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gavmur [86]
3 years ago
11

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i

n rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to
Business
1 answer:
Molodets [167]3 years ago
5 0

Answer:

The firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)

Explanation:

Normal profit equals zero economic profit or when total revenue equals

the addition of explicit cost and Implicit cost. Implicit cost is the opportunity cost.

Explicit cost = $200,000 + $75,000 + $30,000 + $20,000 + $35,000

=$360,000

Implicit cost is $90,000

Total revenue is $360,000

Normal profit = $360,000 - ($360,000 + $90,000)

$360,000 - $450,000

-$90,000.

This means the firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)

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Consider consecutive processes A-B-C, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units
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Answer:

The operation manager would want the inventory in front of process A based on the lean system.

Explanation:

To fully understand the basis on which we chose the answer, we need to define what a lean system is.

A Lean system refers to a business process plan. More a of business model canvass that meticulously deal with business process plan and development for the purpose of achieving maximum value in production, client and customer satisfaction while still at a reduced cost of running business.  It should also be noted that the lean system is mostly a continuum of existing process and subsequent process progress are mostly determined by the level of integrity attained by the primary design stage.

With the understanding gotten from the definition above, it then obvious from the narrative of the question that the process is consecutive. As such, follows a pattern of A to B to C and thus the level of integrity of process design achieved at A will be passed down to B and C.

This is the more reason why the operation manager will prefer to to want an inventory at A which is the primary point of start.

7 0
3 years ago
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Question Mode Multiple Choice Question In a ______, members of the channel pursue their own goals and maximize their own profits
joja [24]

Answer:

b. Warehouses

c. Stores

4 0
2 years ago
What prevent china from being a more successful exporter​
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Louie discovered that when he dropped the price of his paintings, more people were interested in buying. Louie is experiencing _
vampirchik [111]

Answer:

. the law of demand

Explanation:

The law of demand proclaims that the demand for a product or service is indirectly related to its price. Demand is the quantity of a product that buyers are willing to purchase at a specific price over a period. Should the price of the goods or service increase, its demand decline. A reduction in price causes the demand to rise.

Louise is experiencing the law of demand in play. A drop in price is causing the demand to increase. More customers are finding the reduced price as a good value for their money. The group of customers who could not previously afford the painting can now buy them.

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3 years ago
(c) how many times larger is the u.s. economy than the ethiopian economy?
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To approximate the size of USA in relation to Ethiopia we proceed as follows:
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255
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3 years ago
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