Function of business

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $60,000 to produc

lozanna [386]

Answer:

Holmes should sell process the product further, because the profit if process further is higher than sell product now.

Explanation:

Net profit if sell product now is $37,500 ( = sales to another manufacturer $97,500 – already spent $60,000)

Sales as in process further/ Incremental Accounting

Sales: $695,125 (=$415 x 1,675 units)

Additional Process costs: $485,570 (=$290 x 1,675 units)

Net profit if process further = total sales $695,125 – already spent $60,000 – additional process cost $485,570 = $149,555, higher than profit $37,500 if sell now.

6 0

2 years ago

Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrate

Brilliant_brown [7]

Kyle would increase his consumption of turkey sandwiches from 7 to 9 per week if their price fell from $6 to $4. This illustrates the idea of<u> the law of diminishing marginal utility.</u>

The introductory economics textbook Principles of Economics was written by N. Gregory Mankiw, a professor of economics at Harvard.

As of 2020, there have been nine editions since its initial release in 1997. Prior to the book's publication, there was debate over the substantial advance author Greg Mankiw received from publisher Harcourt.

More than a million copies have now been sold, bringing in at least $42 million for Mankiw.

Mankiw made the decision to donate the textbook royalties he had been collecting from his students to charity after hearing their concerns about the cost.

Principles of Economics is the required text for introductory courses in American economics departments.

It is the "most commonly used economics textbook," according to its current publisher Cengage.

To learn more about Principles Of Economics here

brainly.com/question/17195696

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3 0

1 year ago

Why do monopolies engage in price discrimination when possible? Enumerate and explain the nature of possible impediments to pric

TEA [102]

Monopolies engage in price discrimination possible because they can get away with it.

A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay.

Consumers must pay the price of said product because they can not get the same product from any other seller.

6 0

3 years ago

Your bank is offering you an account that will pay 20 % interest in total for a two-year deposit. Determine the equivalent disc

Crank

Answer: a. 0.042 b. 0.086 c. 0.00692

Explanation:

NOTE: Convert months to years. So 24 months = 2 years.

a. Six months

Months to year conversion gives: 6months/24months as 1/4 years

= (1 + 18%)^ 1/4 — 1 x 100%

= 1.042 — 1

= 0.042

Equivalent Discount Rate = 0.042

b. One year

12months/24months as 1/2 years

= (1 + 18%)^1/2 — 1 x 100%

= 0.086

Equivalent Discount Rate = 0.086

c. 1 month

1month/24months as 1/24 years

= (1 + 18%)^1/24 — 1 x 100%

= 0.00692

6 0

3 years ago

Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on

labwork [276]

Answer:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

Explanation:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

1. Garage rent is fixed Manufacturing Overhead because he will pay a fixed rent amount every month.

2. Utilities is fixed Manufacturing Overhead because he will pay a fixed amount every month.

3. Cost of the industrial design course is Sunk because the cost has been spent already

4. Equipment rented is fixed Manufacturing Overhead because he will pay a fixed amount every month.

5. Material cost is variable because it will depend on how much produced every month.

6. Labor cost is variable because it will depend on how much produced every month.

7. Present salary is an Opportunity cost because wont earn salary anymore when he starts the business; this is also differential because it is the difference between the cost of the two alternative decisions

Advertising is a fixed Selling costs because he will pay a fixed amount every month and it is related to sales not production.

4 0

3 years ago

Function of business​

Function of business