Answer: Producer surplus, which is equal to the slope of the supply curve.
Explanation: The producer surplus is represented as the upper portion of the supply curve below the equilibrium price. It is the difference between the amount a producer is willing to sell a given commodity to the actual market price the good was sold at.
The extra benefit which the producer makes as profit when the market price at which the goods was sold at is greater than the amount the producer was willing to sell his goods.
Answer:
We consider the salvage value as an income at the last moment.
Explanation:
The salvage value is the money we can when we sell the fixed assets we use in project.
When we compute the net present value , we consider the salvage value as an income in the last moment. We have to consider the time of the project to bring it at the actual moment. If the rate of discount is different to 0, the actual value of salvage value , will always be smaller that the $45,000
Answer:
both of the above is the answer
Missing information:
Corporation makes 5,700 units of part U13 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $9.60 Direct labor $7.80 Variable manufacturing overhead $10.20 Supervisor's salary $5.90 Depreciation of special equipment $8.80 Allocated general overhead $8.00 An outside supplier has offered to make and sell the part to the company for $25.10 each.
Answer:
annual financial advantage of purchasing part from outside vendor = $73,380
Explanation:
current production costs per unit:
- direct materials $9.60
- direct labor $7.80
- variable manufacturing overhead $10.20
- supervisor's salary $5.90
- depreciation of special equipment $8.80
- allocated general overhead (fixed) $8.00
- total current costs per unit = $50.30
- total costs $50.30 x 5,700 units = $286,710
costs if company decides to purchase the part form outside vendor:
- purchase cost per unit $25.10
- deprecation of special equipment $8.80
- allocated general overhead $8.00
- total costs per unit = $41.90
- total costs $41.90 x 5,700 = $238,830
- - revenue generated from using facility space = $238,830 - $25,500 = $213,330
annual financial advantage of purchasing part from outside vendor = $286,710 - $213,330 = $73,380
Answer:
Demographic segmentation.
Explanation:
Market Segmentation: Marketers tend to create segments of a whole market to identify the required market they will the push their product into. This helps in cutting marketing costs as the marketer will be focusing on specific segment not on the whole market.
- In the current case, marketer is trying to focus on <em>demographic segmentation.</em>
Demographic segmentation: In this segmentation, marketer creates segments regarding age, sex, religion, ethnicity, gender and income.