Answer:
Variable cost = $6,550
Explanation:
Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.
The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.
In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.
Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.
variable cost = $5,500 + $800 + $250
Variable cost = $6,550
Answera dnd Explanation:
A. The incentive conflict in principal-agent relationship as it concerns venture capitalism is conflict between venture capitalists who are the principals and the managers of the business investment who are the agents. The conflict is that venture capitalists are put to increase value of their investment and make profit while salaried managers are only out to feel their pockets through their managerial role in the company as they do not have an interest in the company and are unaffected by the loss or failure of the company. This is known as the principal agent moral hazard issue in venture capitalism
B. By managers maintaining some ownership in the company, there us reduced conflict as managers now see a reason to make sure company succeeds since they have an interest
Venture capitalists aim to have a seat in the board to make sure managers do not take bad decisions since they are able to veto such decisions
Answer:
a) 25,000
Explanation:
The computation of the economic profit is shown below;
Economic profit is
= Revenue - Explicit cost - Implicit cost
= $550,000 - $500,000 - $500,000 × 5%
= $550,000 - $500,000 - $25000
= $25,000
Hence, the economic profit on this deal was $25,000
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: 40 pounds
Explanation:
Given the following :
Ordering cost = $10 / order
Carrying cost = 4 cents per pound per day
Cost of pepperoni = $3 per pound
Daily demand = 20 pounds
Order quantity = 80 pounds
Average inventory level at the time in which 80 pounds of pepperoni was ordered is given as
Average inventory level is given as :
Order quantity / 2
80 pounds / 2 = 40 pounds
