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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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Ymorist [56]

The question is incomplete, here is the complete question.

"Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers. Also, a survey completed by employees revealed that this particular location’s workers showed extremely high levels of motivation and job satisfaction when compared to other locations in the region. Everyone who works there gave high praise to their manager, Jamal. What else did the surveymost likely reveal about Jamal’s employees?"

A) They reported feeling a lot of pressure to exceed sales goals every month.

B) They demonstrated citizenship behaviour such as volunteering work

C) They recorded higher level of stress than stored with lower sales number

D) They loved Jamal but were not especially committed to the company overall.

Answer:

They demonstrated citizenship behaviour such as volunteering work.

Explanation:

Survey can be described as a method that is used to collect data or information about a particular topic that requires a lot of attention.

Survey as a research method can be used to gather data about the different attitude and behaviour exhibited by each employees in an organization. It is used by the management of a company to effectively determine the amount of efforts that each employee is putting in towards the growth and success of the business.

In the scenario described above, the CEO of shopRite Inc has observed through a recent survey conducted that one of his store locations has recorded a high number of sales, this is as a result of the high rate of efficiency put in by the workers to ensure the success of the business.

5 0
3 years ago
What is the name of the international community of network designers, operators, vendors and researchers concerned with the evol
Shalnov [3]
My apologies that no one has gotten back to you quickly enough. the team is working on answering more questions.
<span>thank you for using Brainly!</span>
5 0
3 years ago
Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, a
igor_vitrenko [27]

Answer:

The present value of cash flows is $ 5,292.13  

Explanation:

The present value is today's equivalence of the company's future cash flow discounted using the 7% interest rate as a discount rate.

Formula for pv of a cash flow=cash flow/(1+r)^n

r is the 7% interest rate

n is the relevant year each cash flow relates to

PV=$1,350/(1+7%)^1+$1550/(1+7%)^2+$1550/(1+7%)^3+$1850/(1+7%)^4=

$ 5,292.13  

6 0
3 years ago
Atlantic Corporation reported the following amounts at the end of the first year of operations: contributed capital $100,000; sa
romanna [79]

Answer:

A) retained earnings $40,000 and expenses $340,000.

Explanation:

Total Assets = Total Equity + Total Liabilities

$300,000 = Total Equity + $160,000

Total Equity = $300,000 - $160,000

Total Equity = $140,000

Now

Total Equity = Contributed Capital + Retained Earning

$140,000 = 100,000 + Retained Earning

Retained Earning = $140,000 - $100,000 = $40,000

Now

Retained Earning = Revenue - Expenses - Dividend paid

$40,0000 = $400,000 - Expenses - $20,000

$40,0000 = $380,000 - Expenses

Expenses = $380,000 - $40,000

Expenses = $340,000

3 0
3 years ago
BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it p
gayaneshka [121]

Complete Question:

BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?

a. 50%

b. 75%

c. 30%

d. 100%

Answer:

a. 50%

Explanation:

In this scenario, BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is 50% of total distribution cost.

In supply chain management, the total distribution cost can be defined as the overall expenses incurred by a manufacturer in the process of delivering finished goods and services from the production stage to the final consumer. The total distribution cost can either be direct or indirect expenses incurred on insurance, handling, storage, shipping, packing and logistics.

<em>Generally, the total amount spent on the movement of goods and services from one location to another, usually accounts for half (50%) of the overall expenses incurred in total distribution cost. </em>

8 0
3 years ago
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