Answer:
Check the following explanation
Explanation:
(a) Since the marginal cost is constant at $1.50 and not increasing, the amount of hot dogs suppliers would want to supply is infinite as $1.50 will always be less than $2 and the more they supply, the more they earn.
(b) No, it would not remain at $2 for a long time. In a perfectly competitive industry, firms can easily enter or leave the industry, therefore, any supernormal profits will attract new firms to enter the industry and increase the overall supply of hot dogs, bringing the price back down to $1.50, where P = MC.
(c) When P = 1.50, Quantity demanded = 4400 - 1200(1.50) = 2600.
Number of firms = 2600/100 = 26 firms.
(d) Quantity supplied = 20(100) = 2000
When demand = supply, 2000 = 4400 - 1200P
P = 2
(e) Supernormal profits per day = (2-1.50)(100) = $50
Therefore, firms will pay a maximum of $50 a day, which is equals to the amount of supernormal profits earned.
Answer:
The unit costs are $ 4.87 for 70 % Conversion Costs
The unit costs are $ 5.54 for finished goods
Explanation:
Total Materials cost = $ 115,080
Material Costs for one unit= $ 115,080/ 34000= $ 3.3847= $ 3.39
Conversion Costs= $ 72,072
Conversion Costs for one unit = $ 72072/34000 * 70%= $ 1.4838= $ 1.48
Total Cost per unit= $ 3.39 + $ 1.48= $ 4.87
Process Cost summary
Quantity Schedule
Materials = ($3.39 *34,000)= $ 115,080
Cost Added by Department: Total Cost Unit Cost
Materials= $ 115,080 $ 3.39
Conversion Costs
Labor + Overheads ( 1.48 * 34,000)= $ 50,320 $ 1.48
Units still in process ($ 72072- $ 50320) = $ 19,752 $0.58
Total cost to be accounted for $ 187,152 $ 5.54
Answer:
b
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-38,000.
Cash flow in year 1 - 4 = $11,600
I = 12%
NPV = $(2,767).
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
Stock-split
Explanation:
A stock-split means that the existing price of one share of Nathan will be divided into two such that the two new shares will be exactly equal to one old share. Once that is done, small investors will be more comfortable buying the shares at a cheaper price.
Whether before or after the stock-split. A given amount invested will give an investor the same percentage ownership in the same company. It has only made Nathan's shares look cheaper to attract small investors while the market capitalization (overall value) of Nathan remains the same.
Answer:
The answer is: C) Deny the motion because ABC Inc. is a resident of Delaware
Explanation:
For purposes of diversity of citizenship, ABC Inc. is a resident of both Delaware and New York.
James can sue ABC Inc. in Delaware since both of them are residents of the state so jurisdiction applies. The court will deny ABC's motion to dismiss due to the fact that ABC is a resident of that state.