Answer:
The answer is option A) The short run recommendation for a monopolistic firm is to remain at the current output level
Explanation:
In the short run, monopolistic firms could record losses but still continue to run in anticipation of a sustainable profit in the long run.
A self-employed profit-maximizing consultant specializing in monopolies understands that the short run losses experienced in a monopoly is also an advantage in that it reduces the participation of more players in the same industry/ market segment.
The best recommendation would be to remain at the current output level during the short run to cut losses, sustain patronage and then develop a long term strategy that will guarantee profitability in the long run.
Answer:
Predetermined manufacturing overhead rate= $6.875 per machine-hour
Explanation:
Giving the following information:
The estimated manufacturing overhead costs are $275,000 and an estimated 40,000 machine hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000/40,000
Predetermined manufacturing overhead rate= $6.875 per machine-hour
Answer:
b. $44,500
Explanation:
Particulars Amount
Direct material used $12,500
Direct labor used $26,500
Total factory overhead <u>$5,500</u>
Total Manufacturing Cost <u>$44,500</u>
Answer:
Rate of return is 16.11%
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
$54 = $6 / ( Rate or return - 5% )
Rate or return - 0.05 = $6 / $54
Rate or return - 0.05 = 0.1111
Rate or return = 0.05 + 0.1111
Rate or return = 01611
Rate or return = 16.11%
Answer:
Step Activities
1 Determine how expensive a car you can afford.
2. Identify the car that meets your needs and wants in terms of size, styling, performance, and safety and obtain online quotes for three target cars.
3. Negotiate the lowest price by getting bids from at least three dealers and hold firm to your target price when selecting the source of your car.
4. Change the oil, rotate the tires, and replace the windshield wipers as needed.
Explanation:
The steps above are arranged to ensure that the next step follows from the last sequentially. The sequence started with making purchase decisions to maintenance activities after the purchase of a car had been completed successfully.
