How division of labour could be used to make clay pots

A truck costs $ 306 comma 000 and is expected to be driven 111 comma 000 miles during its fiveminusyear life. Residual value is

natima [27]

Answer:

=$80,620

Explanation:

Under the unit of the production method, the cost of the asset is divided by its expected production level to determine the depreciation per unit.

For this truck, depreciation per unit

=$306,000 / 111,000 miles

=$2.78181 per mile

=$2.78 per mile

If the track is driven for $29,000 miles

The depreciation amount will be

=$2.78 x 29,000

=$80,620

5 0

4 years ago

Suppose that a demand curve exhibits two points. Initially, at price P 0 , the quantity demanded is Q 0 . When price changes to

dsp73

Answer and Explanation:

The formula to compute the price elasticity of demand is as follows:

= Percentage change in quantity demanded ÷ percentage change in price

At Price P0, the Quantity demanded is Q0

And,

At Price P1, the Quantity Demanded is Q1

Just like this, it could be computed

$\frac{Q_1 - Q_0}{(Q_1 + Q_0)/2}$ divided by $\frac{P_1 - P_0}{(P_1 + P_0)/2}$

4 0

3 years ago

A firm has estimated the following demand function for its product:

Rom4ik [11]

Answer:

(i) Q=300

(ii) Elasticity of Demand=-3.33 (elastic)

(iii) Income Elasticity= 2.5 (normal good)

(iv) Advertising Elasticity: 1.5

Explanation:

The Demand function is given by

$Q=100-5P+5I+15A$

(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:

$Q=100-5(200)+5(150)+15(30)=300$

(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula

$\eta_{Price}=\frac{\Delta Q}{\Delta P}\frac{P}{Q}$

From the above equation we get: $\frac{\Delta Q}{\Delta P}=-5$

Replacing in the elasticity formula

$\eta_{Price}=-5\frac{200}{300}=|-3.33|>1$

in absolute terms the elasticity is bigger than one so it is an elastic demand.

(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income

$\eta_{Income}=\frac{\Delta Q}{\Delta I}\frac{I}{Q}=5\frac{150}{300}=2.5>1$ [/tex]

Which is bigger than one, denoting this is a normal good because it's bigger than one.

(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before

$\eta_{advertising}=\frac{\Delta Q}{\Delta A}\frac{A}{Q}=15\frac{30}{300}=1.5$

3 0

3 years ago

Although transaction costs are reasonable, ASI has encountered financial problems with high production costs. Jonathan, a vetera

marshall27 [118]

Answer: B2B

Explanation:

Based on the information given, we can infer that the interaction of the employee with ASI is an example of B2B..

Business-to-business simply means a form of transaction that is done between businesses, such as between a manufacturer and the wholesaler. It doesn't take place between the producer and the consumer.

7 0

3 years ago

A firm which prepares its financial statements according to U.S. GAAP and uses a periodic inventory system had the following tra

saveliy_v [14]

Answer:

B. $4,342 using weighted average.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation to the answer is now given as follows:

Also note: See the attached excel file for the calculations of cost of sales using FIFO, LIFO and Weighted Average methods (in red color).

First In First Out (FIFO) refers to the inventory method whereby the inventory items purchased first are sold first.

Last In First Out (LIFO) refers to the inventory method whereby the inventory items purchased last are sold first.

Weighted average cost method refers an inventory costing technique whereby the average cost per unit is calculated by dividing the total cost of the goods available for sale by the total number of units available for sales.

From the question, we can obtained:

Total Tons (000s) Sold = May Sales + November Sales = 5 + 3 = 8

From the attached excel file, we have:

Weighted average unit cost = Total Cost ($'000s) / Total Tons (000s) Available for Sales = 5,970 / 11 = $542.73

Cost of sales under weighted average = Total Tons (000s) Sold * Weighted average unit cost = 8 * $542.73 = $4,342

Therefore, from the attached excel file and the calculations above, the correct option is B. $4,342 using weighted average.

Download xlsx

4 0

3 years ago