Answer:
Following are the solution to this question:
Explanation:
In point a:
Journal Entry :
Account Dr Cr.
Goods completed 
Processing work
Complete total labour costs
In point b:
Uncompleted jobs cost:
Answer:
-0.33
Explanation:
The calculation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 80 units - 100 units
= -20 units
And, the average of quantity demanded would be
= (80 units + 100 units) ÷ 2
= 90 units
Change in price is
= P2 - P1
= $2 - $1
= 1
And, the average of the price is
= ($2 + $1) ÷ 2
= 1.5
So, after solving this, the price elasticity of demand is -0.33
Answer:
a) The volume of output at which both the locations have the same profit is 140
Explanation:
We are looking for the quantity produced that give us the same profit.
First we have to get the equation of profit in both location.
Profit function
P(x) =Revenue- Total cost P(x) =(Px * Q)-(FC + vc*Q)
Where
FC=Fixed cost
vc=unitary variable cos
Q=produce quantity
Px=Price
Q=produce quantity
<u>Bonham Profit</u>
P(x) =(Px * Q)-(FC + vc*Q)
P(x) =(29000 * Q)-(820000 + 13000*Q)
<u>McKinney Profit</u>
P(x) =(29000 * Q)-(960000 + 12000*Q)
To find the Q where both profit are equal
(29000 * Q)-(820000 + 13000*Q)=(29000 * Q)-(960000 + 12000*Q)
29000 * Q-820000 -13000*Q=29000 * Q-960000 - 12000*Q
We put all the numbers multiple by Q in the same term
29000 * Q-29000* Q -13000*Q - 12000*Q=820000 -960000
-1000*Q=-140000
Q=140
