If the firm can increase its profit by increasing its output then the firm is not producing at where the marginal cost is equal to the marginal revenue. A profit-maximizing firm in a competitive market will produce its output at the point in which MC=MR.
Answer:
11.7%
Explanation:
The required rate of return = (D1/ / price) + g
The required rate of return = (2.1 / 25) + 0.033
The required rate of return = 0.084 + 0.033
The required rate of return = 0.117
The required rate of return = 11.7%
Answer:
Ans. Car loans must be $4,000,000 and Home loans $16,000,000 in order to use all the conditions in the problem. Return= $2,000,000
Explanation:
Hi, well, you need to make sure to get as many car loans as the conditions of the problem allows you, since it returns 14%.
I used MS Excel solver to find this result, please download the excel spreadsheet attached to this answer.
Best of luck.
Answer:
Efficiency variance = $851 favorable
Explanation:
<em>Variable overhead efficiency variance: A variance is the difference between a standard cost and the actual cost. Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
</em>
<em>Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance</em>
To calculate this variance, we do as follows:
Hours
4,700 should have taken(4,700 × 0.70 hrs) 3,290
but did take (i.e actual hours) 480 <u> 3,060</u>
Efficiency variance in hours 70 unfavorable 230 favourable
Standard variable overhead rate <u>× $3.70</u>
Efficiency variance <em> </em><u><em> 851
</em></u>
Efficiency variance = $851 favorable
<em> </em>
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Increase quantity demanded by 5 percent
