I don't what the answer is but I will look for it
Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.
<u>Explanation:</u>
(a) (i) Marginal cost (MC) = Change in Total cost (TC) by Change in output (Q)
(ii) Total revenue (TR) = Price (P) into Q
(iii) Marginal revenue (MR) = Change in TR by Change in Q
(iv) Profit = TR - TC
Therefore:
Q TC MC P TR MR PROFIT
0 25 60 0 -25
1 40 15 55 55 55 15
2 45 5 50 100 45 55
3 55 10 45 135 35 80
4 70 15 40 160 25 90
5 90 20 35 175 15 85
6 115 25 30 180 5 65
7 145 30 25 175 -5 30
8 180 35 20 160 -15 -20
9 220 40 15 135 -25 -85
10 265 45 10 100 -35 -165
When Q = 4, MR = $25 and MC = $15, so MR > MC. When Q = 5, MR = $15 and MC = $20, so MR < MC. Therefore,
Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.
(b) In the long run, new firms will enter the market by being attracted by positive short run profit. Therefore in long run, demand for individual firm will decrease, price for individual firm will decrease and profit will decrease until each existing firm earns zero economic profit.
Answer:
The correct answer is C: $944
Explanation:
Giving the following information:
Single plantwide predetermined overhead rate based on machine-hours. Total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours.
First, we need to determine the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= (237000/30000)+3.9= $11.8 per machine hour.
Now, we can calculate the allocated overhead:
allocated overhead= Estimated manufacturing overhead rate* actual amount of allocation base= 11.8*80= $944
Answer:
the amount that company should record the land is $97,600
Explanation:
The computation of the amount that company should record the land is shown below:
The Amount should be recorded for land is
= Purchase price + Commission + Property tax paid on behalf of seller + Title insurance
= $82,000 + $8,000 + $5,400 + $2,200
= $97,600
hence, the amount that company should record the land is $97,600
Answer and Explanation:
The preparation of the income statement is presented below:
Revenue $26,300
Expenses:
Depreciation expense $985
Fuel expense $3,438
Maintenance and repairs expense $1,675
Other expense(income) net $5,319
Provision for Income taxes $857
Purchased Transportation $1,281
Rentals and Landing fees $1,862
Salaries and Employee benefits $9,387
Net income $1,496
