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3 years ago

A perfectly competitive firm will minimize its losses by shutting down when:

Business

1 answer:

Archy [21]3 years ago

3 0

Answer:

A perfectly competitive firm will minimize its losses by shutting down when: P < TFC at the profit-maximizing level of output. P < MC at the profit-maximizing level of output.

Explanation:

A firm will choose to implement a production shutdown when the revenue received from the sale of the goods or services produced cannot cover the variable costs of production. In this situation, a firm will lose more money when it produces goods than if it does not produce goods at all. Producing a lower output would only add to the financial losses, so a complete shutdown is required. If a firm decreased production it would still acquire variable costs not covered by revenue as well as fixed costs (costs inevitably incurred). By stopping production the firm only loses the fixed costs.

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What are payroll taxes?

Brut [27]

Answer:

This is all the information I could find.

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3 years ago

The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info

Gemiola [76]

Answer:

Direct material used= $102,000

Cost of goods manufactured= $327,000

COGS= $347,000

Explanation:

First, we need to calculate the cost of direct material used:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 28,000 + 105,000 - 31,000

Direct material used= $102,000

Now, the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 102,000 + 130,000 + 105,000 - 50,000

cost of goods manufactured= $327,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 80,000 + 327,000 - 60,000

COGS= $347,000

6 0

2 years ago

Cullumber Products plans to produce 10200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound. Wh

yKpoI14uk [10]

Answer:

Standard direct material cost= $306,000

Explanation:

Giving the following information:

Cullumber Products plans to produce 10,200 units in January. Each unit requires 6 pounds of plastic, which costs $5 per pound.

First, we need to calculate the standard pounds needed:

Standard pounds of plastic= 10,200*6= 61,200 pounds

Now, the standard cost:

Standard direct material cost= 61,200*5

Standard direct material cost= $306,000

3 0

3 years ago

The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of

kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0

3 years ago

What dynamics were used

Ksenya-84 [330]

Answer:

J.S. Bach used some dynamic terms, including forte, piano, più piano, and pianissimo (although written out as full words), and in some cases it may be that ppp was considered to mean pianissimo in this period.

8 0

3 years ago