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sleet_krkn [62]
3 years ago
8

b. Suppose the government sets a target price of $5 per bushel for any quantity supplied up to 1,000 bushels. How many bushels o

f corn are purchased by consumers and at what price? By the government? How much does the program cost the government? How much revenue do corn farmers receive?
Business
1 answer:
Rasek [7]3 years ago
4 0

Answer:

With a price floor of $5, the quantity of corn supplied is 1,200 bushels. The quantity demanded is only 800 bushels: there is a surplus of 400 bushels. The government therefore has to buy up the surplus of 400 bushels, at a price of $5 each: the program costs the government 400 × $5 = $2,000. Corn farmers sell 1,200 bushels (800 to consumers and 400 to the government) and therefore make 1,200 × $5 = $6,000 in revenue.a. With a price floor of $5, the quantity of corn supplied is 1,200 bushels. The quantity demanded is only 800 bushels: there is a surplus of 400 bushels. The government therefore has to buy up the surplus of 400 bushels, at a price of $5 each: the program costs the government 400 × $5 = $2,000. Corn farmers sell 1,200 bushels (800 to consumers and 400 to the government) and therefore make 1,200 × $5 = $6,000 in revenue.

Explanation:

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Softie, Inc. produces facial tissues. The company's contribution margin ratio is 77%. Fixed expenses are $240,400. To achieve a
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To achieve a target profit of $930,000, Softies' sales must be $1,520,000.

<h3>What is target profit?</h3>
  • Target profit is the amount of profit that a company's managers anticipate achieving by the conclusion of a specific accounting period.
  • Typically, the target profit is established from the budgeting process and is compared to the actual result in the income statement.
  • If they chose to earn a 20% margin on each sale, they will make a $50 profit on each chair sold.
  • As a result, if the corporation wishes to make $50 per chair and sell the chair for $200, the chair must be manufactured for $150 or less.

To find the target profit of Softie, Inc.:

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Therefore, to achieve a target profit of $930,000, Softies' sales must be $1,520,000.

Know more about target profit here:

brainly.com/question/17061733

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