1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vika [28.1K]
3 years ago
9

Changes in the prices of key commodities can have a significant impact on a company’s bottom line. According to a September 27,

2007, article in the Wall Street Journal, "Now, with oil, gas and electricity prices soaring, companies are beginning to realize that saving energy can translate into dramatically lower cogs." Another Wall Street Journal article, dated September 9, 2007, states, Higher grain prices are taking an increasing financial toll." Energy Is an input into virtually all types of production; corn is an input into the production of beef, chicken, high-fructose corn syrup, and ethanol (the gasoline substitute fuel).
a. Explain how the cost of energy can be both a fixed cost and a variable cost for a company.
b. Suppose energy is a fixed cost and energy prices rise. What happens to the company’s average total cost curve? What happens to its marginal cost curve? Illustrate your answer with a diagram.
c. Explain why the cost of corn is a variable cost but not a fixed cost for an ethanol producer.
d. When the cost of corn goes up, what happens to the average total cost curve of an ethanol producer? What happens to its marginal cost curve? Illustrate your answer with a diagram.
Business
1 answer:
mihalych1998 [28]3 years ago
5 0

Answer:

a. Explain how the cost of energy can be both a fixed cost and a variable cost for a company.

Energy is a fixed cost when it affects divisions of the company that are not directly related with the production process, for example, the energy used to power the administrative office.

Energy becomes a variable cost when it powers things such as machinery or equipment, that are directly related with the production process of a good.

b. Suppose energy is a fixed cost and energy prices rise. What happens to the company’s average total cost curve? What happens to its marginal cost curve? Illustrate your answer with a diagram.

The average total cost curve goes up, because the fixed cost curve is a part of the average total cost curve, and energy, as a fixed cost going up, rises the fixed cost curve as well.

The marignal cost curve does not change, because it is not affected by the rise of the cost of energy when it is a fixed cost.

c. Explain why the cost of corn is a variable cost but not a fixed cost for an ethanol producer.

Because corn is the raw material used to make ethanol. For an ethanol producer, the cost of producing ethanol changes depending on the amount of corn used.

d. When the cost of corn goes up, what happens to the average total cost curve of an ethanol producer? What happens to its marginal cost curve?

Both curves go up, because both curves are affected by an increase in the price of corn when corn is a variable cost.

You might be interested in
An individual is now 50 years old, that he plans to retire in 10 years, and that he expects to live for 25 years after he retire
Nutka1998 [239]

Answer:

Ans.  He must save during each of the following 10 years, at the end of each year $32,452.

Explanation:

Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.

PresentValue_{10} =\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Where:

A= $65,156

n= 24

r= 0.08

Therefore the present value in year 10 is:

PresentValue_{10} =\frac{65,156((1+0.08)^{24}-1) }{0.08(1+0.08)^{24} }=686,012

So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.

Every should look like this.

686,012=100,000*(1+0.08)^{10} +\frac{A((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} }

And we solve this equation for "A".

686,012=A(14.4865625)+215,892

A=\frac{(686,012-215,892)}{14.4865625} =32,452

Best of luck.

5 0
3 years ago
which of the following statements are correct regarding the requirements to meet the economic performance test under the various
bija089 [108]

Certain liabilities, which includes rebates, refunds, and employees reimbursement payments, may be deducted while incurred irrespective of while charge is ma is INCORRECT concerning the necessities to satisfy the financial overall performance test.

The required details for liabilities in given paragraph

A legal responsibility is some thing someone or corporation owes, normally a sum of money. Liabilities are settled over the years thru the switch of financial advantages consisting of money, goods, or services. Recorded at the proper aspect of the stability sheet, liabilities encompass loans, debts payable, mortgages, deferred revenues, bonds, warranties, and accumulated expenses. Liabilities may be contrasted with property. Liabilities consult with matters which you owe or have borrowed; property are matters which you personal or are owed. a legal responsibility is an responsibility among one celebration and every other now no longer but finished or paid for. In the arena of accounting, a monetary legal responsibility is likewise an responsibility however is greater described through preceding enterprise transactions, events, sales, trade of property or services, or whatever that could offer financial gain at a later date.

Current liabilities are normally considered short-term (anticipated to be concluded in three hundred and sixty five days or less) and non-present day liabilities are long-term (three hundred and sixty five days or greater).

To know about liabilities click here

brainly.com/question/14921529

#SPJ4

Complete question

Which of the following statements is INCORRECT regarding the requirements to meet the economic performance test under the various ways a liability can arise?

8 0
11 months ago
What is an overdraft? A. Not making deposits frequently enough B. Making purchases at too many different retailers C. Going belo
svp [43]

Answer:

D. Spending more money than you have in your account

Explanation:

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn".

5 0
3 years ago
Read 2 more answers
Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project.
GalinKa [24]

Answer: TRUE

Explanation: PERT NETWORKS is a project management system/ tool that is prepared before the commencement of a project by creating durations for each task and assigning tasks. It was developed by the United States Navy.

GNATT CHARTS are charts prepared mainly as GRAPHICAL REPRESENTATION of the various tasks,its duration and mile stones achieved during the project. GNATT CHARTS are more efficient and more basic in tracking the progress of a project as it breaks the project into small phases,tracks MILESTONE ACHIEVED as the project continues.

6 0
2 years ago
Just do from 5 to 8. Thanks a bunch. Also no incomplete answers or reported. Also, I need this like in 7 hours
kicyunya [14]

Answer:

Could you be more clear!?

Explanation:

4 0
2 years ago
Other questions:
  • ​a(n) __________ is used to determine the benefits that target customers value and how customers rate the relative value of vari
    8·1 answer
  • Marketers have no flexibility in setting prices under conditions of
    15·1 answer
  • Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to internation
    11·1 answer
  • What is true about Title VII of the Civil Rights Act of 1964?
    15·1 answer
  • Steve goes to Tri-State University and pays $40,000 in tuition. Steve works to pay for his schooling and has an AGI of $37,000.
    11·1 answer
  • On April 1, the price of gas at Bob’s Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1,
    10·1 answer
  • OSHA standards appear in the ___________ and are then broken down into ____________. A. Code of Federal Regulations (CFR), Parts
    10·1 answer
  • Choose the correct statement.
    14·1 answer
  • The required reserve ratio is 0.2 and the Federal Reserve sells $1 million in securities. If there are no leakages and banks do
    10·2 answers
  • 1988
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!