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3 years ago

9. An expenditures incurred on factors of production

Business

1 answer:

zimovet [89]3 years ago

7 0

Answer:

A) cost

Explanation:

In economics, the cost of production is defined as the expenditures incurred to obtain the factors of production.

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The Minton Company has gathered the following information for a unit of its most popular product: Direct materials $ 7 Direct la

Blababa [14]

Answer: $14,500

Explanation:

Sales = 2,900 units × $19 per unit

= $55,100

Direct material = 2,900 units × $7

= $20,300

Direct labor = 2,900 units × $3

= $8,700

Variable Overhead = 2,900 units × 50% × 6

= $8,700

Variable shipping and other selling expense = 2,900 units × $1 per unit

= $2,900

Net profit from special order:

= Sales - Direct material - Direct labor - Variable Overhead - Variable shipping and other selling expense

= $55,100 - $20,300 - $8,700 - $8,700 - $2,900

= $14,500

Therefore, if the special order is accepted, Minton's operating profits will increase by $14,500.

8 0

3 years ago

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann

krok68 [10]

Answer:

$10,000

Explanation:

We need to find the segment margin of the deparment, which is equal to annual contribution margin minus avoidable fixed costs:

Wallen Corporation

Annual contribution margin $80,000

Annual fixed costs $160,000

Unavoidable fixed costs $90,000

Avoidable fixed costs $70,000

Segment Margin = Annual contribution margin - avoidable fixed costs

= $80,000 - $70,000

= $10,000

Therefore, if the company eliminated this department, it would have a financial advantage of $10,000, equivalent to the deparment's current segment margin.

5 0

2 years ago

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200

Evgesh-ka [11]

Answer:

Option (b) is correct.

Explanation:

In 2010,

Real GDP = 600,000

Population = 5,000

Real GDP per person:

= Real GDP ÷ Population

= 600,000 ÷ 5,000

= 120

In 2011,

Real GDP = 636,480

Population = 5,200

Real GDP per person:

= Real GDP ÷ Population

= 636,480 ÷ 5,200

= 122.4

Growth rate of real GDP per person during the year 2011:

= [(Real GDP per person in 2011 - Real GDP per person in 2010) ÷ Real GDP per person in 2010] × 100

= [(122.4 - 120) ÷ 120] × 100

= (2.4 ÷ 120) × 100

= 0.02 × 100

= 2%

It was seen from the data available on the world bank that the United states real GDP per person is growing at an average rate of 2% between 1910 and 2010.

Hence, the Growth rate of real GDP per person during the year 2011 is about the same as average U.S. growth over the last one-hundred years.

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3 years ago

Charlie wants to register a name for his company. He wants a name that is specific to the company and makes the company easily i

sweet-ann [11.9K]

Answer:

The name of the company isLaunch Business As

6 0

2 years ago

Read 2 more answers

How can economies of scale benefit you as a customer and society as a whole? Can the taxicab industry, in large cities, be subje

LiRa [457]

Answer:

The answer to this question can be described as follows:

Explanation:

The economy scale with cost activity and total volumes of sales, which lowers the overall product prices as a result, and grows all economies of scale, because consumers purchase the stuff like those, who pay even less than the amount they expect to receive.

It is the transition, the same saved money it's spent on other commodities and the overall deficit as well as the actual boosting of financial social assistance that generates income as a whole. It also increases outlays and creates more jobs, and benefits people with higher median income levels and a decent standard of living, For example

Uber often encourages ride-sharing, in which the car is capable of serving 3-4 people simultaneously. This gives a win-win situation to all sides and generates economies of scale. Throughout the market like India, Uber already is introducing it and being extremely successful.

3 0

2 years ago