Answer:
Sales 950,000
Less: Relevant cost:
Variable expenses 380,000
Avoidable fixed manufacturing expenses 217,000
Avoidable fixed selling and administrative expenses 178,000
Contribution 175,000
The total profit of Furrow Corporation reduces by $175,000 if the product is discontinued.
Explanation:
In this question, there is need to determine contribution, which is the excess of sales over relevant costs. Relevant costs are comprised of variable cost and avoidable fixed costs. The product should not be discontinued since the contribution is positive. Deleting a product with positive contribution reduces the total profit of the company by the amount of positive contribution.
Answer:
Yes
Explanation:
because south Africa can't put the money on the side
Answer:
profit for the day $ 2,001.64
Explanation:
We should subtract from the revenue of the 200 sandwhich prepared and sold the variable cost to made the sandwhihc the loss for the lost sales and the proportional fixed cost considered are allocated among the 25 days which the restaurant is open.
200 x $15 dollars = $ 3,000
28 x $5 loss sales: $ (140)
variable cost: 200 x $4 $ (800)
proportional fixed cost:
(1,234 + 225) / 25 = <u> $ (58.36) </u>
profit for the day $ 2,001.64
Answer:
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that P = ATC, P>ATC, MR =MC, or MR>MC at the optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True False
This indicates that there is a markup on marginal cost in the market for shirts. True False
Explanation:
In the long run, monopolistically-competitive entities produce at a level where marginal cost and marginal revenue are equal. This makes it impossible for individual companies to sell their products at prices above the average cost. This situation means that monopolistically-competitive companies will always earn zero economic profit in the long run.
Answer:
a)
$34.4
b)
$37.20
c) $59.57
Explanation:
Given:
Dividend paid = $2.15
Growth rate = 4% = 0.04
Required return = 10.5% = 0.105
Now,
a) Present value = 
for the current price n = 1
thus,
Current price = 
= 
= $34.4
b) Price in 3 years
i.e n = 3
=
= 
=
$37.20
c) Price in 15 years
i.e n = 15
=
= 
= $59.57
