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Leni [432]
4 years ago
12

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to b

usinesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market, and existing output firms operate under the assumption that the rival will hold constant. The inverse market demand for computes is P=5,900 – Q, and both firms produce at a marginal cost of $800 per computer. Currently, BlackSpot earns revenues of $4.25 million and profits (net of investment, R&D, and other fixed costs) of $890,000. The engineering department at BlackSpot has been steadily working on developing an assembly method that would dramatically reduce the marginal cost of producing these high powered computers and has fond a process that allows it to manufacture each computer at a marginal cost of $500. How will this technological advance impact your production and pricing plans? How will it impact Blackspot’s bottom line?
Business
1 answer:
Zina [86]4 years ago
4 0

Answer and Explanation:

In order to know how this affects the production we will first find out the quantities produce before and after the technological advance.

Profit maximizing, MR = MC (Marginal revenue = Marginal Cost)

TR = P x Q

TR= (5900 - Q) x Q = 5900Q - Q^2

MR = 5900 - 2Q (Taking derivative)

Now, MR = MC

5900 - 2Q = 800

Q = 2550

After Technological advancement,

MR = MC

5900 - 2Q = 500

Q = 2700

After technological advancement, Backspot Computers are able to produce more quantities. An increase of 150 units. The technological advancement has helped them.

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Answer:

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Explanation:

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3 years ago
A company's sales in year 1 were $250,000 and in year 2 were $287,500. using year 1 as the base year, the percent change for yea
marshall27 [118]
(287500-250000)÷250000 = 15%
7 0
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trasher [3.6K]

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the reason the leasing company is losing money is because the people in sales are paid their commission for every equipment not regarding the amount of profit that was made. This brought about leasing of so many equipments as they could without thinking if it would have a positive or negative impact on the company. they could lease as many equipments as they could because they were charging low rates to leasing companies.

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3 0
3 years ago
Demand is likely to be most elastic for which of the following: Ground beef O Footwear O Bread O Concert tickets​
-Dominant- [34]

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O Concert tickets​

Explanation:

Elastic demand is the demand that is highly responsive to changes in prices. A small change in price causes the demand to change by a big proposition. When the demand is elastic,  the change in demand is not propositional to changes in price.

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In conducting the audit procedures for the search for unrecorded liabilities, the materiality/scope for this area was accessed b
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The check disbursement does not require an adjustment to the financial statements for the fiscal year ending 12/31/2019, because the check is dated 1/6/2020.

Adjusting entries are changes to the journal entries which tries to match transactions to their correct accounting periods.  A check dated January 6, 2020 does not belong to the fiscal year ending December, 2019.

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