1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Westkost [7]
3 years ago
14

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $300 per day. Assume

that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in $0.30 in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
Required:
a) What are the MRP and MRC?
b) Now suppose that the cost of renting a vehicle doubles to $600 per day. What are the MRP and MRC?
Should the firm add a delivery vehicle under these circumstances? Yes/No
Business
1 answer:
trapecia [35]3 years ago
6 0

Answer:

a) MRP = $450

MRC = $300

b)  MRP = $450

MRC = $600

No

Explanation:

a) Marginal revenue product (MRP) is the change in revenue created due to an increase in resources.

MRP = Revenue change /  additional input

The revenue change as a result of adding one vehicle= 1500 packages/day * $0.3 = $450. The additional input is 1 vehicle

MRP = Revenue change /  additional input = $450 / 1 = $450

Marginal revenue cost (MRC) is the change in cost as a result of additional resource.

MRC = Change in resource cost / additional input

Since adding a vehicle is rented at $300/day, the Change in resource cost is $300.

MRC = $300 / 1 = $300

b) MRP = Revenue change /  additional input = $450 / 1 = $450

MRC = Change in resource cost / additional input =  $600 / 1 = $600

The firm should not add a delivery vehicle because the MRC exceeds the MRP, therefore the firm would be at a loss

You might be interested in
Based on what you see in the employee complaint log, what type of culture has HydroHealth been exhibiting? Servant? Equity? Clan
Butoxors [25]

Based on the record of employee complaints, it is correct to say that the HydroHealth company is exhibiting the market culture.

<h3 /><h3>What is market culture?</h3>

It corresponds to an organizational culture based on competitiveness in the internal and external environment, that is, competitiveness is also encouraged among employees, being a more aggressive model of culture.

Therefore, the market culture can generate some disadvantages, such as increased employee turnover and task overload, increasing conflicts and negatively impacting the perception of work.

Find out more about organizational culture here:

brainly.com/question/26965722

3 0
2 years ago
In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplif
Verdich [7]

Answer:

In 2009, the U.S. government imposed a 35% tariff on tires imported from China. (The numbers and equations used here are simplified based on the results of a much more complicated model.) Demand is given by QD = 105 − 1.5P where QD is in millions of tires per year. Supply is QS = 1.5873P − 15.87.

Explanation:

4 0
3 years ago
You are the owner of a retail shop. One of your managers regularly calls employees and coworkers names like deadbeat and crook i
stepan [7]

Answer:

Letter A is correct. <u>Abusive language.</u>

Explanation:

The communication process is essential for any business, it is through communication that ideas and objectives, needs and integration of the internal and external environment are expressed.

Business communication should promote integration and relationship with the company's stakeholders, so it is necessary that the communication process is based on ethics and legal conduct, so that there is no type of communication noise and information is passed on in a timely manner. contrary to what was proposed.

It is necessary for managers to adopt a posture consistent with the organizational culture, in the case exemplified above there is an abusive language, as there is the use of offensive words to refer to employees and customers, therefore this conduct must be promptly reviewed, as an effective manager is one that ensures that its public is respected and protected from harm, so that the organizational climate is as positive as possible, which ensures greater productivity and motivation of employees to make the organization more profitable.

3 0
3 years ago
1) Markets and competition In a perfectly competitive market, all producers sell___________ goods or services. (perfectly identi
marishachu [46]

Answer:

The answers are,

1) Perfectly Identical

2) many

3)takers

4)false

Explanation:

Lettuce is a commodity that can't be differentiated much based on the product. It can be however, differentiated from branding, packaging, etc.

But since the Lettuce is a broad category, we can assume that it is a competitive market.

Perfectly competitive markets do not really exist in the real world and are more of a hypothetical scenario. However, knowing the concept allows businesses and governments to make sound economic decisions regarding production and consumption.

3 0
3 years ago
How many products are priced above average?<br><br> 12<br> 18<br> 22<br> 10
geniusboy [140]
22 I hope this helpssssss
7 0
3 years ago
Read 2 more answers
Other questions:
  • Unlike advertising, public relations Multiple Choice supports promotional efforts by generating free media attention and goodwil
    12·1 answer
  • Cash 5,345 Accounts Receivable 2,662 Prepaid Expenses 725 Equipment 14,421 Accumulated Depreciation 6,970 Accounts Payable 1,643
    13·1 answer
  • The AD&amp;D provision in a life insurance policy would pay additional benefits if the insured
    11·1 answer
  • The equation represents Jordan's overtime pay structure. Based on this equation, what is Jordan's regular hourly pay?
    10·2 answers
  • For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,
    12·1 answer
  • Assume you were an employee at an organization like IKEA, and Fortune surveyed you for it's 100 Best Companies to Work For list.
    15·1 answer
  • The demand for organic produce is growing. Green Acres Farms grows only organic vegetables. In a SWOT​ analysis, the rising dema
    6·1 answer
  • What was the target market for traditional advertisers
    15·1 answer
  • Mirrlees Corp. has 11,000,000 bonds convertible into 39 shares per $1,000 bond. Mirrlees has 570,000 outstanding shares. Mirrlee
    13·1 answer
  • On November 4, 2018, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!