I believe the answer is: Monopoly
In monopoly, the power to determine the price of a certain type of product fall to the hands of a single company. Which means, every single actions that made by this company would force other firms to conform since they do not possess enough resources to challenge this controlling company.
Answer:
1. $132,800
2. $531,200
3. $1,071,200
Explanation:
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.
Break-even point = Fixed cost / Contribution margin ratio
$487,200 = Fixed cost / 25%
Fixed Cost = $487,200 x 25% = $121,800
1.
Revised Fixed cost = $121,800 + $11,000 = $132,800
2.
New Break-even point = $132,800 / 25% = $531,200
3.
Desired profit = $135,000
Desired revenue = ( Desired profit + Fixed cost ) /Contribution margin ratio = ( $135,000 + 132,800 ) / 25% = 267,800 / 25% = $1,071,200
Answer: Leased employee
Explanation:
Leased employee are employed by a service firm and assigned to work at a business or an organization.
They are contractual employee and paid on the basis of what is deemed in contract.
Answer:
in this problem, we need to calculate Gomez's accounting and economic profit. To do this, let us first classify and list the explicit and implicit costs. Revenue: Sales: $85,000 Explicit costs: Cost of one helper: $18,000 Rent: $8,000 Materials: $24,000 These are the costs that require an outlay of cash. Implicit costs: Opportunity cost of funds invested in equipment: $7,000 Gomez could have invested the funds in another asset that could earn him $7,000 Opportunity cost of working as a potter in his own shop: $20,000 Gomez could have worked as a potter for a competitor that could earn him $20,000. This is the worth of Gomez's skill as a potter. Entrepreneurial talent: $4,000 This is the worth of Gomez's talent in running the business. These costs do not require an outlay of cash. These are the implicit costs. Now, we are ready to calculate both the accounting and economic profit of Gomez. a. Calculate the accounting profit for Gomez's pottery firm. $_ Accounting profit = Total Revenue − Total Explicit Costs Accounting profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 ) Accounting profit = $ 85 , 000 − $ 50 , 000 Accounting profit = $ 35 , 000 The accounting profit is equal to $35,000. b. Now calculate Gomez's economic profit. $_ Economic profit = Total Revenue − Total Explicit and Implicit Costs Economic profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 + $ 7 , 000 + $ 20 , 000 + $ 4 , 000 ) Economic profit = $ 85 , 000 − $ 81 , 000 Economic profit = $ 4 , 000 The economic profit is equal to $4,000.
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
