Answer: above-average profits
Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.
Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.
Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.
Answer:
Consider the following calculations
Explanation:
TC=0.2Q2 - 5Q + 30,
MC=0.4Q - 5.
Equilibrium condition
MC=P
0.4Q - 5 = 6
0.4Q = 11
Q = 11/.4
=27.5
Profit = TR - TC
=27.5*6 - .2(27.5)2 -5(27.5)+30
=165 -756.25 -137.5 +30
= - 698.5
Firm is incurring loss
Firm will continue to produce as long as it is able to recover AVC
AVC =0.2Q -5
=0.2(27.5) -5
=5.5 -5
=0.5
Hence firm will continue to produce
Answer: contingent
Explanation: It refers to the employment in which the job of an individual is not fixed with the company. In case of contingent employment, the employees are usually hired when there is a specific project to complete that needs extra work force.
Unlike seasonal employment the these employments are non recurring and there is no time fixed for employment that an individual could expect.
Thus, from the above we can conclude that the given case is an example of contingent employment.
Answer:
$123
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
PENSION BENEFIT OBLIGATION
Beginning of the year Projected benefit obligation $360
Service cost ?
Interest cost $36
(10%*360)
Loss (gain) on PBO $0
Less: Retiree Benefits ($54)
End of the year Projected benefit obligation $465
Hence,
SERVICE COST= ($465-$360-$36+$54)
SERVICE COST= $123
Therefore the service cost component of pension expense for the year ended December 31 will be $123
