Answer: $40,000 incremental profit
Explanation:
Total Revenue if they sell the chickens as is to a slaughter house is,
= 60,000 * 1
= $60,000
If they decide to slaughter the chickens themselves then we have the following revenue
= 2.75 (selling price) * 60,000 chickens - 65,000 ( cost to turn into meat)
= $100,000
That's the profit if they process further. To get the Incremental Profit we subtract the profit if they just sell to the Slaughter house.
= 100,000 - 60,000
= $40,000
The Incremental profit if Paola Slaughters chickens is, $40,000
Answer:
the after tax borrowing cost is $12,000
Explanation:
The computation of the after tax borrowing cost is shown below;
= Annual interest - tax savings
= ($200,000 ×0.10) - ($200,000 × 0.40)
= $20,000 - $8,000
= $12,000
hence, the after tax borrowing cost is $12,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
It is more profitable to continue processing by $5.2 per desk.
Explanation:
Giving the following information:
An unfinished desk is produced for $36.45 and sold for $64.35.
A finished desk can be sold for $76.00.
The additional processing cost to complete the finished desk is $6.45.
<u>We need to determine the effect on the income for further processing the desk.</u>
Contribution margin per unfinished desk= 64.35 - 36.45= $27.9
Contribution margin per finished desk= 76 - 36.45 - 6.45= $33.1
It is more profitable to continue processing.
Answer:
Production orientation
Explanation:
Power Motors Company has adopted a production orientation method which is why they have manufactured expensive dashboards and choose to ignore their customer's desire and wants. Firms or organisations which manufacture goods without considering their customers generally follow production orientation policy. This policy is fatal for long term sustainability and growth because they lose customers in long-run.
Answer:
B) Implement policies to encourage greater consumption.
Explanation:
The Paradox of thrift says that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving due to that total saving may fall because of individuals' attempts to increase their saving, Therefore, to avoid the paradox of thrift policies to encourage consumption must be implemented.