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jekas [21]
4 years ago
5

Suppose the current market price of corn is $3.75 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3

gallons of ethanol. If the cost of conversion is $1.60 per bushel, at what market price of ethanol does conversion become attractive?
Business
1 answer:
Aleks04 [339]4 years ago
5 0

Answer:

At 1.783 or more, the conversion yield better gain than sales the corn

Explanation:

The ethanol conversion become attractive if the cost for doing the conversion are lower than the sale revenue for the product.

<u>total cost: raw materials + conversion cost</u>

corn price:           $  3.75

conversion cost:  $  1.60

Total cost:            $  5.35

<u>output: gallon of ethanol per bushel</u>

3 gallons of ethanol per bushel

total cost / output = 5.35/3 = 1.783 cost per gallon

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On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed
garik1379 [7]

Answer:

None of the above options are correct

Depletion amount in 2019 = $52.480

Explanation:

The Cost of Quarry (Depletion Base ) = $164000

Estimated Salable Rock (Units Extracted) = 20000 tons

Depletion Rate = Depletion Base /Units Extracted

Depletion Rate for 2018 = 164000/ 20000 = $8.2/ton

Units Extracted in 2018 = 4000 tons

Depletion amount in 2018 = Depletion Rate for 2018 *Units Extracted in 2018

Depletion amount in 2018 = $(8.2*4000) = $32800

In 2019

Depletion Base in 2019 = The Cost of Quarry - Depletion amount in 2018 = 164000-32800 = $131200

Estimated Salable Rock in 2019 (Units Extracted) = 20000 tons

Depletion Rate for 2019 = 131200/ 20000 = $6.56/ton

Units Extracted in 2019 = 8000 tons

Depletion amount in 2019 = $(6.56*8000) = $52480

4 0
3 years ago
The beginning inventory is 52,800 units. All of the units that were manufactured during the period and 52,800 units of the begin
Kazeer [188]

Answer:

a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations.

b. $776,160

Explanation:

a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations

b. Given that

Beginning inventory = 52,800

Fixed manufacturing costs = $14.70 per unit

Total Beginning inventory = Beginning inventory × Fixed manufacturing costs

= 52,800 × $14.70 per unit

= $776,160

5 0
3 years ago
Search marketing involves placing _____ on the organic results page of search engines.
Rus_ich [418]

Answer: Advertisements

Explanation:

Search engine marketing is a form of internet marketing, where website owners increase their website's views from search engine results, this can be achieved through paid or unpaid adverts.

The paid adverts may include the use paid Google adverts while the unpaid adverts would include the use of search engine optimization.

8 0
4 years ago
Jaycee Jeans sold 40 pairs of jeans at a price of $40. When it lowered its price to $20, the quantity sold increased to 60 pairs
grigory [225]

Answer:

The answer is: A) 0.6

Explanation:

First we will calculate the midpoint for units:

  • change in units = 40 - 60 = -20
  • average units = (40 + 60) / 2 = 50
  • midpoint for units = 20 / 50 = 0.4 (we only use positive numbers)

Now we will calculate the midpoint for price:

  • change in price = 40 - 20 = 20
  • average price = (40 + 20) / 2 = 30
  • midpoint for units = 20 / 30 = 0.67

Finally we divide 0.4 / 0.67 = 0.6

4 0
3 years ago
Which economic tool would most likely be used as part of a contractionary
Inessa05 [86]

Answer:

O B. Raising interest on reserves

Explanation:

The Federal Reserve expects banks to keep a percentage of customer deposits as reserves. The reserves cater to both the normal and unexpected withdrawals. The Federal Reserve (Fed) also uses reserve requirements as a monetary policy tool.

Interest on reserves is one of the monetary policy tools that the Fed uses regularly. The Fed pays interest on any excess reserves held by the banks. Increasing the interest paid on reserves encourages banks to hold more money.  Decreases the interest prompts the banks to lend out more. Contractionary monetary policies are measures aimed at decreasing the money supply in the economy. Increasing interest on reserves increases money held in the banking sectors, thereby slowing down money circulation.

5 0
4 years ago
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