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AfilCa [17]
3 years ago
11

Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for th

e current period follows: Product Pounds Price/lb. Loin chops 2,700 $ 5.00 Ground 9,000 2.00 Ribs 3,750 4.60 Bacon 7,500 3.50 The total joint cost for the current period was $45,000. How much of this cost should Wren Pork allocate to Loin chops?
Business
1 answer:
Sonbull [250]3 years ago
4 0

Answer:

$8,100

Explanation:

As per the data given in the question,  first we have to determine the total cost and per unit cost for allocation made to Loin chops which are shown below:

Total cost = cost of loin + cost of chops + cost of ground + cost of bacon

= ($2,700 × 5) + ($9,000 × 2) + ($3,750 × 4.6) + ($7,500 × 3.5)

= $75,000

Therefore, per unit cost is

= Total joint Cost ÷ total cost

= $45,000 ÷ $75,000

= $0.6

Hence allocation to loin chops is

= ($2,700 × 5) × $0.6

= $8,100

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4 years ago
If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5
Salsk061 [2.6K]

This question is incomplete, I got the complete one from google as:

Output         Total cost

 0                       5

 1                        10

 2                       12

 3                       15

 4                       24

 5                       40

If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5 units of output in the short run and exit in the long run. c. shut down in the short run and exit in the long run. d. produce 5 units of output in the short run and face competition from new market entrants in the long run

Answer:

Option D is correct- If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.

Explanation:

The fixed cost is $5, this indicates that when the market price is $16, the marginal cost is also $16.

When the 5th unit is produced, the total revenue received will be $80 while the total cost will be $40. This indicates that there will be a positive economic profit which will bring new firms in the long run.

Hence, option D is the correct answer - If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.

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3 years ago
Alternative price indexes
cluponka [151]

Answer:

-value of all goods and services produced in the economy this year

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-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

6 0
3 years ago
Sherman Peabody earns a monthly salary of ​$1,500​, which he receives at the beginning of each month. He spends the entire a
ale4655 [162]

Answer: A. maximizes the profits from money management.

Explanation:

The optimal average level of money is indeed the amount that maximises profit from money management.

Money management is essentially taking charge of your money and ensuring that you manage it in such a way as to limit unnecessary expenses whilst growing money through measures such as budgeting, investing and expenses tracking.

With Mr Peabody's income and other financial constraints, the optimal average level of money will be the most he can maximise from managing his money.

6 0
4 years ago
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Answer:

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The increase in allowance for bad debt is always Written Off by using the provision and at the year end the amount that must have been written off is $600 which is the increase in the provision. This means that the Allowance for Bad Debts is​ $600.

3 0
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