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tiny-mole [99]
3 years ago
6

The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent inc

rease in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer’s inverse demand for your bran muffins is now P = 8 - 1.5Q. If your cost of producing bran muffins is C(Q) = 2.0Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price.
Business
1 answer:
Snowcat [4.5K]3 years ago
3 0

Answer:

Optimal package size = 4 units

Optimal package price = $20

Explanation:

P = 8 - 1.5Q and C(Q) = 2.0Q, MC = 2

To obtain optimal package size, we put

Price is equal to the marginal cost, P = MC

8 - 1.5Q = 2

     1.5Q = 6

          Q = 6 ÷ 1.5

              = 4

Therefore,

Optimal package size = 4 units

Hence,

Optimal package price:

= 0.5[8 - 2] × 4 + 2 × 4

= 12 + 8

= $20

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Answer:

Service

Explanation:

A service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed by the service takers.

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3 years ago
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svetoff [14.1K]

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<span>Manage the technological areas of the company</span>
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During the current year, Elk Company incurred the following direct labor costs: January $40,000 and February $60,000. Elk uses a
Rom4ik [11]

Answer:

January Overheads are <u>under-applied</u> by $2,000.

Explanation:

When,

Actual overheads > Applied overheads we say overheads are under-applied.

Actual overheads < Applied overheads we say overheads are over-applied.

Where,

Applied overheads = Predetermined overhead rate × Actual Activity

Therefore,

Applied overheads (January) = 120% × $40,000

                                                = $48,000

Actual overheads (January) = $50,000.

Conclusion

It can be seen that from the above : Actual overheads : $50,000 > Applied overhead : $48,000, therefore overheads were under-applied.

Amount of under-applied overheads = $50,000 - $48,000

                                                             = $2,000

5 0
3 years ago
A company had the following purchases during its first year of operations: Purchases January: 18 units at $128 February: 28 unit
Archy [21]

Answer:

$8,584

Explanation:

Cost of ending inventory can be calculated by multiplying the remaining units of the given month by their purchase cost in the following month

DATA

Total remaining units n ending inventory = 58 units

10 from January at $128

12 from February at $138

14 from May at $148

12 from September at $158

10 from November at $168

Calculation

January  =  10 x $128       = $1,280

February = 12 x $138        = $1,656

May = 14 x $148                = $2,072

September = 12 x $158     = $1,896

November = 10 x $168      = $1,680

Cost of ending inventory = $8,584

7 0
3 years ago
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