Answer:
The company should not further process the product as it results in income reduction by $1000.
Explanation:
According to the given data, company current profit for 1000 units is :
= (cost of sell) - (cost of manufacturing)
= $7000 - $5000
= $2000 (current profit)
While when company further process the product, the profit will be :
= (cost of sell) - (cost of manufacture)
= $10000 - ( $5000 + $4000)
= $10000 - $9000
= $1000
It clearly shows that further processing the product may result in reduction of profit by $1000.
Hence the company should not further process the product.
Answer:
retention ratio
Explanation:
Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.
When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.
Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.
Answer:
the number of units that should Sandoval include in its year-end inventory is 29,600 units
Explanation:
The computation of the number of units that should Sandoval include in its year-end inventory is given below:
= Opening units + units purchased + units at consignee location - units damaged
= 26,000 + 2,600 + 4,600 - 3,600
= 29,600
Hence, the number of units that should Sandoval include in its year-end inventory is 29,600 units
This is the answer but the same is not provided in the given options
Answer:
A) No, in the presence of a negative externality, since the monopolist produces less than the competitive quantity, it may end up producing the socially efficient quantity. However, in the case of a positive externality, since a competitive market produces too little, a monopolist will only exacerbate the problem.
Explanation:
Monopolists produce less than the competitive quantity (marginal revenue = marginal cost) but charge a higher price for their products. In case a negative externality is produced, then the competitive quantity should decrease and the monopolist might end up producing the socially efficient quantity.
Given the same scenario where the monopolist produces less than competitive quantity, but a positive externality is produced, then the socially efficient quantity should increase, but the monopolist will not increase their output.
The right answer for the question that is being asked and shown above is that: "c. the slope of the AS curve." When a change in interest rates impacts the international value of the dollar limiting the effectiveness of fiscal policy, it is due to <span>c. the slope of the AS curve.</span>
