<span>A firm is located along a
river, which uses water from the river to cool its machinery and returns the
water to the river several degrees warmer, which has led to a decline in the
fish population downstream of the firm. If the firm does not have to pay for
the damage to the downstream fish, the market equilibrium price will be efficient
and the market equilibrium quantity will be efficient.</span>
Answer:
i do not know but wait reread your quetion now
They trade an item for another item
Answer:
$94,020
Explanation:
Calculation for the cost of the machine using the formula below:
Cost of the machine = New stamping machine - (New stamping machine × Discount percentage) + Transportation + Sales tax + Installation
= $87,000 - ($87,000 × 5%) + $3,000 + $6,520 + $1,850
= $87,000 - $4,350 + $3,000 + $6,520 + $1,850
= $94,020
Therefore, cost of the machine is $94,020
Answer:
1. $6.50 per machine hour
2. $920
3. $ 17.69
4. $21.23
5. <u>Pricing methodology - Cost plus Mark -up</u>
- This ensures that the price charged covers all costs related to the product, which is good for maintaining profits.
- However the price does not consider the market demand and competition which might affect sales volumes
Explanation:
<u>Predetermined overhead rate</u>
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
= $650,000 / 100,000
= $6.50 per machine hour
<u>Total manufacturing cost assigned to Job 400</u>
Direct material $450
Direct labor cost $210
Overheads Applied ($6.50 × 40) $260
Total manufacturing cost $920
<u>Unit product cost for Job 400</u>
Unit product cost = Total Cost / Number of units completed
= $920 / 52 units
= $ 17.6923
= $ 17.69
<u>Selling price if Moody uses a markup percentage of 120%</u>
Selling price = Unit product cost × 120 %
= $ 17.69 × 120%
= $21.23