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2 years ago

Economic efficiency in a competitive market is achieved when

Business

2 answers:

Ludmilka [50]2 years ago

6 0

Answer:

when you operate with your own products

Explanation:

economically doing well on business and people loving the pricws

sergiy2304 [10]2 years ago

6 0

Answer:

The correct answer is letter "A": the marginal benefit equals the marginal cost from the last unit sold.

Explanation:

Economic efficiency is achieved if resources are distributed optimally to reduce waste and best serve each person in that economy. In economic technical terms, there will be the same level of marginal benefit and marginal cost. When Economic Efficiency exists, the cost of manufactured goods is the lowest possible and any change would affect any given consumer in the market.

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Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy camer

Viefleur [7K]

Answer:

Product cost are cost incurred in the manufacturing of a product while period cost are cost incurred for a period irrespective of the manufacturing activity.

1. Depreciation on salespersons cars.

Classification: Period cost

2. Rent on equipment used in the factory.

Classification: Product cost

3. Lubricants used for machine maintenance.

Classification: Product cost

4. Salaries of personnel who work in the finished goods warehouse.

Classification: Period cost

5. Soap and paper towels used by factory workers at the end of a shift.

Classification: Product cost

6. Factory supervisors salaries.

Classification: Product cost

7. Heat, water, and power consumed in the factory.

Classification: Product cost

8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)

Classification: Period cost

9. Advertising costs.

Classification: Period cost

10. Workers compensation insurance for factory employees.

Classification: Product cost

11. Depreciation on chairs and tables in the factory lunchroom.

Classification: Product cost

12. The wages of the receptionist in the administrative offices.

Classification: Period cost

13. Cost of leasing the corporate jet used by the company as executives.

Classification: Period cost

14. The cost of renting rooms at a Florida resort for the annual sales conference.

Classification: Period cost

15. The cost of packaging the company as product.

Classification: Product cost

3 0

2 years ago

has a standard of 2 direct labor hours per unit. The standard wage rate of each worker is $32.50 per hour. In July, the company

ikadub [295]

Answer:

$130 Favourable

Explanation:

Given the above information,

Standard hours = 2 × 4770 = 9,540

Actual hours = 8,940

Standard rate = $32.50

Then, Direct labor efficiency variance is computed as

= ( Standard hours allowed for production - Actual hours taken) × Standard rate per direct labor hour

= [(2 × 4,770) - 8,940] × $32.50

= [9,540 - 8,940] × $32.50

= 600 × $32.50

= $130 Favourable

6 0

2 years ago

Below are Company Y's financial statements:

kow [346]

Answer:

Company Y

The external financial needed is:

= $1,290.

Explanation:

a) Data and Calculations:

Company Y's financial statements:

Income Statement

Sales $7,900

Costs 5,500

Taxable income $2,400

Taxes (25%) 600

Net income $1,800

Balance Sheet

Current assets $3,900

Fixed assets 8,600

Total assets $12,500

Current liabilities $2,100

Long-term debt 3,700

Equity 6,700

Total liab. & equity $12,500

Projected Income Statement:

Sales $9,085 ($7,900 * 1.15)

Costs 6,325 ($5,500 * 1.15)

Taxable income $2,760

Taxes (25%) 690

Net income $2,070

Dividends = 40% $828

Retained earnings $1,242

Projected Balance Sheet

Current assets $4,485 ($3,900 * 1.15)

Fixed assets 9,890 ($8,600 * 1.15)

Total assets $14,375

Current liabilities $2,415 ($2,100 * 1.15)

Long-term debt 4,018 ($14,375 - 2,415 - 7,942)

Equity 7,942 ($6,700 + $1,242)

Total liab. & equity $14,375

Working capital = $2,070 ($4,485 - $2,415)

Capital expenditure = $1,290 ($9,890 - 8,600)

External financing needed = Net income minus (working capital plus capital expenditure)

= $2,070 - ($2,070 + 1,290)

= $1,290

7 0

3 years ago

Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati

Tom [10]

Answer:

Following are the solution to the given points:

Explanation:

For point a:

After-tax profit for each country.

For Country X:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\$

$Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000$

For Country Y:

$Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000\\\\$

$Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,200,000\\\\Tax\ [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000$

For point b:

For Country X:

Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].

3 0

3 years ago

Hache Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departmen

Greeley [361]

Answer:

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797

Explanation:

Calculation of Equivalent Units of Production

<u>Materials </u>

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 50%) = 925

Total Equivalent Units of Production for Materials = 6,725

<u>Conversion</u>

Units transferred to the next department (5,800 × 100%) = 5,800

Units in ending Work In process (1,850 × 20%) = 370

Total Equivalent Units of Production for Conversion Costs = 6,170

Calculation of Cost per Equivalent units of Production

Materials

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,700 + $ 91,000) ÷ 6,725

= $14.825

Cost per equivalent unit = Total Material Cost ÷ Total Equivalent Units of Production for Materials

= ($ 8,500 + $ 126,300) ÷ 6,170

= $21.848

Calculation of cost of ending work in process inventory

Materials ( 925 × $14.825) = $13,713.12

Conversion Cost ( 370 × $21.848) = $8,083.76

Total = $21,796.88

Thus,

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: d) $21,797.

5 0

3 years ago