cost= 6,000 + 12*1,600= $25,200

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Suppose that the duopolists Carl and Simon face an inverse demand function for pumpkins of P = 400 - Q, where Q = Qs + Qc is the

Usimov [2.4K]

Answer:

the Cournot-Nash equilibrium, Simon's production is 82 units

Explanation:

The Cournot-Nash Equilibrium for Simon's production is calculated as follows:

$P = 400 - Q \\ \\ Q = Q_s + Q_c$

Reaction function of Carl is as follows:

Carl maximize profit at $HR_c = HC_c$

$TR_c = P*Q_c$

$TR_c = (400 -Q_s -Q_c)Q_c$

$TR_c = 400Q_c -Q_sQ_c -Q_c^2$

⇒ $HR_c = \delta TR_c/ \delta Q_c$

$HR_c =400 -Q_s -2 Q_c$

$C_c = 30 Q_c + Q_c^2$

⇒ $HC_c = \delta C_c/ \delta Q_c$

$HC_c =30+2Q_c$

Set $HR_c = HC_c$

$400 - Q_s - 2 Q_c = 30 - 2Q_c \\ \\ 400 - Q_s -30 = 2Q_c + 2Q_c \\\\(370 Q_s) = 4 Q_c \\ \\ Q_c = (370-Q_s)/4 \\ \\ Q_c = 92.5 - 0.25 Q_s \to Reaction \ function \ of \ Carl --- equation (1)$

Reaction function of Simon

Since Simon maximize profit at $HR_s = HC_s$

$TR_s = PQ_s \\ \\ TR_s = (400-Q_c -Q_s)Q_s \\ \\ TR_s = 400 Q_s - Q_cQ_s - Q_s^2$

$HR_s = \delta TR_s/ \delta Q_s$

$HR_s =400 - Q_c -2Q_s$

$C_s = Q_s^2$

$HC_s= \delta C_s/ \delta Q_s$

$HC_s=2Q_s$

Set $HR_s = HC_s$

$400- Q_c - 2Q_s = 2Q_s \\ \\ 400 - Q_c = 2Q_s+2Q_s \\ \\ 4Q_s = 400 - Q_c \\ \\ Q_s = (4000- Q_c)/4 \\ \\ Q_s = 100 -0.25 Q_c --- Reaction \ function \ of \ Simon \ -- equation (2)$

Substituting equation (1) into equation (2)

$Q_s =100 -0.25Q_c \\ \\ Q_s = 100 - 0.25(92.5-0.25 Q_s) \\ \\ Q_s = 100 -23.125 +0.0625Q_s \\ \\ (Q_s-0.0625Q_s) = 76.375 \\ \\ 0.9375 Q_s = 76.875 \\ \\ Q_s = 76.375/0.9375 \\ \\ Q_s = 82$

Thus; the Cournot-Nash equilibrium, Simon's production is 82 units

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3 years ago

Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popul

Xelga [282]

If Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.

First step is to determine the selling price

Selling price = $1,000,000 / 100,000 units

Selling price = $10

Second step is to determine the Variable cost per unit

Variable cost per unit =$700,000 / 100,000 units

Variable cost per unit = $7

Third step is to calculate the Contribution margin per unit using this formula

Contribution margin per unit = Selling price - Variable cost

Let plug in the formula

Contribution margin per unit = $10 - $7

Contribution margin per unit = $3

Fourth step how many units will Gay and Joy need to sell to breakeven

Using this formula

Break even= Fixed cost / Contribution per unit

Break even = $ 210,000 / $3

Break even =70,000 units

Inconclusion if Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.

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3 years ago

Suppose that $2000 is loaned at a rate of 11.5% , compounded semiannually. assuming that no payments are made, find the amount o

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This problem is solved by using the compound interest formula:
A=P(1+(I/period))^(number of periods)
Where A = amount accumulated and P = amount loaned and I = Interest
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*7 (I. e paid twice over a 7 yrs span)
So we have
A = 2000 ( 1 + 0.115/2)^(14)
A = 2000 ( 1 + 0.0575)^(14)
A = 2000 (1.0575)^(14)
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3 years ago

The survival principle states that A. the only firms that survive are those that maximize profits. B. firms must undertake socia

Flauer [41]

Answer:

The survival principle states that

A. the only firms that survive are those that maximize profits.

Explanation:

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How does dr.king relate James and John to everyone else?

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