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Nezavi [6.7K]
3 years ago
12

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

If Laura sells 20 wedding cakes per month, her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $200 (for the 19th, 20th, and 21st cakes) and there are no fixed costs. In order to maximize profits, Laura shoulda. 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:
Tanya [424]3 years ago
4 0

Answer:

The correct answer is option a.

Explanation:

The monthly total revenue is $5,000.

The marginal cost of producing 19th, 20th and 21st unit is $200.

Laura will earn profit if the price is able to cover marginal cost.

Total revenue is the product of price and quantity.

Price of cake when Laura produces 19 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $263.15

Price of cake when Laura produces 20 units

= \frac{TR}{Q}

= \frac{5,000}{20}

= $250

Price of cake when Laura produces 21 units

= \frac{TR}{Q}

= \frac{5,000}{19}

= $238.09

So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.

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ycow [4]

Answer:

B. I, II, and IV only

Explanation:

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In order to gain the requisite skills, expertise and knowledge for job specialization, it is very important for the employees to have undergone an extensive training and a good number of years in work experience.

The primary purpose of job specialization is to increase efficiency and productivity because the employees are able to specialize in the use of specific tools (equipments) to accomplish their tasks, as well as limit the level of error or mistakes in the production process.

In Business management, method analysis can be defined as the study of the detailed process for the performance of a job i.e how a job is done. Thus, method analysis gives a detailed report on the tasks involved in the performance of a job and how they are to be done.

Basically, methods analysis is particularly valuable when it is used on jobs that:

1. Are high in labor content.

2. Are done frequently.

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3 0
3 years ago
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
mars1129 [50]

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.

5 0
3 years ago
Christian brought his proposal to Rita before the meeting saying, "I’m sure you have some ideas on this, and we could try to get
nikklg [1K]

Answer:

Consultation

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The termination of the managers done by the company is a visible punishment which is usually done to send out a strong message that such kind of behavior will not be tolerated.

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3 years ago
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Answer:

<u>Executed</u>

Explanation:

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In the given case, Luke a minor entered a contract to buy movies. Later upon attaining majority, Luke decides to disaffirm i.e not honor it. The contract in such a scenario shall be considered as formally approved i.e ratified by both parties if it was executed.

In such a case, Luke will have to honor the contract since the disaffirmation period i.e before his attaining majority has lapsed.

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