Much more expensive to borrow the money. They make loans in at least the 100 million range and interest is a big cost of doing business. Interest rates go up, so does the cost of money needed to be borrowed. That's a real expense for a bank. It is even a large expense for a home homeowner.
Answer:The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case.
Explanation:
Cold duck Airlines leases plane on a year long contract at an average cost of $600 per flight.The average cost of $600 per flight is calculated as Lease cost per year divided by number of flights. This tells us that the lease cost per year is fixed and the $600 average cost per flight is the Average Fixed cost. if Cold duck flies more planes between Tacoma and Portland The number flights will increase which will decrease the average lease cost per flight.
Other Costs fuel (flight attendants,etc) amount to $550 per flight, these costs will increase as Cold Duck Airlines increases flights between Tacoma and Portland. These costs should be treated as Variable costs because they increase as the number flights increases.
The revenue generated on each flight, which can be seen as the price for each flight is $1000.
The Firm maximizes its profits in a competitive market by producing a quantity level That makes Price equals Marginal cost, Marginal cost being the price of producing an additional unit, in this case is the cost of an additional flight which is $550 amount of other costs because lease cost fixed whether Cold Duck Makes 1 flight or 10 flights it doesnot change
The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case. Revenue would be equal to $550 when profit is at the maximum level
Answer:
the standard amount of materials allowed for the actual output is 23,310 ounces
Explanation:
The computation of the standard amount of materials allowed for the actual output is shown below:
= Actual output × direct material
= 3,700 units × 6.3 ounces
= 23,310 ounces
hence, the standard amount of materials allowed for the actual output is 23,310 ounces
The same is relevant
Answer:
$700 (not given in the options)
Explanation:
When the policy is purchased with a payment made in advance, the entries recorded are
Debit prepaid insurance $8,400
Credit Cash account $8,400
After the first month, the expense incurred is
= 1/12 × $8,400
= $700
Entries then required
Debit Insurance expense $700
Credit Prepaid Insurance $700
