My carrots have grown sprouts, are they still good?

Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how

ddd [48]

Answer:

1. $2,185

2. Percentage increase 14%. Sales decrease -22%

3. $1,805

4. -17.4%

Explanation:

1. In calculating the profit for the first week we will simply deduct the costs from the sales.

= Sales - Fixed Costs - Variable costs

= (1,800 cones * 3.5) - 2,675 - ( 1,800 cones * 0.8)

= 6,300 - 2,675 - 1,440

= $2,185

$2,185 is her profit for the first week.

2. Percentage increase in selling price will be,

= 4-3.5/3.5 * 100%

= 14%

Percentage decrease in sales

= 1,400 - 1,800 / 1,800 * 100%

= -22%

3. Using the first questions method we have,

= (1,400 * 4) - 2,675 - (1,400 * 0.8)

= 5,600 - 2,675 - 1,120

= $1,805

$1,805 is her profit for the second week.

4. Decrease in profit

= $1,805 - $2,185 / 2,185 * 100%

= -17.4%

Maria Lorenzi suffered a decrease in profit of -17.4% as a result of raising her prices by 14%.

7 0

3 years ago

Select the items that describe what happens at the equilibrium price. Producers supply the exact goods that consumers buy. Consu

Mekhanik [1.2K]

The items that describes what happens at the equilibrium price are:

Producers supply the exact goods that consumers buy.

Consumers have enough goods, at the given price.

Producers used their resources efficiently.

Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.

6 0

3 years ago

Read 2 more answers

Radovilsky Manufacturing Company , in Hayward, California, makes flashing lights for toys. The company operates its production f

IRISSAK [1]

Answer:

Explanation:

Given Demand D = 12,500 lights per year

Set up cost S = $51

Cost of each light (C) = $1 .05

Holding cost = $0.1 per light per year

Production p= 100 lights per day

Usage (d) = 12,500/300 days = 41.66(round up to 42)

= 42 lights per day

a) What is the optimal sizeof the production run?

Q =√{(2×D×S) / (H(1-(d / p)))}

Q =√{(2×12500×51)/(0.1(1-(42/100)))}

= 4688.577 = 4689 units

Q = 4689 units

b) What is the average holding cost per year?

Average holding cost per year = average inventory level * H

= (Q/2)H[1- (d/p)]

= (4689/2)0.1[1-(42/100)]

= $135.98

c) What is the average setup cost per year?

average setup cost per year = (D/Q)S

= (12,500/4689)× 51

= 135.97

d) What is the total cost per year, including the cost of the lights?

Total cost = D*C + total set up cost + total holding cost

12,500 ×1.05 + 135.98 + 135.97

Total cost = $ 13,396.95

6 0

2 years ago

Given some of the apparent problems with Wilkerson’s cost system, should executives abandon overhead assignment to products enti

Aneli [31]

Answer:

Current issues in the framework by regarding fabricating costs as a period cost

Assembling overhead is evaluated bu increasing direct work with 300%. This estimation isn't exact and doesn't speak to how the genuine variable sub-costs that form the manufacturing overhead act for example machine related costs, arrangement work, getting and creation control, designing, bundling and sending. In spite of the fact that there could be a connection between the measure of direct work cost and the all out manufacturing overhead, this present strategy for estimation is dubious and ignores the real segments of manufacturing overhead.

Advantage of Product Cost

Increasingly exact impression of the inconstancy of the sources for example on the off chance that there are five factors, it is more precise than one.

Advantage of Period Cost

Treating manufacturing overhead as a period cost implies that it stays simpler to contrast Wilkerson's and a rival, given that contender likewise treats manufacturing overhead as a period cost for example it is simpler to analyze like-for-like

6 0

2 years ago

On December 31, 2006, Frye Co. has $2,000,000 of short-term notes payable due on February 14, 2007. On February 2, 2007, Frye is

Juli2301 [7.4K]

Answer:

The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is $500,000

Explanation:

The amount of short term notes payable reported as Current liabilities (CL) on December 31, 2006 is computed as:

Amount of short term notes payable = Short term notes payable due on Feb 14 - Borrowed from County Bank

where

Short term notes payable due on Feb 14 is $2,000,000

Borrowed from County Bank is $1,500,000

Putting the values above:

Amount of short term notes payable = $2,000,000 - $1,500,000

Amount of short term notes payable = $500,000

5 0

2 years ago