All categories

3 years ago

Comparing marginal revenue to marginal cost

Business

1 answer:

Mariana [72]3 years ago

5 0

Answer:

(i) reveals the contribution of the last unit of production to total profit

and

(ii) is helpful in making profit-maximizing production decisions.

Explanation:

As MR and MC can tell u what the last output contributed to the profit. change in profit = MR-MC. So we can gain insight on the profit and firm can then according to this make decision on how much to produce i.e. level where MR = MC.

You might be interested in

Under the market system, ______ coordinate the decisions made by households and businesses.

MakcuM [25]

Under the market system, prices coordinate the decisions made by households and businesses.

<h3>What is a market system?</h3>

It should be noted that a market system simply means an economy whereby the individual makes choices in the market and decisions.

In this case, under the market system, prices coordinate the decisions made by households and businesses.

Learn more about market system on:

brainly.com/question/1659498

#SPJ1

7 0

1 year ago

As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the f

drek231 [11]

Answer:

a. sharing information across the organization

Explanation:

A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.

In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.

This is a failure in the function of sharing information across the organisation.

Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer

4 0

2 years ago

Find m2V. V W (2x + 29) (10x – 27)° Y

bogdanovich [222]

Answer:

31x

17x

Explanation:

we should add 2x+29

we should subtract 10x and 27

8 0

2 years ago

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore, MD. Marlin has many rivals based in Ch

Ostrovityanka [42]

Answer:

Focus Strategy

Explanation:

Focus Strategy is a marketing strategy in which a business focuses its resources on entering or expanding into a narrow segment of the market or industry.

Usually a focus strategy is used where the company knows its section and has products to meet its needs competitively.

Focus strategy is one of three strategies for generic marketing.

7 0

3 years ago

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes a

Ann [662]

Answer:

A. The answer is:

Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000

B. The answer is:

Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

Explanation:

Denote X is the total revenue Qwik Service has to earn.

We have:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet break-even, the total contribution margin should be equal to fixed cost or: 0.3X = 12,000,000 <=> X = $40,000,000

=> Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000.

The note Y is the total revenue per one outlet.

At one outlet, revenue and margin will be:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet net income target of $45,000, the total contribution margin should be equal to fixed cost of $60,000 and delivering $45,000 net income or: 0.3X = 45,000 + 60,000 <=> X = $350,000.

=> Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

6 0

3 years ago