Answer:
1) Equal to
2) Efficient
3) Equal to
4) Total
Explanation:
1) Marginal cost pricing is when you price the good equal to the extra cost of producing an extra good, so for example if I am a shoe manufacturer and the cost of producing an extra pair of shoe is $4 and I price the pair of shoe at $4 I am using marginal cost pricing.
2) When the producer is using marginal cost pricing the output produced is efficient as there is no dead weight loss and efficient level of output is produced.
3,4) If I produce 10 pairs of shoes and they cost me $500 then my average total cost for the pair of shoes is 500/10 = $50 and if I keep the price of the shoe at $50 I am using average cost pricing, so average cost pricing is keeping price equal to the average total cost.
COMPLETE QUESTION:
Sarah’s Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size:
(The attachment contains the information)
Answer: 216 mufflers is the best order size.
Explanation:
The attachment contains the calculations and information.
Answer:
$55,379.27
Explanation:
Amount of each payment = Principal / PVIFA
Principal = $300,000
PVIFA (r=6%/2=3%, n=3yrs*2= 6) = 5.41719
Amount of each payment = $300,000 / 5.41719
Amount of each payment = $55379.2649
Amount of each payment = $55,379.27
Answer:
Total money= 1102.5+2100+3000= $6202.5
Explanation:
Giving the following information:
Your employer has agreed to place year-end deposits of $1,000, $2,000 and $3,000 into your retirement account. The $1,000 deposit will be one year from today, the $2,000 deposit two years from today, and the $3,000 deposit three years from today. If your account earns 5% per year.
We need to use the final value formula:
FV=PV*(1+i)^n
PV= present value
i= interest rate
n= number of years
First deposit will generate interest for 2 years:
FV= 1000*(1.05^2)= $1102.5
Second deposit will generate interest for one year
FV= 2000*(1.05^1)=$2100
The third deposit will not generate interest.
Total money= 1102.5+2100+3000= $6202.5