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Assoli18 [71]
3 years ago
9

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume

that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in $0.10 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. What is the MRP? What is the MRC? Should the firm add this delivery vehicles?
Business
1 answer:
Alinara [238K]3 years ago
3 0

Answer:

Marginal Revenue Product=150

Marginal Resource Cost= 100

Explanation:

Marginal revenue product (MRP) is the change in total revenue that results from a unit change of some type of variable input.

Marginal Revenue Product= Revenue Change

/Additional Input

Marginal resource cost (MRC) is the change in total cost that results from a unit change of some type of variable input.

Marginal Resource Cost= Cost Change

/Additional Input

In this situation we must calculate the change of revenues (MRP) and cost (MRC) when we add a new vehicle.  

We are increasing our delivery fleet in 1 unit

First calculate the change in total revenue

Total revenue= 1,500 packages * $0.10 in revenue=150

Marginal Revenue Product=$150/1=150

The Cost change is $100,

so Marginal Resource Cost= $100/1=100

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Answer:

weighted-average contribution margin= $4.7

Explanation:

Giving the following information:

Hurricane lamps account for 70 percent of the units sold, while the flashlights account for the remaining 30 percent of unit sales. The unit sales price of the lamps is $9.00, and the unit variable cost is $4.00. The unit sales price of the flashlights is $7.00, and the unit variable cost is $3.00.

<u>To calculate the weighted-average contribution margin, we need to calculate first the weighted-average selling price and weighted average variable cost for each product.</u>

weighted average selling price= (selling price* weighted sales participation)

weighted average selling price= (0.7*9 + 0.3*7)= $8.4

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (0.7*4 + 0.3*3)= 3.7

<u>Now, we can calculate the weighted average contribution margin:</u>

weighted-average contribution margin= 8.4 - 3.7= $4.7

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Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2020. During its first year, the following transactions occurred:
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Answer:

Explanation:

Journal entry is a record of transaction in their respective accounts using the debit and credit system. Debit entry represents an increase and credit a decrease.

S / NO             Particulars       Debit          Credit  

 1                      Cash                200,000

                       Share stock                               200,000

2                       Inventory             483,000

                   Account payable                             483,000

3.                 Account receivable   675,000

                              Sales                                       675,000

                      Cost of goods             405,000

                         Inventory                                       405,000

4                            Cash                        562,000

                     Account receivable                              562,000

5                    Account payable               431,000

                            Cash                                                  431,000

6                       Motor Vehicle                 39,000

                               Cash                                                  39,000

7                            Rent                        25200

                     Prepaid rent                       2100

                           Cash                                                         27300

8                    Operating Expenses      20,000

                              Cash                                                       18,000

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10                  Dividends payable                   8500

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3 0
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