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andre [41]
3 years ago
5

Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can then sell the tor

tillas as is for total daily revenue of $22,500. Alternatively, Tasty can fold and fry the tortillas to make hard taco shells. The additional costs for making the taco shells are $4,200 per day, and the total daily revenues from the finished shells are $26,700. Given these figures,
A : the firm will make an additional $8,000 in income per day if it sells tortillas instead of taco shells.

B : the firm’s income will remain unchanged whether it sells tortillas or taco shells.

C : the firm will make an additional $4,200 in income per day if it sells taco shells instead of tortillas.

D : the firm will make an additional $14,500 in income per day if it sells taco shells instead of tortillas.
Business
1 answer:
mars1129 [50]3 years ago
3 0

Answer:

B: the firm's income will remain unchanged whether it sell tortillas or taco shells

Explanation:

The firm's income will still be the same because additional cost are incurred when producing the taco shells see below for calculation

When the firm processes tortillas: it makes a revenue of $22,500 and a cost of $8,000 realizing a profit of $14,500.

When the firm decides to fry the tortillas to make hard taco shells: it makes a revenue of $26,700 and total cost of $12,200 ($8,000+$4,200) then realizing a profit of $14,500.

Thus, the reason the profit won't change is because the firm incurred additional cost in processing the taco shells.

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3 years ago
Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes
Karo-lina-s [1.5K]

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs.  The resulting additional income is what is available to offset the fixed costs.

8 0
3 years ago
g . Kings Donut Inc common stock sells for $39.86 a share at a market rate of return of 9.5%. The company just paid its annual d
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6.29% is the rate of growth

<u>Explanation:</u>

<u>The following formula is used </u>

Price = D1 / ke -g

39.86 = 1.2 multiply with (1 + g) / 0.095 - g

3.7867 – 39.86 g = 1.2 + 1.2 g

2.5867 = 41.06 g

Now, we have to calculate the value of g  

g = 2.5867 divide 41.06

= 0.0629  

= 6.29 %

Where:

G = growth, ke = market rate of return, D1 = dividend ( annual), P = price of the share of company

7 0
3 years ago
Zahra's Decoratives produces and sells a decorative pillow for $97.50 per unit. In the first month of operation, 2,000 units wer
GalinKa [24]

Answer:

$38,675

Explanation:

sales price per pillow $97.50

total production 2,000 units

total sales 1,750 units

costs:

variable costs $22.10 per unit

fixed manufacturing $13.00 per unit

fixed administrative expenses $19.50 per unit

variable costing assigns only variable costs to inventory and COGS, so the COGS using variable costing = 1,750 units x $22.10 = $38,675

under variable costing, all fixed costs are period costs (fixed manufacturing and fixed administrative).

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3 years ago
A project manager has to manage tasks and identify schedule problems during the
BabaBlast [244]
Duration of the project. from start to end

3 0
3 years ago
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