Answer:
The company should be willing to pay for the least profitable product (TC) which is $12.4/minute
Explanation:
TC GL NG
Contribution margin / unit $99.2 $129.22 $95.76
(Selling price-Variable costs)
Contribution margin/minute $12.4 $18.2 $12.6
(Contribution margin/Minutes
on the constraint)
Conclusion: Hence, the company should be willing to pay for the least profitable product (TC) which is $12.4/minute
Working
Contribution margin / unit = Selling price-Variable costs
TC= $494.4 - $395.2 = $99.2
GL= $449.43-$320.21 = $129.22
NG= $469.68-$373.92 = $95.76
Contribution margin/minute
TC= $99.2 / 8 =$12.4
GL= $129.22/7.1 =$18.2
NG= $95.76/7.60 =$12.6
It can be deduced that the number of blankets that must be sold in order for the company to achieve the target profit is 40000.
<h3>How to calculate the target profit</h3>
From the information, Blissful Blankets' target profit is $520,000 and each blanket has a contribution margin of $21. Fixed costs are $320,000.
Therefore, the number of blankets that must be sold to achieve the target profit will be:
= (520000+320000)/21
= 40000
Learn more about profit on:
brainly.com/question/1078746
Answer: The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
Explanation:
For a cost minimizing output, it is required for a firm to employ resoruces where the MPl/Pl = MPk/Ok
Note that:
MPl = marginal product of labor
Pl = labor price
MPk = marginal product of capital
Pk = capital price
A firm that has cheap capital resources will employ more capital likewise the company that has cheap labor resources will employ more of labor.
The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
Answer:
131,250= number of units
Explanation:
Giving the following information:
<u>We need to calculate the number of units to be sold to maintain a profit of $175,000.</u>
Unitary variable cost= $3
Fixed expenses= $350,000
Selling price= $7
Net income= total contribution margin - fixed cost
175,000= number of units*(7 - 3) - 350,000
525,000 = number of units*4
525,000 / 4= number of units
131,250= number of units
Answer:
Option (c) is correct.
Explanation:
The GDP Deflator is defined as the measure of price level of all the domestically produced final goods and services in a particular year. Consumer price index is a measure of price level of a fixed basket of goods purchased by a consumer.
GDP Deflator is not based on the fixed basket of goods and services but CPI is based on the fixed basket of goods.
The formula for GDP Deflator is as follows:
= (Real GDP ÷ Nominal GDP) × 100