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3 years ago

Which of the following statements is correct?

Business

1 answer:

tensa zangetsu [6.8K]3 years ago

6 0

Answer:

The correct answer is d) Assuming that implicit costs are positive, accounting profit is greater than economic profit

Explanation:

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.

Accounting Profit

The difference between a business's revenue and its accounting

expenses.

One of the differences that can be seen, is that the economic profit will always be lesser when compared to accounting profits. When compared to economic profit, the accounting profits are only given during leap years.

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Tunnel Incorporated provided the following information regarding its single product: Direct materials used $ 250 comma 000 Dire

Paha777 [63]

Answer:

increase of $283,058

Explanation:

Consider the incremental Costs and Revenues arising from accepting a special order.

The company has excess capacity therefore, the current fixed overheads would be irrelevant (will have been incurred whether or not the special order is accepted. Also fixed expenses are irrelevant since regular sales will not be affected by this special order.

Sales (9,500× 52) 494,000

Direct materials (250,000/43,000×9,500) (55,233)

Direct labor (470,000/43,000×9,500) (103,837)

Variable manufacturing overhead (120,000/43,000×9,500) (26,512)

Variable selling and administrative (65,000/43,000×9,500) (14,360)

Additional fixed manufacturing overhead costs (11,000)

Net Income 283,058

Therefore an increase of $283,058 would be expected from accepting a special order.

8 0

3 years ago

N industry consists of three firms with sales of $360,000, $650,000, and $265,000.

Yanka [14]

These three together form total market, so here we have to add up everything to know volume of the market

A+B+C = 1,275,000 is the total market

Then we have to calculate individual market share

which would eb 1) 28.2%, 2) 50.9%, 3) 20.8%

This can be calcualated by simple percetage calculation. ( 1275000-360000/1275000*100)-100 will give what share each has.

Then we apply HHI formula

HHI = s1^2 + s2^2 + s3^2 + ... + sn^2

HHi is nothing but squaring of each of the percentages and adding them up

(28.2)2 +(50.9)2 +(20.8)2

812+2590+432 = 3834

HHI of 3834 shows it is highly competitve market.

5 0

3 years ago

Nelson Manufacturing has the following data:Variable costs are 60% of the unit selling price.The contribution margin ratio is 40

Strike441 [17]

Answer:

The answer is C. $500,000 + .40X = X

Explanation:

$500,000 + .40X = X

Break even point = 500000 ÷ 500

= 1000 units

5 0

3 years ago

In one state, a mortgagee holds legal title to real property offered as collateral for a loan, and the mortgagor retains the rig

True [87]

Answer:

Lein Theory.

Explanation:

Lien theory refers to the theory in which the buyer stops the property deed at the time of the mortgage. Also the buyer promised to pay all the payments so that the mortgage could become a lien on a property but at the same time the title would remain with the buyer but if all the payments are paid so the lien could be removed

Therefore in the given situation, it represents the lien theory

7 0

3 years ago

Calculate Producer Surplus if Reservation Price=20, Price=8, & Quantity=10.

Pavel [41]

C. 60
Explanation:
Producer's Surplus means the value producer derives from selling goods. For example, if producer is willing to sell the product for a price 8 but consumers are willing to pay a higher price, let's say 20, then producer achieves a surplus of 12 per unit. Let's calculate the producer's surplus -
As per question, Reservation Price (RP) =20, Price (P) =8, & Quantity (Q) =10
The formula for Producer Surplus (PS) is as follow:
PS = 1/2 (RP - P) x Q
= 1/2 (20-8) x 10 = 60

4 0

3 years ago