Answer:
The weighted average contribution margin per unit is $131.32.
Explanation:
The total combined sales of both the products equal, 6300 + 3900 = 10200
The weightage of each product in sales mix is,
Silver = 6300 / 10200
Gold = 3900 / 10200
The weighted average contribution margin can be calculated by multiplying the per unit contribution of each product with their respective weights.
Weighted average unit CM = 6300/10200 * 95 + 3900/10200 * 190
Weighted average unit CM = $131.32
The firm should produce more output to maximize its profit. In a perfectly competitive industry, firms will have marginal revenue equal to price. Therefore, the marginal revenue is $25.
In macroeconomics, an industry is a branch of an economic system that produces a closely-related set of raw materials, items, or offerings. For instance, one would possibly refer to the wooden enterprise or to the insurance industry. While comparing a single institution or agency, its dominant supply of revenue is generally used by industry classifications to categorize it within a particular enterprise. As an example, the global widespread industrial classification (ISIC) – used at once or thru derived classifications for the professional data of most countries internationally – classifies "statistical devices" via the "monetary activity wherein they especially have interaction". Enterprise is then defined as a "set of statistical gadgets which can be classified into the identical ISIC category". however, a single business need not belong just to one enterprise, which includes when a big business (regularly known as a conglomerate) diversifies throughout separate industries.
Learn more about industry here
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In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28,its marginal cost is $20, and its average variable cost is $20. Determine whether the following statements are true or false:
Prices play a huge role in the free market because they are used to appropriately place goods within the economy. They are used to determine what price point objects should be where and what market will have the established value and pay the price of the good. Price helps serve as a value measurement in a free market.
Answer:
Contribution margin = $16
Explanation:
Contribution is the difference between the selling price and the variable cost.
Contribution margin = (Sales - variable cost )
Variable cost = Variable manufacturing + Variable selling cost
Variable cost = 18 + (15%× 40) = 24
Contribution margin = 40 - 24 = $16
Contribution margin = $16
