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jekas [21]
3 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]3 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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Low-income countries have cultures that value ________
victus00 [196]
Low-income countries have cultures that value economic survival. These type of countries do not have a lot of high paying jobs and the job market is very unstable, so citizens find it imperative to have enough income to survive. These types of countries do not have much in the way of entertainment culture or pop culture, due to people having so little extra money to spend on both.
8 0
3 years ago
Suppose the market wage for cashiers increases from $7 per hour to $9 per hour.As a result, Pat, who is a cashier, now works fiv
Anton [14]

Answer:

Income

Explanation:

Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week.Chris's behavior illustrates the <u>Income</u> effect of a wage increase.

As the income increases, few individual prefer to work fewer hours as now they are able to maintain target by working fewer than at previous wage rate. These people prefer leisure over higher income and want to settle down with limited income. These people  may have a backward bending individual labour supply curve – they may choose to work fewer hours when the wage rate rises.

8 0
3 years ago
Sammy and Monica, both age 67, incur and pay medical expenses in excess of insurance reimbursements during the year as follows:
Mademuasel [1]

Answer:

The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

Explanation:

For the purpose of regular income tax, the deduction pertaining to medical expenses are available up to the extent it exceeds 10% of AGI.

Deduction available = excess expenses incurred - 7.5% of AGI

                                 = ($16,000  + 4,000  + 2,500 +5,000) - 7.5%*130000

                                  = 27500 - 9.750

                                  = $17,750

Therefore, The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

5 0
3 years ago
Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many uni
netineya [11]

Answer:

b. 65,000 units

Explanation:

The number of units of products y must sell to yield an annual profit of $90,000 is computed as;

Break even point in sales units = (Fixed cost + Targeted profit) / Contribution margin

Given that ;

Fixed cost = $300,000

Targeted profit = $90,000

Contribution margin = $15 - $9 = $6

Therefore,

Break even point in sales units = ($300,000 + $90,000) / $6

= 65,000 units

The number of units of products y must sell to yield an annual profit of $90,000 is 65,000 units.

3 0
2 years ago
5. What is the difference between your assets and your liabilities known as?
miskamm [114]

Answer:

The difference between your assets and your liabilities is known as either your profit or loss.

6 0
2 years ago
Read 2 more answers
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