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2 years ago

Economists normally assume that the goal of a firm is to

Business

1 answer:

Elina [12.6K]2 years ago

6 0

Answer:

Profit Maximisation

Explanation:

Profit is the difference between total revenue (receipts) from sale & total cost (expenditure) on production.

Total Revenue = Price x Quantity ; Total Cost = Average Cost x Quantity

Economists study all the producer behaviour, based on assumption that : Goal of firm is Profit Maximisation.

Maximising Profit implies maximising the difference between Total Revenue & Total Cost [ TR - TC] . This further leads to producer equilibrium rule of Marginal Revenue = Marginal Cost [MR = MC] ; i.e additional revenue per unit sold equals additional cost per unit production.

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MC Qu. 97 Bioclean Co. sells a biodegradable... Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has pre

il63 [147K]

Answer: 2,060 units

Explanation:

The Beginning inventory of February is 30% of the sales in February.

The ending inventory in February is 30% of March sales.

February beginning inventory = 30% * 2,000 = 600 units

Ending inventory = 30% * 2,200 = 660 units

Units to be purchased in February = Sales for February + Ending inventory - Beginning units

= 2,000 + 660 - 600

= 2,060 units

7 0

2 years ago

Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 130,000 units of basic, 508,000

katrin [286]

Answer:

the total contribution margin if Bricktan chooses the most profitable sales mix is $27,000,000

Explanation:

It is important to note that the limiting factor identified is the production hours.

Step 1 Calculate Contribution per limiting factor of each product

Basic

1 unit requires 0.1 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $15/0.10

= $150

Classic

1 unit requires 0.125 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $25/0.125

= $200

Deluxe

1 unit requires 0.25 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $55/0.25

= $220

Step 2 Rank the products

1st = Deluxe

2nd = Classic

3rd = Basic

Step 3 Determine the production mix

Product Total hours demanded Balance

Capacity 134,000

Deluxe (230,000×0.25) = 57,500 76,500

Classic (508,000×0.125) = 63,500 13,000

Basic (130,000×0.1) = 13,000 0

Step 4 Calculate total contribution

Deluxe (230,000×$55) = 12,650,000

Classic (508,000×$25) = 12,700,000

Basic (130,000×$15) = 1,650,000

Total = 27,000,000

7 0

3 years ago

After evaluating Null Company’s manufacturing process, management decides to establish standards of 3 hours of direct labor per

docker41 [41]

Answer:

Direct labor rate variance = (SR - AR) $\times$ AH

October = ($15 - $15.20) $\times$ 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25) $\times$ 22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH) $\times$ SR

October = (16,800 - 16,250) $\times$ $15 = 8,250 Favorable

November = (18,000 - 22,000) $\times$ $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

Explanation:

Computing variances for each month

Particulars October November Equation

Total units produced 5,600 units 6,000 units (a)

Standard hour per unit 3 hours 3 hours (b)

Total standard hour SH 16,800 18,000 (c) = (a)*(b)

Total standard cost

of labor @ $15 SR per hour $252,000 $270,000 (d) = (c) * 15

Actual hours used AH 16,250 22,000 (e)

Actual cost $247,000 $335,500 (f)

Actual Rate per hour AR $15.20 $15.25 (g) = (f)/(e)

Using the above information we have

Direct labor rate variance = (SR - AR) $\times$ AH

October = ($15 - $15.20) $\times$ 16,250 = - $3,250 Unfavorable

November = ($15 - $15.25) $\times$ 22,000 = - $5,500 Unfavorable

Direct Labor Efficiency Variance = (SH - AH) $\times$ SR

October = (16,800 - 16,250) $\times$ $15 = 8,250 Favorable

November = (18,000 - 22,000) $\times$ $15 = - $60,000 Unfavorable

Direct Labor Cost Variance = Standard Cost - Actual Cost

October = $252,000 - $247,000 = $5,000 Favorable

November = $270,000 - $335,500 = - $65,500 Unfavorable

8 0

3 years ago

Which statement is most appropriate for the body of a cover message?

garri49 [273]

Answer:

Explanation:

The statement uses an active verb and has clear, concise information that specifically applies to a job rather than a class.

3 0

3 years ago

tock has had returns of 16 percent, 23 percent, 15 percent, −11 percent, 30 percent, and −5 percent over the last six years. Wha

elena-14-01-66 [18.8K]

Answer: arithmetic Average Return =11.33%

Geometric Average Return=10.33%

Explanation:

Returns per year

Year 1 16%

year 2 23%

year 3 15

year 4 -11%

year 5 30 %

year 6 -5%

Total = 68%

Arithmetic Average = Total returns 0f ( year 1 -6) / number of years

= 68%/6 =11.33%

Geometric Average Return is given as

= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1

((1 + 16%) × (1 + (23%)) × (1 + 15%) x (1+ -11%) x (1+30%) x (1+ -5%))^1/6 - 1

((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x (0.95)) ^1/6

((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x 0.95)) ^1/6 -1

(1.8035073 )^1/6 - 1

= 1.10328 -1 = 0.10328 x 100 = 10.328% =10.33%

3 0

3 years ago