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3 years ago

Assume that marginal revenue equals rising marginal cost at 100 units of output.

Business

1 answer:

Digiron [165]3 years ago

5 0

Answer:

b) -$700.

Explanation:

The economic profit or loss will be:

economic result = revenue - total cost

<u>Where:</u>

fixed cost + variable cost = total cost

400 + 600 = 1,000

revenue = units x selling price per unit

100 units x $3 = $300

economic result = revenue - total cost = 300 - 1,000 = -700

The company is on the optimal level, marginal revenue = marginal cost at 100 units of output.

But, it is not selling at the correct price. It should sale at a higher price.

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Impact of new vendor with zero opening balance

Marianna [84]

The impact of the vendor with the zero opening balance is to show that the account has been correctly set up.

<h3>What is the vendor opening balance?</h3>

This is the term that is used to refer to the amount of money that is in an account at the particular time that the account is newly opened.

The way that the vendor balance can be gotten is when the opening balances that are in a new year are carried forwards and the customers are done. In order to track this, the code that is to be used is F. 07.

The opening balance is what would have to be brought forward at the end of an accounting period and it is usually what the vendor would have to use as they try to keep a track of the cash flow that is in their account.

Hence we would say that the impact of the new vendor with this balance that is 0 is to help to determine how correct the set up of the account has been done.

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1 year ago

Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value o

lorasvet [3.4K]

Answer:

Statement a. is correct.

Explanation:

The effective annual rate is always higher than the nominal interest rate, as the formula is clear for any number of periods, for any interest rate:

Effective Annual Rate of return = $(1 + \frac{i}{n})^n - 1$

Further if we calculate the present value of annuity due and ordinary annuity assuming 6 % interest rate, then:

Present value of annuity due =

$(1 + 0.06) \times 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= 1.06 $\times$ $400.95

= $425.0089

Present value of ordinary annuity = $150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= $150 $\times$ 2.6730

= $400.95

Therefore, value of annuity due is more than value of ordinary annuity.

Statement a. is correct.

5 0

3 years ago

Adams Company sells a product whose contribution margin is $10 and selling price is $25.

Karolina [17]

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point = 100 units

solution

we get here Break even point that is

Break even point = $\frac{fix\ cost}{contribution\ margin}$ ...........1

Break even point = $\frac{500}{10}$

Break even point = 50 units

but we have given break-even point is 100 units

so answer is b) False

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3 years ago

Ryan is the manager of home repairs inc., a company that provides a wide range of repair and maintenance services. he claims tha

blsea [12.9K]

This scenario describes the company's <u>"Core competencies".</u>

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3 years ago

Kenneth is a stock trader whose main duty is to advise companies on what stock to buy or sell. What task my Kenneth perform as a

solniwko [45]

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<h3>Who is a stock trader?</h3>

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2 years ago