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3 years ago

If a firm is producing an output level for which marginal revenue is less than marginal cost;

Business

1 answer:

sdas [7]3 years ago

3 0

Answer:

The correct answer is option b.

Explanation:

A firm is able to maximize it's profit by producing output at the level where the marginal revenue earned from the last unit of output is equal to marginal cost incurred on it.

If a firm is operating at the point where the marginal revenue is lower than the marginal cost then the firm can maximize profit by reducing its output till the point where the marginal revenue and marginal cost are equal.

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Department F had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $13,400. Of

Rufina [12.5K]

Answer:

a.$3.35

Explanation:

The first step in determining conversion cost per unit is to calculate the Total Equivalent units of production for Conversion Costs.

Conversion Costs

Units Completed and transferred (15,000 × 100%) = 15,000

Units in Ending Work In Process (3,000 × 75%) = 2,250

Total Equivalent units of production = 17,250

The next step is to determine the total conversion cost of production incurred during the period.

Conversion Costs

Conversion Costs in Beginning Work In Process $4,800

Conversion Costs added during the period ($33,000 + $20,000) $53,000

Total Conversion Costs $57,800

Finally calculate the conversion cost per unit

Conversion cost per unit = Total Conversion Costs / Total Equivalent units of production

= $57,800 / 17,250

= $3.35 (to the nearest cent)

4 0

3 years ago

Christina is evaluating Maximum Brands as an investment opportunity. She is very concerned about future financial performance by

Artemon [7]

Answer:

There is CEO duality

Explanation:

What is a CEO duality

CEO duality refers to the situation when the CEO also holds the position of the chairman of the board.

The board of directors is basically designed to keep an eye on managers such as the CEO on the behalf of the shareholders. They design compensation contracts and hire and fire CEOs. The benefit of having a dual CEO in the firm is because he or she could work closely with the board to create value.

Christina in this sense is tryinb to bring more value to the firm and in ghe capacity of just the CEO her hands are tied. She probably wants more authority or power to do much more.

6 0

3 years ago

Barrington Mills Manufactures denim cloth from two primary raw materials, cotton and dye. Work-in-process includes lapped cotton

8_murik_8 [283]

Answer:

weeks of supply 2,7122857

Explanation:

17,500,000 / 50 weeks = 350,000 COGS per week

current finished inventory:

250 x $ 65 = 16,250

190 x $ 80 = 15,200

310 x $ 105 = 32,550

Total 64,000

cost added:

70,000 materials x $ 2.75

125,000 materials x $ 5.00

total 817500

WIP:

2,000 rolls x $ 10.50

5,000 spools x $ 6.75

500 rolls x $ 26.10

total $ 67,800

Total inventory: 817,500 + 67,800 + 64,000 = 949300

week of supply:

inventory of 949300

and 350,000 goods are consumer per week

week: 2,7122857

3 0

3 years ago

You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces

erica [24]

Answer:

The annual rate of return of the invesment will be -14,97%

Explanation:

The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%

8 0

3 years ago

Cave Hardware's forecasted sales for April; May; June; and July are $ 170,000; $ 230,000; $ 190,000; and $ 260,000; respectively

PIT_PIT [208]

Answer:

accounts payable 128,500

Explanation:

To answer we must determine how much is the amount of purchases needed for the month of June.

It is not interesting the debt that is generated in previous months since they are paid in full, so in May the purchases of the month of May will already be canceled, so they will not impact the suppliers account.

June

Purchases= 190,000 x 0.85 + (inventory cost of sales of the month) + 80,000 (inventory at the end of the month) + 260,000 x 10% (inventory at the end of the month) = 276,500,

But according to the company's policy at the beginning of the month the inventory was equal to

80,000 + 190,000x10% (June sales) = 99,000

So the purchases necessary to meet the costs of sale and comply with the policy of the owner at closing is the same

267.500(inventory needed) - 99.000( initial existence) = 168.500

the record will be

Inventory 168,500

Cash 43,810

accounts paylable 124,690

6 0

3 years ago