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
Marina CMI [18]
3 years ago
15

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume

that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in ten cents in revenue. Also assume that adding the delivery vehicle would not affect any other costs.
Required:
a. What is the MRP?
b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?
c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?
Business
1 answer:
tangare [24]3 years ago
7 0

Answer:

a. What is the MRP?

marginal revenue product = marginal product of labor x marginal revenue per output unit

MRP = 1,500 packages x $0.10 per package = $150

marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)

The company should add the delivery truck because MRP is higher than MRC.

b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?

MRP = $150 (doesn't change from question a)

MRC = $200 (the cost of renting the delivery truck)

The company should not add the delivery truck because MRP is less than MRC.

c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?

MRP = 750 packages x $0.10 per package = $75

MRC = $100

The company should not add the delivery truck because MRP is less than MRC.

You might be interested in
Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a
kiruha [24]

Answer: A. Identify issues.

Explanation: Hisaoki's company failed to identify issues, because they never considered problem might arise but it did arises.

In identifying issues one must be clear what the problem is and plan on how to solve them, analyzing the problem is important when identifying issues. This help you to be about the situation when there is problem.

3 0
2 years ago
imagine braintly not allowing you to talk to a helping hand. yall doing too much that's why they think they the Kardashianios​
Readme [11.4K]

Answer:

That's just how they are lol

5 0
3 years ago
URGENT!!!
Gwar [14]

so,nominally,................... (copied by :- @-Venkatesh Rao cheap tricks-)

3 0
2 years ago
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a.
PolarNik [594]

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

0.5 = -6% / Change in price

0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

3 0
2 years ago
Why do cell phone service firms charge more on prepaid<br>​
lubasha [3.4K]

I will give you a link from quizlet. Just wait..

4 0
2 years ago
Other questions:
  • Sterling Inc. has two long-term notes outstanding. One is a five-year note for $50,000. An equal amount of principal must be rep
    13·1 answer
  • A(n) ________ refers to the first public offering of a corporation's stock.
    11·1 answer
  • Most organizations strive to resolve between _______ of requests at the first level of support in less than an hour.
    12·1 answer
  • Spaceley’s Sprockets has just developed a new product. George Jetson, the Head of Product Development, feels that the product is
    14·1 answer
  • Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The sh
    10·1 answer
  • Which of the following illustrates the law of demand? a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteri
    9·1 answer
  • का<br><br><br><br><br>स्थानीय प्रविधि भनेको के हो ?<br>​
    9·1 answer
  • Scott wants to accumulate $3,800 over a period of 11 years so that a cash payment can be made for roof maintenance on his summer
    12·1 answer
  • Similarities between commodity and money​
    15·1 answer
  • The marketing department, finance department, human resources department, and information systems department all operate at the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!