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Sergeeva-Olga [200]
3 years ago
13

Minor Electric has received a special one-time order for 600 light fixtures (units) at $8 per unit. Minor currently produces and

sells 3,000 units at $9.00 each. This level represents 75% of its capacity. Production costs for these units are $9.00 per unit, which includes $6.00 variable cost and $3.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $550 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $850 on the special order, the size of the order would need to be:
Business
1 answer:
chubhunter [2.5K]3 years ago
6 0

Answer:

700 units

Explanation:

Calculation for the what the size of the order will be.

Using this formula

Unit to sell= Total additional fixed costs + desired profit / Contribution margin per unit=

Let plug in the formula

Units to sell=$550 + $850 / (8-6)

Units to sell= $1,400/2

Units to sell=700 units

Therefore the size of the order will be 700 units

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It means to say that the demand of the product is decreasing.  The relationship between the price and demand is one way. It means to say that if the price increases, the demand is higher. In this scenario, the price increases to avoid shortage on the product. If the price is decreasing, it means to say that the demand is decreasing and can possibly cause surplus on the said product. Lowering the price allows consumers to have higher purchasing power and enticing them to purchase such product.
6 0
3 years ago
Green Thumb Nursery has 53,000 shares outstanding at a market price of $63.57 per share. The earnings per share are $3.57. The f
mamaluj [8]

Answer: $3.70

Explanation:

Earnings per share = Net income / Number of shares

Net income = Earnings per share * Number of shares

= 3.57 * 53,000

= $189,210

The number of shares that Green Thumb bought back is:

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= 117,000 / 63.57

= 1,840 shares

After the repurchase the number of shares is:

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= 51,160 shares

New EPS = 189,210 / 51,160

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6 0
3 years ago
Scenario: Fiscal Policy Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no tax
nika2105 [10]

Answer:

less than the government spending multiplier

Explanation:

Given :

Percentage spends  by a households for the increase in the income = 75%

So the mpc = 0.75

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The government multiplier is = $\frac{1}{1-0.75}$

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The tax multiplier is = $\frac{c}{1-c}$

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                                 = 3

Thus we see that the tax multiplier is less than the government spending multiplier.

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The XYZ corporation may sue California for violating the dormant commerce clause. prohibits states from enacting legislation that significantly impedes interstate commerce.

<h3>What is interstate commerce?</h3>
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3 0
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When trying to figure out what your workplace means by business casual, it is best to _____.
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