Answer:
1)
cost of making (14000*22) = 308000
cost of buying (14000*(18+6)) = 336000
Difference cost = 28000
2)
No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.
3-a)
cost of making (14000*22) = 308000
cost of buying (14000*18) = 252000
3-b)
Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.
Answer:
20 is the socially optimal number
Explanation:
In this question, we are asked to calculate the socially optimal number of clean streets given the marginal cost of cleaning them.
To solve this problem, we employ a mathematical approach as follows:
Market demand = Sum of Individual demand
Magaret demand = p = (50-Q)/2 = 25-0.5Q
Thomas demand = P = 40-Q
Market demand = 25-0.5Q + 40-Q = 65-1.5Q
MC = 35
Socially optimal number = MC = Market demand
35 = 65-1.5Q
30 = 1.5Q
Q = 20
Most operating decisions of management focus on a narrow range of activity called the relevant range of production. This is further explained below.
<h3>What are
operating decisions?</h3>
Generally, Decisions about daily operations are the kinds of particular business choices that are made by every company on a daily basis. There are millions upon millions of these that have been taken, and thousands upon thousands of distinct varieties. Decisions on how to operate day-to-day activities in a firm are called "operational" and are made by a variety of employees.
In conclusion, The majority of operational choices made by management center on a certain subset of activities, which is referred to as the relevant range of output.
Read more about operating decisions
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To resolve a problem or select between multiple options
Answer:
18.37%
Explanation:
The internal rate of return is the return at which the net present value comes to zero
Here the net present value is the value at which the present cash inflows after discounting factor is exceeded then the initial investment. If this thing happens then the project would be accepted otherwise it would be rejected
The computation of the range of the plant IRR is to be shown in the attachment below.
Please find the attachmentHence, the internal rate of return is 18.37%
