Answer:
The firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
Explanation:
Normal profit equals zero economic profit or when total revenue equals
the addition of explicit cost and Implicit cost. Implicit cost is the opportunity cost.
Explicit cost = $200,000 + $75,000 + $30,000 + $20,000 + $35,000
=$360,000
Implicit cost is $90,000
Total revenue is $360,000
Normal profit = $360,000 - ($360,000 + $90,000)
$360,000 - $450,000
-$90,000.
This means the firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)
I think it’s b chapter 10
Answer:
a. $17.44 per hour
b. $43,600 ; $104,640
Explanation:
The computation is shown below:
a. Single plantwide overhead rate equals to
= Total Overhead Amount ÷ Budgeted Direct Labor Hours
where,
Total overhead amount is
= $625,000 + $900,000 + $105,000 + $175,000 + $300,000 + $75,000
= $2,180,000
And, the budgeted direct labor hours is 125,000
So, the overhead rate is
= $2,180,000 ÷ 125,000
= $17.44 per hour
2. Now the overhead cost is
For Deluxe model
= 2,500 direct labor hours × $17.44 per hour
= $43,600
For basic model
= 6,000 direct labor hours × $17.44 per hour
= $104,640
Answer: Market penetration
Explanation:
The market penetration strategy is one of the type of alternative growth strategy in which it mainly focus on gaining the high marketing share by selling the products and various types of services in the market.
The main advantage of this strategy is that the products are quickly adopted in the market and we also gain some effective incentives.
The market penetration strategy focuses on the organization growth and selling the products to the existing customers.
Therefore, Market penetration strategy is the correct answer.
<span> Excise taxes are most always included in goods like this</span>