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densk [106]
2 years ago
6

Jane Westerlund owns a picture-framing store, The Caplow Co. The average price she receives for a framed picture is $120. This p

rice must cover her costs for a typical framed picture, which consists of $5 for glass, $2 for matting, $13 for the frame, and $30 for the labor involved. She must also cover monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for her salary. Assuming there is no change in price or the quantity demanded, if Westerlund wants to increase her advertising expenses to a total of $1,000 (a $500 increase), this would cause total costs to __________ and the break-even quantity to __________.
Business
2 answers:
Firlakuza [10]2 years ago
6 0

Answer:

Assuming there is no change in price or the quantity demanded, if Westerlund wants to increase her advertising expenses to a total of $1,000 (a $500 increase), this would cause total costs to <u>INCREASE</u> and the break-even quantity to <u>INCREASE</u>.

Explanation:

total variable costs per unit = $5 (glass) + $2 (mating) + $13 (frame) + $30 (labor) = $50 per frame

total fixed costs = $1,000 (rent) + $200 (utilities) + $500 (advertising) + $3,500 (manager's salary) = $5,200

sales price = $120 per frame

contribution margin = $120 - $50 = $70 per frame

current break even point = $5,200 / $70 = 74.29 ≈ 75 frames per month

if fixed costs increase by $500 (total fixed costs = $5,200 + $500 = $5,700)

the new break even point = $5,700 / $70 = 81.43 ≈ 82 frames per month

Olegator [25]2 years ago
5 0

Answer:

this would cause total costs to Increase and the break-even quantity to Increase.

Explanation:

Total Cost is the Sum of All Manufacturing and Non-Manufacturing  Cost of a product.

Advertising expense before adjustments are at $500. The cost of advertising does not vary with the sales quantities therefore this is a fixed cost.

Therefore an Increase in the advertising expense causes an increase in Total cost figure.

Break even quantity is a function of Fixed Costs divided by Contribution per unit.The break even quantity will definitely change. By increasing the fixed costs (<em>Advertising Expense</em>), the Break even quantity will increase.

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Perfectly competitive firms will: increase output up to the point that the marginal revenue of an additional unit of output is e
zavuch27 [327]

Answer:

increase output up to the point that the marginal revenue of an additional unit of output is equal to the marginal cost.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Perfectly competitive firms always strive to maximize profits by increasing their level of output, such that P = MC.

In a nutshell, in the long run equilibrium P = MR = MC.

Where;

P is the profit.

MR is the marginal revenue.

MC is the marginal cost.

7 0
3 years ago
A _____ is a person who will attest to your ability to perform a particular job.
Gnoma [55]
<span>A reference is a person who will attest to your ability to perform a particular job. A person has to face several examinations before he receives a job through an employer. Employers need to check the individual's background of previous performance, experience, and skills. A reference could provide the information needed for that examination.</span>
7 0
3 years ago
Read 2 more answers
What would be the best answer
devlian [24]

Answer:

D. Logical fallacies are unethical because they use logic to emphasize falsehood.

Explanation:

A logical fallacy is reasoning or error of argument which is logically incorrect and renders the validity of an argument invalid.

There are types of logical fallacies such as Ad Hominem, Straw man, etc.

Logical fallacies are easily identified because they usually lack evidence to support their claim.

When something is said to be unethical, it means that it is morally wrong.

Therefore, the false statement from the list is that logical fallacies are unethical because they use logic to emphasize falsehood.

7 0
3 years ago
Two types of deposit accounts are
andre [41]

Answer:

checking and saving

Explanation:

when you opening a new bank account. the bank will ask you want to open a checking and saving account or both

4 0
3 years ago
What term is commonly used to describe how a company builds and maintaining strong barriers to withstand competitive attacks?.
vovangra [49]

A natural next step is a term used to describe how a company builds and maintains strong barriers to withstand competitive attacks.

In the field of business, the natural next step can be described as a part of marketing principle #3. According to this marketing principle, there is a reaction shown by every competitor in a market to its rival.

The natural next step is a strategic plan to overcome rivals in a business by forming trusted and good relations with customers. Strong barriers in the form of enhanced connections with the customers are made so that competitive attacks could be withstood.

To learn more about barriers, click here:

brainly.com/question/14277264

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5 0
1 year ago
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