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
Mandarinka [93]
3 years ago
6

American Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A new variant of the chemical has be

en discovered, and if the basic compound were processed into the new variant, the selling price would be $83 per gallon. American expects the market for the new compound variant to be 8,000 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $160,000.
a. What would be the effect on total profit if American produces the new compound variant?

If American produces the new compound, profit will increase/decrease by ?
Business
1 answer:
Shalnov [3]3 years ago
3 0

Answer:

If American produces the new compound, profit will increase by $88,000

Explanation:

increase in selling price = selling price of new variant of chemical - selling price of chemical compound

                                         = $83 - $52

                                         = $31

Net increase in profit = total increase in selling price - additional processing cost

                                    = $31*8000 - $160000

                                    = $248000 - $160000

                                    = $88,000

Therefore, If American produces the new compound, profit will increase by $88,000.

net increase in profit =

You might be interested in
ECON Good morning can someone answer this please asap
dusya [7]
The answer is B because both have access to capital that competitive markets wouldn’t give them because they dominate the market place and drive out competitors
5 0
2 years ago
Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl
Brilliant_brown [7]

Answer:

B. $80

Explanation:

The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income

8 0
3 years ago
Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featu
Alex

Answer:

D, product-communication adaptation

Explanation:

Product adaptation can be defined as the process of modifying a product to make it useful for a variety of users.

Communication adaptation can also be defined as the change in a product's communication as a result of a change in product strategy.

Product-communication adaptation can be defined as the modification of a product for a variety of users but ensuring that the marketing of the product is through standard communication channels.

In the case of Campbell adapted his product to look like M'm M'm Good product but ensured that he used a standard communication channel (ads) to market his product.

Cheers.

6 0
3 years ago
Presented below are a number of transactions. Determine whether each transaction affects common stock, dividends, revenue, expen
marin [14]

Answer:

(a) It affects expense account.

(b) It affects Revenue account.

(c) It affects expense account.

(d) It affects Expense account.

(e) It affects Dividend account.

(f) It affects Revenue account.

(g)  It affects Expense account.

(h)  It does not affect stockholders’ equity because purchase of equipment for cash doesn't affect stockholders’ equity.

(i) It affects Common stock account.

4 0
3 years ago
Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?
marta [7]

Answer:

Option D

Explanation:

Because it is not one of the key assumption underlying ppf

4 0
3 years ago
Other questions:
  • During January 2020 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 we
    8·1 answer
  • By marketing an item, sellers attempt to increase the real value of an item.<br> True or false
    8·1 answer
  • What is true if you only pay your minmium amount each towards your credit card bill
    14·1 answer
  • The IMA suggests​ that, when faced with an ethical​ dilemma, the first thing management accountants should do is call the​ IMA's
    7·1 answer
  • The use of teams is becoming increasingly prevalent in the U.S. workplace, partly because of the many benefits associated with t
    7·1 answer
  • The main purpose of a cover letter is to: a. Get hired b.be called in for an interview c. Let your friends know how your job sea
    14·2 answers
  • Suppose that TipsNToes, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of de
    12·1 answer
  • allatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% o
    13·1 answer
  • Which of the following is a condition in the general environment that if exploited effectively helps a company reaches strategic
    14·1 answer
  • Companies and their customers working together to develop products that meet customer needs is known as​ ________.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!