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svet-max [94.6K]
4 years ago
15

In an economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input.

Business
2 answers:
dedylja [7]4 years ago
8 0

Answer:

False

Explanation:

Decision making in psychology is considered as a cognitive process that results in the selection of an idea or movement from another possible option. Whether or not every decision-making process results in a move, it is definitely a final choice. To define it, decision making is determining the alternatives according to the preferences and values of the decision maker and choosing among them.

Choosing the appropriate criterion (or criterion) for choosing the appropriate alternative is an important step in making a decision.

- If a problem involves constant input among possible alternatives, the appropriate general criterion is to maximize the result. For example, a company is considering buying a new office copy machine. If the two competing alternatives have the same value (fixed input), you can select a photographer with a higher output of the corresponding criteria. The criterion may be as simple as the speed of the machine (pages per minute) or a more sophisticated criterion that incorporates the speed of the machine with the presence of some complex features.  

- İf a involves fixed output problem then the criteria is to minimize access to appropriately . For example, a company might consider installing a new elevator. Two alternate alternate load capacity, working speed and so on. If you have the same efficiency as measured, there will be a lower price (minimum entry) elevator installation.

- If no inputs or outputs are identified fixed between the alternatives, the appropriate criterion is to increase the gain (output) or simply increase the profit. For example, one of the two competing production machines, and if the cost and output rates of the machines are different, the appropriate criterion is to choose a machine with higher profitability (machine-building benefits - costs).

Tresset [83]4 years ago
3 0

Answer:

Correct answer is False for economic decision making, when the inputs and outputs are fixed, the criterion to use is minimize the input

Since, both input and output are fixed, the input can’t be decreased. Each of them has to be fixed in directive to vary the association among them. (It can be fixed contribution, or fixed production or neither one of them is fixed)

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ased on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed
pickupchik [31]

Answer:

$142,000

Explanation:

Sales of 22,000 units

Total variable costs is $99,000

The fixed cost is 30,000

Operating income $36,000

Therefore budgeted amount for 20,000 units can be calculated as follows

= 99,000+30,000+36,000

= 156,000

The selling percentage is

=156,000/22,000

= 7.1

7.1× 20,000

= 142,000

Hence the bugected anou t for 30,000 units $142,000

4 0
3 years ago
Firm A’s demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with
Mkey [24]

Answer:

$980

Explanation:

Formula for Economic Order Quantity

Q = square root of (2*Annual demand* Order Cost)/Holding Cost

Where Q = Economic order quantity, which is 28 in our question.

28 = square root of (2* (15 units per month *12 months)* Order cost)/0.25*

28 = square root of 2*180*order cost/0.25

28 = square root of 360*order cost/0.25* (180 units *$10 per unit)

28= square root of  360* order cost/450 .

Square both sides

784 =  360* order cost/450

Multiply both sides by 450

352,800 = 360* Order cost

Hence order cost  = 352800/360 = $980

3 0
3 years ago
The selling price of the company’s product is $22 per unit. Management expects to collect 75% of sales in the quarter in which t
tia_tia [17]

Answer:

good luck

Explanation:

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7 0
3 years ago
Determine how the following scenarios affect the firm's cash position. Identify whether the scenario describes a financing, inve
Tasya [4]

Answer:

Scenario                                                           Description

Sell a tract of land it has held for years          Investing

Pay preferred stock dividends                        Financing

Increase accrued liabilities                              Investing

Sell some old equipment                                 Operating

Issue shares of common stock                        Financing

Increase inventory holdings                             Operating

Buy property for a future factory                      Investing

Also, Scenarios that are expected to increase a company’ cash-flow are Issue shares of common stock, Increase accrued liabilities and Sell some old equipment.

3 0
3 years ago
Lucia is using cost-volume-profit analysis to predict profits for a new product line. Which of the following reflect how Lucia’s
tino4ka555 [31]

Lucia’s analysis is subject to assumptions because(c) The analysis lacks validity if the total fixed costs required for the calculated break-even point generates too low of capacity.

Explanation:

Cost-volume-profit analysis is used to make short-term decisions.

Cost-volume-profit (CVP) analysis is used to study the changes in cost and volume and how its impact on the company's operating income and net income.

While  performing <u>Cost-volume-profit (CVP) analysis</u>  several assumptions are made like assuming the  Sales price per unit to be  constant. Variable costs per unit  to be constant.

The five basic component of CVP analysis includes

  • volume or level of activity
  • unit selling price
  • variable cost per unit
  • total fixed cost
  • sales mix.

5 0
3 years ago
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