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alexira [117]
3 years ago
12

Wenqin is a farmer, and in the short run she produces 100 bushels of wheat. Her average total cost per bushel is $1.75, total re

venue is $450, and total fixed costs are $100. Wenqin's: Select one:
a. average fixed cost is $1.50.
b. economic profit is $250.
c. profit per bushel is $2.75.
d. average variable cost is $1.25.
Business
1 answer:
BARSIC [14]3 years ago
5 0

Answer:

c. profit per bushel is $2.75.

Explanation:

Let's calculate all of the parameters presented in the alternatives and compare to the real values:

Units sold = 100

Total cost per unit = $1.75

Total revenue = $450

Total fixed costs = $100

Average fixed cost = $100/100 = $1.00

Economic profit = $450 - ($1.75*100) = $275

Profit per bushel = $275/100 = $2.75

Average variable cost = $1.75 -$1.00 = $0.75

Therefore, the only alternative that presents correct values is c. profit per bushel is $2.75

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Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same,
Yakvenalex [24]

Answer:

Elasticity of supply for dog food = 0.95

Explanation:

From the question, we have:

New quantity supplied of dog food = 107.0

Old quantity supplied of dog food = Initial equilibrium quantity = 21.0

New price = $8.75

Old price = Initial equilibrium price = $1.50

Generally, the formula for calculating the elasticity of supply is as

follows:

Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%

Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%

Substituting the values into equation (1), we have:

Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931

Approximated to 2 decimal places, we have:

Elasticity of supply for dog food = 0.95

6 0
2 years ago
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,500 of dir
Norma-Jean [14]

Answer:

18,500 WIP balance at September 30th

Explanation:

Job A3B

3,500 direct materials

5,000 direct labor

10,000 Overhead (200% of labor = 5000 x 200%)

18,500 WIP balance at September 30th

The cost added during October will be part of October calculation, on September we should work with September values.

4 0
3 years ago
Janice has car insurance that she must pay four times a year. If each payment is $156, how much money should she set aside each
Lunna [17]

Answer:

Cheap Florida Auto Insurance. Low Rates from $53.99 / Month!

Explanation:

3 0
3 years ago
Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled
VARVARA [1.3K]

Answer:

$76,000

Explanation:

If we are going to prepare a flexible budget we need to calculate how much Seaworthy should have spent in labor costs in order to produce 2,000 units:

labor cost = 2 hours per unit x $19 per hour x 2,000 units = $76,000

If we compare the flexible budget to Seaworthy's actual costs, we will find an unfavorable variance of $250,000 (=$326,000 - $76,000). Obviously something went wrong with Seaworthy's production.

3 0
3 years ago
Select the best (most informative) answer. present value involves _____ whereas future value involves _____.
Marina CMI [18]
Present Value involves discounting, and future value involves compounding.

The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.

To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now. 
4 0
3 years ago
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