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liubo4ka [24]
3 years ago
9

Initially, you produce 100 boxes of jelly beans per time period. Then a new customer calls and places an additional order for je

lly beans, requiring you to increase your output to 101 boxes. She offers you $1.75 for the additional box. Should you produce it?
Business
1 answer:
erastova [34]3 years ago
5 0

Answer:

You should produce as long as the marginal cost per additional box is lower than the marginal revenue obtained by the additional box.

In other words, if the marginal cost of producing the 101th box is lower than $1.75, then, you should continue to produce, because revenue will be higher than cost, and a profit will be made as a result.

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You buy 100 shares in a no-load mutual fund at its net asset value of $10. during the year, the mutual fund distributes $0.75 in
Wittaler [7]
<span>Sale Proceeds of Mutual Funds = 100 Shares * $12.03 = $1203 Add: Dividend Earned on shares = 100 Shares * $0.75= $75 Less: Purchase cost of shares = 100 Shares * $10 = $1000 Less: Exit fees = $1203*5.5% = $66.17 Net Income from Investment = $211.83 Earning in %= $211.83 / $1000 = 21.18%</span>
5 0
3 years ago
Whispering Winds Corp. purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $5,
Wittaler [7]

Answer: $0.29 per mile

Explanation:

Truck is to be driven for 100,000 miles.

It has a cost of $34,000 and a salvage value of $5,000.

Useful life is 8 years.

Depreciable cost per mile under units-of-activity method = (Cost price - Salvage value) / Miles to be driven

= (34,000 - 5,000) / 100,000

= $0.29 per mile

3 0
2 years ago
Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $
Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

Production= 43,000 units

Variable costs are $2.95 per unit

Avoidable Fixed costs= $73,000 per year

Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

We need to calculate the cost of producing and buying and choose the best option.

Production:

Total cost= 43,000*2.95 + 73,000= $199,850

Buy:

Total cost= 43,000*3.7= $159,100

It is cheaper to buy the component. At this level of production by $40,750.

8 0
3 years ago
_____ are one of the inputs to manufacturing and service-delivery processes. a. Subassemblies b. Stock-keeping units c. Finished
Contact [7]

Answer:

a. Subassemblies

Explanation:

Subassemblies are one of the inputs to manufacturing and service-delivery processes. This is because these are small units that need to be assembled separately but then later become part of the final larger manufactured product. Therefore since they are part of the final manufactured product they are an input in the manufacturing process of that larger product needed in order for it to be finished.

3 0
3 years ago
Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2023.The following items are taken f
Aliun [14]

Answer:

A) See attached file for Balance Sheet

B) Current ratio = 1.26

C) Debt to Asset ratio = 18%

The Current ratio tells us that the company has 1.26 dollars of current assets to cover 1 dollar of current debt. That is a good thing, but to know if it´s enough covers, further information is needed. Others ratios can help to complete the picture as for example, quick ratio, assets turn over, inventory turn over, receivables turn over, etc. The debt to assets ratio. Tells us that the company owes 18% of its assets. The rest belongs to the stockholders. Again, it´s a good thing, but further information can help us to know if the company can invest in new projects, financing it with debt in a profitable way, for example, if Return on Assets is higher than debt rate.

Explanation:

B) Current ratio = Current Assets / Current Liabilities

   Current ratio = 52,140 / 41,400

   Current ratio = 1.26

C)Debt to Asset ratio = (Total Liabilities / Total Assets)*100

   Debt to Asset ratio = (121,400 / 691,400)*100

   Debt to Asset ratio = 18%

The current ratio measures a company's ability to pay short-term obligations or those due within one year, by relating current assets with current liabilities (liquidity ratio). The debt to total assets ratio shows the percentage of a company's total assets that were financed by creditors (financial ratio).  

3 0
3 years ago
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