Answer:
Yes, because they will net $300 per week
Explanation:
According to the marginal principle, production can be increased if marginal revenue would exceed marginal cost. It means that the venture would be profitable
Marginal cost is the increase in cost as a result of increasing output by one unit.
total marginal cost = 1000 + 50 + 150 = 1200
Marginal revenue is the increase in revenue as a result of increasing output by one unit.
Marginal revenue exceeds marginal cost by (1500 - 1200) 300. Thus, hours of operation can be increased
Answer:
If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?
Firms will devote more variable inputs in the production of this good.
Explanation:
When there is more variable inputs in the production of goods it gives room to have more substitute goods, hence; increases patronage.
Answer:
C
Explanation:
Material price variance
Actual cost of materials =$ 6,888
Standard cost of material = 8200*0.8 =$6560
Variance ( Difference between the actual and budgeted price for materials)
= (6888-6560)
= $328 unfavorable variance.
Material quantity variance
Standard material per unit = 8 kilogram
Actual units produced = 870
Standard material = 6960
Actual material used = 7150
Material quantity variance = Difference in quantity of material used multiplied by the standard cost of material (7150-6960)*0.8
=$ 152 unfavorable variance
The two variances are unfavorable as they exceeded the budget
Just in Time <span>manufacturing philosophy emphasizes quality and zero defects.
Companies who held this pilosophy usually only made their products after they receive an accurate number of orders.
By doing this, they will cut out their inventories and eliminate unnecessary expenses for their production cost. Famous company who implement this philosophy: Toyota.</span>