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Triss [41]
3 years ago
5

A firm has a production function satisfying constant returns to scale. Their cost of producing 100 units of their product is $20

0,000.00. What is their cost of producing 500 units?
Business
2 answers:
umka21 [38]3 years ago
8 0

Answer:

1,000,000

Explanation:

As there are constant returns to scale the cost to produce a greater output will grow following a linear fucntion thus,

if 100 units units are produced at a cost of 200,000 dolllars

then 500 units will be produced five times that amount:

200,000  x 500/100 = 200,000 x 5 = 1,000,000

The total cost for 500 units will be a million dollars

Ber [7]3 years ago
8 0

Answer:

Constant returns to scale is when a proportional increase in inputs such as capital and labour cause the same proportional increase in output. Constant returns to scale occurs when an increase in number of inputs leads to an equivalent increase in the output.

From the question, to determine the cost of producing 500 units;

The cost of producing 100 units = $200,000

The cost of producing 500 units = ?

= ($200,000 × 500) ÷ 100

= $100,000,000 ÷ 100

= $1,000,000

The cost of producing 500 units = $1,000,000

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The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of
steposvetlana [31]

Answer:

Volume variance= $1,800 unfavorable

Explanation:

Giving the following information:

Standard fixed overhead per direct labor hour $3​

Standard direct labor hours per unit 0.75​

Budgeted production 3100​

Budgeted fixed overhead costs $6975.00​ ​ ​

Actual production in units 3900​

Actual fixed overhead costs incurred $2200.00​

To calculate the fixed overhead volume variance, we need to use the following formula:

Volume variance= budgeted fixed overhead - fixed overhead applied

Volume variance= 6,975 - [3*(3,900*0.75)]

Volume variance= 6,975 - 8,775= $1,800 unfavorable

8 0
2 years ago
Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,
kolezko [41]

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

         Cr Cash 10,000

         Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date                         Cash flow     Discount         Balance

January 2, 2021       -$10,000                             $10,515.42

January 2, 2022       $1,000        $171.81            $10,343.61

January 2, 2023       $1,000        $171.81             $10,171.80    

January 2, 2024       $11,000       $171.80                  $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

      Cr Interest revenue 1,171.81

7 0
2 years ago
USA Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balan
n200080 [17]

Answer:

1. Cash flow from operations: F (financial).

2. Number of reports of mishandled or lost baggage: C (customer).

3. Percentage of on-time departures: C (customer).

4. On-time flight percentage: C (customer).

5. Percentage of ground crew trained: I (innovation and growth).

6. Return on investment: F (financial).

7. Market value: F (financial).

8. Accidents or safety incidents per mile flown: P (internal process).

9. Customer complaints: C (customer).

10. Flight attendant training sessions attended: I (innovation and growth).

11. Time airplane is on ground between flights: P (internal process).

12. Airplane miles per gallon of fuel: P (internal process).

13. Revenue per seat: F (financial).

14.Cost of leasing airplanes: F (financial).

Explanation:

The performance measures associated with an airline (USA) business are;

1. Customer (C): this includes all the passengers or clients who have done business with the airline company in the past or in the future. It gives full details about everything pertaining to the clients or customers.

2. Financial (F): this is a measure of all the revenues and expenses associated with the successful running of the airline business.

3. Innovation and growth (I): this is a measure of the manpower or labor, equipments, welfare and training used to ensure the business continues to run smoothly, effectively and efficiently.

4. Internal process (P): it involves all of the strategic decisions, policies, rules and regulations formulated by the executive management in order to enhance the smooth operations of the airline business.

5 0
3 years ago
A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do
maxonik [38]

Answer:

FALSE

Explanation:

It is False that the difference between operations and projects is that operations end when their objectives have been reached, whereas projects do not.

The reverse is true because projects are time-bound and they come to an end when their objectives have been achieved, but company operations are expected to continue as a going concern.

A project is an activity to meet the creation of a unique product or service, an thereafter terminates while operations are day to day routine activities that are expected to continue

3 0
3 years ago
The graph shows unemployment rates in the United States in recent years.
S_A_V [24]

The correct answer is C. The United States suffered an economic downturn starting in 2009.

Explanation:

The graph shows the percentage of unemployment in the U.S. from 2006 to 2012. In this, you can see the unemployment rate was between 4% and 5% during 2006, 2007 and 2008; however, after this year the rate suddenly increased. Indeed in 2009, the rate was 6% and in 2010 it was 10%, which is evidently higher than in previous years. This situation suggests there was an economic recession or downturn that began in 2009 and continued during the following years, this explains why the number of unemployed people increased as an economical recession usually leads to fewer jobs. Thus, the most accurate statement is "The United States suffered an economic downturn starting in 2009".

6 0
3 years ago
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