Answer:
a) perfectly competitive market
b) perfectly competitive market
c) 5 workers
d) 46 units
e) Profit of $73
Explanation:
a) The firm sells its output at the present market price, the firm has control of the market prices therefore this is a perfectly competitive market.
b) The firm can hire all of the workers it wants at a market wage rate, this means that the labor market is also perfectly competitive.
c) We have to first calculate the marginal revenue product (MRP) of each worker. The marginal revenue product of the last worker must be equals his wage rate in order to maximize profits. Hiring new workers as every additional employee adds less to the total revenue than to the costs of the firm.
MRP = Marginal product × Price.
Price = $3
Number of Total Marginal Marginal Revenue
Employees Output Product (MP) Product $ (MRP = MP * P)
0 0
1 14 14 52
2 26 12 36
3 35 9 27
4 42 7 21
5 46 4 12
6 48 2 6
The MRP of each of the first 5 employees is higher than their wage rate ($11). The firm should hire 5 workers to maximize profit
d) The output of 5 workers is 46 units
e) Fixed cost = $10
Variable cost = number of workers × wage rate = 5 × $11 = $55
Revenue = output × price per unit = 46 × $3 = $138
Profit = Revenue - variable cost - fixed cost = $138 - $55 - $10 = $73
Answer:
Cost of Goods Sold will decrease by $2,679 after proration.
Explanation:
Under-applied or over applied overhead:
= Overhead incurred - Overhead applied
= $76,000 - $79,700
= (-$3,700)
Therefore, the Cost of Goods Sold after the proration:
= (over applied overhead × Overhead applied to COGS) ÷ Total overhead applied to cost of goods sold and finished goods
= ($3,700 × $57,700) ÷ ($57,700 + $22,000)
= $213,490,000 ÷ $79,700
= $2,679
Hence, the Cost of Goods Sold will decrease by $2,679 after proration.
Answer:
SITE A
Explanation:
Given :
FACTOR___ WEIGHT _SITE A_ SITE B _SITE C
Labor Cost __ 0.25 _____92 ____82____ 84
Curr Stability _ 0.35 _____75 ___ 85____ 88
Prox Market __ 0.30 ____ 80 ____50 ___ 60
Taxes _______ 0.10 _____69 ___ 88 ___ 91
SITE A:
(0.25 * 92) + (0.35*75) + (0.30*80) + (0.10*69) = 80.15
SITE B :
(0.25 * 82) + (0.35*85) + (0.30*50) + (0.10*88) = 74.05
SITE C :
(0.25 * 84) + (0.35*88) + (0.30*60) + (0.10*91) = 78.90
Using the weighed factor model;
The based site for locating the facility is SITE A as it has the highest weighted value
<span>The answer to your question is Annual Compounding</span>
Answer:
The answer is: Income statement
Explanation:
As she wants to get information on sales and costs, the Income statement is the statement that she should looking for. With the Balance sheet statement, it only shows information on the financial position reporting the firm's assets, liabilities and owner's equity at a specific point in time rather than the sales and costs firgures during the reporting period.
Furthermore, she should opt for Income statement rather than the common-size income statement because the common-size income statement hardly illustrates any trend during the recent years/ reporting periods, instead, it is only shown each revenue and cost items as percentage of total sales in a specific period.
In the income statement, there should be enough information for the new CFO to find trends on revenues and costs (if any) because the revenue and cost items is detailed enough and at least it should be given the comparision between sales & costs of the reporting period versus the firgures of the previous reporting period.
