Answer:
A Price: Remain constant, Level of Output: Remain constant, Profits: Increase
Explanation:
The image attached shows the different possible solutions. Options can be eliminated based on the problem statement. First, Options B, C and D can be discounted because of the change in output levels. From the information available, the technological innovation lowers marginal cost and cost of production, however it does not affect production time or output levels.
For the two remaining options, A and E, both are possible scenarios based on the information available.
Option E:
Price decreases, output level remains the same and profit remains the same. While this is a possible outcome, as the business is a monopoly, there is no incentive for the monopolist to reduce prices along with cost as they are already the only player in the market. Especially when the reduction in price does not result in increased profit.
Option A:
Price and output level remain constant, while profit increases. This is the most likely outcome as the business is a monopoly. The owner can take advantage of the reduced costs and sell at the same price to increase profits.
Answer:
Total variance= 391 unfavorable
Explanation:
Giving the following information:
Petrus Framing's cost formula for its supplies cost is $1,920 per month plus $11 per frame. For March, the company planned for activity of 632 frames, but the actual level of activity was 639 frames. The actual supplies cost for the month was $9,340.
Estimated= 1,920 + 639*11= 8,949
Real= 9,340
Total variance= real - estimated
Total variance= 9,340 - 8,949= 391 unfavorable
Answer: $337,869.73
Explanation:
Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.
The APR needs to be made periodic:
= 7.1% / 12
The $1,000 payment is an annuity so this can be calculated as:
= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate
= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%
= $527,297.83
Future value of $210,000
= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰
= $865,167.56
Balloon payment will be:
= 865,167.56 - 527,297.83
= $337,869.73
Answer:
One fifth
Explanation:
Farm subsidies account for approximately <u>one fifth</u> of net agricultural income, making America's farmers among the most heavily subsidized in the world.
American governement provide subsidy to the farmer to incourage farming in United States and help them to hedge the risk out of demand disruption, price fluctuation, climatic changes, etc. In 2019, US governement payout $22 billion subsidy directly to the farmer, which make it highest subsidized farmer in the world. It has encouraged farmer to produce more crops like Corns, Wheat, rice, soyabean, cotton, etc. As new farm bill was passed at US parliament in 2014, however, higher subsidy process have become more complex, which is benefiting only to the rich farmers in United states.
Answer: c.$71 per machine hour
Explanation:
The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.
They forecasted total overhead of $11,597,000 with 164,000 total machine hours.
Since the rate is based on Machine Hours the rate would be,
= Total Forecasted Overhead / Total Forecasted Machine Hours
= 11,597,000 / 164,000
= 70.71
= $71
