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Anna35 [415]
3 years ago
13

A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price

of wheat is $2 a bushel, the wage rate is $10, the farmer employs five workers and the marginal product of the fifth worker is 3 bushels. What would you advise this farmer to do?
Business
1 answer:
const2013 [10]3 years ago
7 0

Answer:

Reduce the labor employed.

Explanation:

Generally the profit maximizing level of activity is where the marginal revenue product of labor is equal to or greater than the wage rate paid. This means that the 5th worker is actually not generating any positive revenue for the farmer as its contribution to revenue is,

Total contribution = Marginal product * price = 3 * 2 = $6

Where as wage paid is $10 thus it gives a contribution of 6-10 = -$4.

Thus the farmer is advised to reduce labor employed.

Hope this helps.

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Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on
lozanna [386]

Answer:

Turnover Company

The net income of Turnover will increase by $500,000.

Explanation:

a) Data and Calculations:

Turner Company's shareholding in ICA = 10%

ICA pays dividend totalling $5 million

Turner's share of dividend = $500,000 ($5 million * 10%)

b) This is not based on equity accounting.  Instead, the investment will be reported at fair value.  Equity accounting method will be applied in recording Turner's investments in ICA Company, if the ownership interest is valued at 20–50% of the stock.

c) The $500,000 dividends received from ICA Company will be reported in the Income Statement of Turner Company as other income, unless Turner ordinarily buys and sells stocks.  The 10% shareholding does not amount to significant control or influence for the accounts of Turner and ICA to be consolidated.

6 0
3 years ago
Need help with this question asap plz
wariber [46]

The correct answer is the second one: It made it illegal to imprison people unless they were convicted of a crime.

I hope this helps.

5 0
3 years ago
A random sample of 30 lunch orders at noodles and company showed a mean bill of $10.36 with a standard deviation of $5.31. find
Paladinen [302]

The formula for calculating the Confidence Interval is as follows:

Confidence Interval = x +- (z*s)/√N

Where:

x = mean = 10.36

z = taken from standard normal distribution table based on 95% confidence level = 1.96

s = standard deviation = 5.31

N = sample size = 30

Substituting know values on the equation:

Confidence Interval = 10.36 +- ( 1.96 * 5.31) / √30

Confidence Interval = 8.46 and 12.26

Hence the bill of lunch orders ranges from 8.46 to 12.26.

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4 0
3 years ago
Which of the following are NOT needed to calculate cost of goods sold
jenyasd209 [6]
Option c is correct.
5 0
3 years ago
Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann
krok68 [10]

Answer:

$10,000

Explanation:

We need to find the segment margin of the deparment, which is equal to annual contribution margin minus avoidable fixed costs:

Wallen Corporation

Annual contribution margin            $80,000

Annual fixed costs                           $160,000

Unavoidable fixed costs                 $90,000

Avoidable fixed costs                     $70,000

Segment Margin  = Annual contribution margin - avoidable fixed costs

                             = $80,000 - $70,000

                             = $10,000

Therefore, if the company eliminated this department, it would have a financial advantage of $10,000, equivalent to the deparment's current segment margin.

                     

5 0
3 years ago
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