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3 years ago

Let's try to determine the cost function for another company like ABC who makes sausages. Assume costs are as follows:

Business

1 answer:

baherus [9]3 years ago

6 0

Answer:

$3.30 per pound

Explanation:

The computation of the variable cost portion of their cost formula is shown below:

= Product cost + wages + utilities cost

= $1.15 per pound + $1.95 per pound + $0.20 per pound

= $3.30 per pound

The above cost i.e product cost, wages, and the utilities cost are terms as the variable cost portion so all these three would be considered and others are ignored

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Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calcula

Tamiku [17]

Answer:

Unitary elastic

Elasticity of demand is unitary elastic because the absolute value of elasticity is equal to 1.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (25 - 15) / 25 = 0.4 × 100 = 40%

Percentage change in price = ($5 - $7) / $5 = 0.4 × 100 = 40%

Elasticity of demand = 40% / 40% = 1

If coefficient of elasticity is equal to 1, demand is unit elastic. It means that a change in price has an equal efect on the quantity demanded. Quantity demanded has an equal and proportional change to changes in price.

I hope my answer helps you

3 0

3 years ago

Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds pe

kondor19780726 [428]

Answer:

Debit Raw Materials Inventory with $72,000; Credit Direct materials Cost Variance with 28,200, and Credit Accounts Payable with $43,800.

Explanation:

Direct materials purchase on account = $43,800

Standard cost of direct materials = 12,000 * $6 = $72,000

Direct materials cost variance = $72,000 - $43,800 = $28,200

The journal entries will therefore be as follows:

Details Dr ($) Cr ($)

Raw Materials Inventory 72,000

Direct materials Cost Variance 28,200

Accounts Payable 43,800

To record direct materials cost and variance.

7 0

3 years ago

You just sold 700 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You

Nesterboy [21]

Answer:

The correct answer is 3584 (Loss).

Explanation:

According tot he scenario, the given data are as follows:

Purchase value = $39.20

Sale value = $34.08

Total share = 700 share

So, we can calculate the total gain by using following formula:

Total gain = (Sale value - Purchase value) × Total share

= ( $34.08 - $39.20) × 700

= -3584 ( Negative shows Loss)

3 0

3 years ago

For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth o

Tanzania [10]

Answer:

3. retained earnings.

Explanation:

When a company earns profit, taxes are deducted to find the net profit or net earnings. From these, it pays dividends at a certain dividend payout ratio; which is usually dividends/ net profit. Whatever remains is reinvested back into the company for funding potential profitable projects and other expansions and are referred to as retained earnings. This gives the retention rate which is basically (1 - payout ratio).

5 0

3 years ago

How will employers respond to an increase in the minimum wage?

kherson [118]

Answer:

Explanation:

Increasing minimum wage increases the cost of hiring labour. As a result, firms would reduce the amount of labour skilled labour employed in order to reduce cost of hiring labour.

Another option, is for firms to hire more skilled labours

4 0

3 years ago