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Lelechka [254]
3 years ago
10

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combinati

on of resources in producing those loaves is 10 units of labor, 7 units of land, 2 units of capital, and 3 units of entrepreneurial ability, selling at prices of $20, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the firm's total revenue? b. What is its total cost? c.Calculate the amount of economic profit or loss. d. Will it continue to produce banana bread? e. If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? Next
Business
1 answer:
Darina [25.2K]3 years ago
5 0

Solution:

a. What is the firm's total revenue?

Multiply the sales price by either the number of units sold to determine overall revenue.

The total income amounts to 2 dollars (price) and 400 more (bread loaves sold).

Therefore, the total income is $800.

b. What is its total cost?

Multiply increasing variable usage (the number of units used) by input price and add both values together to measure total costs.

Total cost equals 10 × $20 (cost of labor) + 7 × $60 (cost of land) + 4 × $40 (cost of capital) + 3 × $20 (cost of entrepreneurial ability) = $840.

c.Calculate the amount of economic profit or loss.

For this operation, benefit / loss is equal to total revenue less overall cost. In this case, profit / loss is equivalent to $800 (total income) minus $840.

If the total income equals the total cost, the corporation will profit; but, if the total cost exceeds the total income, the company will have a loss.

d. Will it continue to produce banana bread?

The company will keep producing banana bread if it receives fine, with zero economic profit.

However, the firm can stop producing banana bread if it loses money (when its total cost equals its total revenue).

e. If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good?

If the product has contributed in a positive way, other businesses or individuals are going to want to make banana bread. Therefore, resources are going to pour into this good bakery. With the economic loss, money must disburse this pastry commodity, when companies or individuals would leave the market so that the loss could not be prevented. When economic profit is negative, no change occurs, as no new companies enter the market, no companies leave. There is no change.

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Answer:

D is very good but A and c are good to And b if so I would choose all four

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3 years ago
You have entered into a long forward contract on a dividend-paying stock some time ago, and this will expire in six months. It h
Vlad1618 [11]

Answer:

correct option is B. -$4.02

Explanation:

given data

delivery price = $40

current stock price = $35

fixed dividend yield = 8% = 0.08

risk free rate = 12% = 0.12

solution

as we know that forward contract is a agreement that is made between 2 parties ( seller or buyer ) asset in future at today fix price in specified time,

we get here long forward contract value that is express as

long forward contract = \frac{stock\ price}{(1+dividend\ rate)^t} -\frac{forward\ rate}{e^{r*t}}    ...................1

put here value we get

long forward contract = \frac{35}{(1+0.08)^{6/12}} -\frac{40}{e^{0.12*6/12}}  

solve it we get

long forward contract = -$4.02

so correct option is B. -$4.02

5 0
3 years ago
​Barrett, Inc. reports the following information for the year ended December​ 31: Beginning Finished Goods Inventory 70 units Un
Dmitry_Shevchenko [17]

Answer:

Operating Income 20,600

Explanation:

First Step will be to calculate the contribution of the begining inventory and the contribution of the untis produced in this period:

BEGINNING INVENTORY

70 units at $150 = $10,500

cost of BI                 $3,600

Contribution Begining Inventory         $6,900

get the production of this year contribution

Sales Units              150

Direct Materials 25

Direct Labour     10

Variable MO       15

Variable S&A       6

Total Variable           56

Contribution            94

Unit produced 450

Contribution Produced units 42300

Second, the operating income:

     Contribution Begining Inventory         $6,900

     + Contribution Produced units             42,300

                                    Total contribution = 49,200

 Fixed Cost

fixed MO 15,600

fixed S&A 13,000

                                       Total Fixed Cost    28,600

                                     Operating Income 20,600

4 0
3 years ago
______ are used to accumulate and report the effects of each different business activity separately rather than combining the va
Tresset [83]

The accounting item that is used to perform the activity of accumulating and reporting transactional effects is <u>Accounts</u>.

<h3>What is an Account?</h3>
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  • Is shown in ledger books depending on which general activity it relates to.

Accounts allow us to accumulate information related to a business transaction in such a way that all information related to that transaction are located in the same place.

In conclusion, this is an account.

Find out more on accounts at brainly.com/question/24702831.

3 0
1 year ago
AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, th
mixer [17]

Answer:

AccuBlade Castings Inc.

Casting Department

a. Journal Entries for:

1. The materials charged to production:

Debit WIP $350,000

Credit Raw materials $350,000

To record the cost of materials charged to production.

2. The conversion costs charged to production:

Debit WIP $49,600

Credit Direct Labor $19,840

Credit Manufacturing overhead $29,760

3. Debit Machining Department $402,827

Credit WIP $402,827

To record the transfer of completed units to the machining department.

b. Work-in-Process - Casting Department balance = $29,616

c. The change in the costs per equivalent unit for direct materials and conversion from April:

                                                 Direct Materials              Conversion

April cost per equivalent unit        $132.00                    $18.00

May cost per equivalent unit         $139.33                    $19.89

Change in cost per equivalent unit  $7.33 increase       $1.89 increase

The cost per equivalent unit increased in both direct materials and conversion for May when compared to April's.

Explanation:

a) Data and Calculations:

                         Units

Beginning WIP    230

Started             2,500

Transferred     2,530

Ending WIP        200

Equivalent units of production:

                         Units  Direct Materials  Conversion

Transferred  2,530       2,530 (100%)    2,530 (100%)

Ending WIP     200           200 (100%)         88 (44%)

Total equivalent unit    2,730                 2,618  

Cost of production:

                       Direct Materials             Conversion               Total

Beginning WIP$30,360 (230*$132)   $2,484 (230*60%*$18)  $32,844

Started           350,000 (2,500*$140) 49,600 (2,500*$19.44) 399,600

Total costs    $380,360                    $52,084                         $432,444

Cost per equivalent unit:

                                   Direct Materials      Conversion

Total costs                        $380,360            $52,084

Equivalent units                   2,730                 2,618

Cost per equivalent unit   $139.33              $19.89

Allocation of production costs:

                                       Direct Materials                Conversion              Total

Units transferred out  $352,505(2,530*$139.33) $50,322 (2,530*$19.89) $402,827

Ending WIp                      27,866(200*$139.33)        $1,750 (88*$19.89) $29,616

Total costs                  $380,371                             $52,072                    $432,443

7 0
3 years ago
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