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Assoli18 [71]
2 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]2 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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EastWind [94]

Conductors have free electrons and they conduct electrical current very easily.

Good conductors are the following materials: copper, aluminum, gold, and silver. Glass, air, plastic, rubber, and wood on the other hand are insulators .

From the given options, only wet skin (answer D) is a good conductor of electricity.

8 0
3 years ago
Read 2 more answers
Kim’s flowers decided to borrow $26,000 from the bank and use the proceeds to purchase a new delivery vehicle. How should they c
Neko [114]

Based on the fact that Kim's flowers borrowed the money and used it to buy a new delivery vehicle, this business activity should be categorized as both a financing activity and an investing activity.

<h3>What should they classify this business activity as?</h3>

Because Kim's Flowers got the money as a loan, it would be recorded as an inflow for financial activities.

They then used it to purchase a delivery vehicle which is an investment and a capital asset so this will count as an investment activity.

Find out more on classifying business activities at brainly.com/question/14790406

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8 0
1 year ago
Kodera Technology is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,
valina [46]

Answer:

417 units

Explanation:

The formula to compute the break-even point in units is shown below:

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

So, the break-even point in units is

= ($5,000) ÷ ($20 - $8)

= $5,000 ÷ $12

= 417 units

So, the 417 units is to be sold for break-even

6 0
3 years ago
Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this? Group of answer
Minchanka [31]

Answer: c. A bilateral contract

Explanation:

In a bilateral contract, the parties involved promise to both perform duties to the other which will make them both an obligor and an obligee.

An obligor is one who owes a duty to another and the obligee is one who a duty is owed to.

Aaron both owes a duty to sell the boat to Matt as well as being owed by Matt the duty to buy his boat. The same goes for Matt thus making this a bilateral contract.

5 0
3 years ago
Thornbrough Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales Sellin
DaniilM [7]

Answer:

-$5,500

Explanation:

The computation of the overall effect on the company net operating income is as follows:

New Variable cost per unit is

= $44 + $11

= $55

Now the new contribution margin per unit is

= $220 - $55

= $165

New unit Monthly sales is

= 7,000 units + 500 units

= 7,500

Now

New total contribution margin :

= 7,500 units × $165

= $1,237,500

And, the Current total contribution margin is

= 7,000 units × $176

= $1,232,000

So, the change would be

= $1,232,000 - $1,237,500

= -$5,500

6 0
2 years ago
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