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Scilla [17]
3 years ago
7

Suppose Nicholas owns a business making Christmas tree ornaments. Currently, he makes 300 ornaments a month. At this level of pr

oduction, each additional ornament takes him 30 minutes to make and costs him $5 in materials. Nicholas makes his ornaments in a small studio that he rents for $300 a month. Nicholas can easily increase or decrease the amount of time he spends making ornaments, and he can easily go to the store to buy additional materials to make the ornaments, but he has a year-long lease on his studio, so he has to pay his monthly rent no matter how many ornaments he produces each month. Nicholas values his time at $10 per hour. Other than his time, the cost of the materials and the rent on his studio, Nicholas has no additional production costs. a At Nicholas's current level of production, what is the marginal cost of making an additional ornament each month?
Business
2 answers:
sladkih [1.3K]3 years ago
6 0

Answer:

it costs him $10 to make an additional ornament each month.

Explanation:

Marginal cost (MC) of production measures the cost of producing one extra unit of a good (Hall, 2019). If Nicholas produces one additional ornament, his marginal cost of production will be calculated as follows:

MC = change in cost / change in quantity

       = ($5 for materials + $5 for labour per half hour) / 301 – 300  units

       = $10 / 1

       = $10

or MC = ($10 for material + $10 for labour for a full hour) / 302 units - 300

          = $20 / 2

          = $10

It costs $10 extra to make an additional ornament in half an hour or 2 in a full hour. The fixed cost of $300 for rent, he has to pay regardless of the amount he produces. MC curve tends to fall first and then rises after diminishing marginal returns occur.  

Aliun [14]3 years ago
5 0

Answer:

Explanation:

a. Marginal Cost (MC) = Cost of raw material + Cost of time

Each additional ornament cost him 30 minutes to make and he value his time at $10 per hour. So for 30 minutes value would be $5.

Materials cost him $5

MC = $5 + ($10/2)

MC = $10

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Noah graduated with his B.A. in early childhood education in December, but public schools are not hiring until spring.
sashaice [31]

Answer:

Job #1

Explanation:

Job #1 is best suited according to Noah's preference. She wants to work near home, have experience working with children and provide educational opportunities. The Job #1 offers her para- educator in kindergarten class. This job is close to her home and has positive school culture. This job provides her opportunity for networking with administrators and the pay is also good. Therefore Noah should select job #1.

7 0
3 years ago
The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the account
vova2212 [387]

Answer:

Wholistic Health Services Co.

Income Statement for the year end February 28, 2019

Service Revenue                           $270,900

Less: Supplies Expense                <u>$3,000    </u>

Gross Income                                  $267,900

Less operating Expenses:

Insurance Expense         $4,000

Depreciation Expense    $9,000

Miscellaneous Expense $6,000

Utilities Expense             $1,760

Rent Expense                  $4,200

Wages Expense              <u>$213,000</u>

                                                       <u>$237,960</u>

Net Income                                    <u>$29,940  </u>    

Explanation:

Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.

8 0
3 years ago
Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on
Vanyuwa [196]

Answer and Explanation:

  • Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.
  • Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.

So that it is the right answer.

5 0
3 years ago
Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life an
BartSMP [9]

Answer:

$2914

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense

3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value  

4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($9,920 - $1240) / 5 =  $1736

Accumulated depreciation = 1736 x 2 = $3472

Book value at the beginning of 2021 = 9920 - 3472 = $6448

Depreciation expense in 2021 = (6448 - 620) / 2 = $2914

5 0
3 years ago
Examine this supply and demand graph for a product. What does the red dot
pantera1 [17]

The product’s equilibrium price

Just simply because the price and quantity is the same

7 0
3 years ago
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