Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $
1 answer:
Answer:
Current ratio= 1.3977
Explanation:
Current Ratio:
It is the measure of company ability to pay short term debits of one year. It also tells how company can increase its current assets.
Given:
Total assets=$689,400
Long-term debt=$198,375
Total equity= $364,182
Net fixed assets =$512,100
Sales = $1,021,500
Formula For current Ratio:
Current Ratio=
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Solution :
Amy can only change the number of workers. As the fixed input cannot be changed in the short run, so in the short run, the workers are the variable inputs and the ovens are the fixed inputs.
a). Marginal Product of labor
No. of workers The Output The Marginal product of labor
0 0 ---
1 60 60
2 100 40
3 130 30
4 150 20
5 160 10
The marginal product of the labor is the change in the quantity i.e pizza as Amy hires an additional worker.
1 worker raise the output to 100, so the marginal product of labor of 1 worker is 100 and so on. The marginal product of the labor = change in the output / change in the number of workers.
b).
No. of workers The Output The Fixed cost The Variable cost Total cost
0 0 20 0 20
1 60 20 30 50
2 100 20 60 80
3 130 20 90 110
4 150 20 120 140
5 160 20 150 170
The fixed cost remains the same but the variable cost increases as one more worker is hired.
The law of the diminishing the marginal product of labor is determined by = total output increases at the decreasing rate as we increase the quantity of the labor.
