1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
REY [17]
3 years ago
15

Suppose that the expected value of weekly profits for an ice cream​ shop, before paying the​ manager, Amy, is ​E(pi​)equals500pl

us12​e, where e is​ Amy's weekly overtime hours. Amy is​ risk-neutral but incurs a cost ​C(e)equalse squared for working overtime.​ Thus, total expected surplus is ​E(S)equals​E(pi​)minus​C(e). What level of effort maximizes total​ surplus? The value of overtime that maximizes total surplus is eequals nothing hours. ​(Enter your response rounded to one decimal​ place.)
Business
1 answer:
anygoal [31]3 years ago
5 0

Answer:

6 hours

Explanation:

E(s)= 500+12e-e²

dE/de= 12-2e

0 = 12-2e

e=6

A total of 6 hours will maximize surplus

You might be interested in
Assume Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects t
photoshop1234 [79]

Answer:

A) $560 million

Explanation:

First lets calculate the NPV of the cash stream by this investment,

PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.

PV = 50 / (0.09 - 0.04)  = $1000 million

We assume that external finance issuance costs are payable as a part of initial outlay of the project and so,

Total initial outlay = 420 + 20 = $440 million

NPV of the project then,

NPV = 1000 - 440 = $560 million

Hope that helps.

8 0
3 years ago
In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturing overhead in making 500,000
Whitepunk [10]

Answer:

Please find the detailed answer as follows:

Explanation:

a) Predetermined overhead rate = Estimated manufacturing overhead cost   / Estimated total units in the allocation based

Predetermined overhead rate = 600,000 / 500,000 = 1.2 perunit

b) Total fixed cost spending variance = Actual fixed overhead cost - Estimated overhead cost

                                                         = 599,400 - 600,000

                                                         = 600 (F) Favourable

c) Total fixed cost volume variance = Actual fixed overheads - Estimated fixed overheads

  Actual fixed overheads = Estimated fixed overhead rate * Actual units produced

                                        = 1.2 * 508,000 = $609,600

Total fixed cost volume variance =$ 609,600 - $600,000 = $9600 (F) Favourable

4 0
3 years ago
Production used 2.5 labor hours per finished unit, and the company actually paid $21 per hour, totaling $52.50 per unit of finis
jeka94

Answer:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual hours

Explanation:

Giving the following information:

The production used 2.5 labor hours per finished unit, and the company paid $21 per hour, totaling $52.50 per unit of finished product.

<u>We weren't provided with enough information to solve the problem. We need estimated production hours and rates. But, I can leave the formula to solve it.</u>

To calculate direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Hours

3 0
3 years ago
________ entails even closer economic integration and cooperation than a common market. Group of answer choices A customs union
Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

8 0
3 years ago
A company purchases merchandise with a catalog price of $30,000. The company receives a 40% trade discount from the seller. The
Svet_ta [14]

Answer:

$17,820

Explanation:

Data provided in the question:

Catalog price of the merchandise = $30,000

Trade discount received = 40%

The amount of discount received = 40% of $30,000

= 0.4 × $30,000

= $12,000

Therefore,

Cost of Merchandise = Catalog price - Discount

= $30,000 - $12,000

= $18,000

also,

credit terms = 1/10, n/30

since, the payment was made within the discount period

1% of discount will be provided

thus,

amount of discount = 1% of cost of merchandise

= 0.01 × $18,000

= $180

hence,

Net cost of the merchandise

= Cost of merchandise - Discount on credit terms

= $18,000 - $180

= $17,820

3 0
3 years ago
Other questions:
  • Which of the following is an example of an accrual? A : Record Revenues that were received in cash in an earlier period. B : Rec
    5·1 answer
  • Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $ 40,000 Acco
    6·1 answer
  • What is an antonym for delicate?
    12·1 answer
  • What are two examples of high-tech industries?
    8·1 answer
  • The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after
    12·1 answer
  • A system in which businesses operate under minimal government regulation
    15·1 answer
  • Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the world marketpla
    12·1 answer
  • Rues and West Inc. is an automobile manufacturing firm. It produces and assembles all the parts of automobiles in its factory an
    5·1 answer
  • A record store that sells $1,000 woth of CDs per day to 40 customers ( the average cost of goods sold per unit is $12.50) How mu
    14·1 answer
  • Procter &amp; Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!