Answer:<em><u>Crane should buy the wicket as it result in saving of $ 1100</u></em>
Explanation:
Given:
Quantity = 5,100
Price = $16
Variable cost = $14 per unit
Fixed costs = $8 per unit
Buying Cost = 5100 * 16 = $ 81,600
Making Cost = Variable Costs + Avoidable Fixed Costs
Making Cost = 14 * 5100 + (8 - 5) * 5100 = $ 86,700
Crane should buy the wicket as it result in saving of $ 1100 ($86,700 - $81,600).
The four core principles of economics that is most relevant for each aspects of that decision are:
- scarcity
- supply and demand
- costs and benefits
- incentives
<h3>What are the
core principles of economics?</h3>
Scarcity can be regarded as the economic concept which serves as the basic fact of life that there exists only a finite amount of human and nonhuman resources .
Supply and demand serves as the economic model of price determination that is bee used in the market and it seen in a competitive market, the unit price for a particular good, .
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Answer:
Fair price =$635.23
Explanation:
<em>Th fair price that he should be willing to pay is the present value of the $1000 expected in 5 years time.</em>
<em>Present value (PV) is the worth today if a future amount is discounted at a particular rate of interest.</em>
PV = FV × (1+r)^(-n)
PV - present value = ?
FV -Future value - 1000,
r- discount rate - 9.5%,
n - future date - 5
PV = 1,000 × (1.0950^(-5)
PV = 1,000 × 0.6352
PV =635.2276653
Fair price =$635.23
Answer:
The budgeted selling expenses for the month of July is $220,000
Explanation:
The computation of the budgeted selling expenses are shown below:
= Sales commission + sales manager's salary + shipping expenses + miscellaneous selling expenses
where,
Sales commission = Sales × commission percentage
= $400,000 × 4%
= $16,000
Shipping expenses = Sales × expenses percentage
= $400,000 × 1%
= $4,000
The other expenses amount would remain the same
Now put these values to the above formula
So, the value would equal to
= $16,000 + $190,000 + $4,000 + $10,000
= $220,000
Answer:
The junk-food ban will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price
Explanation: