Answer:
Effect on income= -$2,100
Explanation:
Giving the following information:
Contribution margin $ 98
Increase in variable cost= $5
Increase in sales= 300 units
<u>To determine the effect on income, we need to use the following formula:</u>
Effect on income= increase in contribution margin for new sales - increase in variable costs
Effect on income= 300*93 - 6,000*5
Effect on income= -$2,100
Fixed cost per mile 0.32 =(1600+1200+360+40)/10000.
Kristen Lu purchased a second user automobile for 8,000 at the start of last year and incurred the subsequent operatingcosts:8,000atthebeginningoflastyearandincurredthefollowingoperatingcosts ($8,000 ÷5 years) Insurance Garage rent Automobile tax and license Variable operating cost$ 1.600 $ 1.200 $ 360 $ 40 $ 0.14 per mile$The variable expense consists of gasoline, oil, tires, maintenance, and repairs. therefore the annual straight-line depreciation is$1,600.
The car is kept in a very garage for a monthly fee. Kristen drove the car 10,000 miles last year. Compute the typical cost per mile of Owning and operating cost of the the car. What costs above are relevant during this decision? Kristen is considering buying an upscale sports car to interchange the car she bought last year.
She would drive the identical number of miles irrespective of which car she owns and would rent the identical parking zone. The sports car's variable operating costs would be roughly identical because of the variable operating costs of her old car.
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Answer:
Casey's opportunity cost of producing 1 kg of potatoes is 5 kg of steak.
Casey's opportunity cost of producing 1 kg of steak is 0.2 kg of potatoes.
Rick's opportunity cost of producing 1 kg of potatoes is 3 kg of steak.
Rick's opportunity cost of producing 1 kg of steak is 0.33 kg of potatoes.
Casey should produce steak while Rick should produce potatoes, since Rick has a comparative advantage in producing potatoes (lower opportunity cost) and Casey has a comparative advantage in producing steak.
As long as the price of steak per kilogram of potatoes is less than 5 kg of steak and more than 3 kg of steak, then both would win. In order for both of them to win is a similarly proportional way, the exchange price should be 4 kg of steak per kg of potatoes.
Answer:
The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.
Explanation:
