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3 years ago

The following data for a production department relate to two accounting periods:

Business

1 answer:

vagabundo [1.1K]3 years ago

5 0

Answer:

Fixed costs= $187,000

Explanation:

Giving the following information:

Activity(machine-hours): 17,000 18,500

Department costs: $246,500 $251,750

<u>To calculate the fixed and variable cost, we need to use the high-low method:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (251,750 - 246,500) / (18,500 - 17,000)

Variable cost per unit= $3.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 251,750 - (3.5*18,500)

Fixed costs= $187,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 246,500 - (3.5*17,000)

Fixed costs= $187,000

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Suppose the market for orange juice is in equilibrium at a price of $2.00 per bottle and a quantity of 4200 bottles per month. N

Ainat [17]

Answer:

Price elasticity of demand = 1.2

Explanation:

Given:

Old price (P0) = $2

New Price (P1) = $3

Old quantity (Q0) = 4,200

New quantity (Q1) = 3,000

Price elasticity of demand = ?

Computation of Price elasticity of demand :

Price elasticity of demand = % change in quantity / % change in price

Price elasticity of demand = [(4,200-3,000)/3,000] / [(3-2)/3]

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3 years ago

A value-based pricing strategy most likely begins with ________.

noname [10]

A value-based pricing strategy most likely begins with looking at their customers needs.

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3 years ago

A basic concept in economics is that all resources are scarce. Allocated. Valuable. Renewable.

DIA [1.3K]

A basic concept in economics is that all resources are scarce.

<h3><u>Explanation:</u></h3>

There are wants, needs and desires that are unlimited in nature with respect to humans. Resources are very essential for the survival of human beings. The distribution of these scare resources is studied by the Economics. Free goods refer to those goods that come without any cost associated with that.

The resources that are available naturally is scarce because there are only finite quantity available for the utilisation. Some of the examples of scarce resources include raw materials, workers, etc that are very essential for the production of the scarce goods.

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3 years ago

Read 2 more answers

The sense of urgency with respect to entrepreneurship tends to increase in European countries and other places where unemploymen

klio [65]

Answer:

The answer is True

Explanation:

Yes, It is not true that the sense of urgency with respect to entrepreneurship tends to increase in European countries and other places where unemployment benefits and other social services are well established and pay high rates.

This is because:

Unemployment benefit is paid to people who have recently lost their job via no fault of their own.
An established benefits and other social services puts stringent checks in place to screen beneficiaries.

Since it is seemingly difficult to access these benefits, the best option for sustained economic power is entrepreneurship.

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3 years ago

The balance of stockholders' equity at the beginning of the year and the end of the year was $ 60 comma 000 and $ 67 comma 000

Paul [167]

Answer:

Explanation:

Income/ (loss) for the year = Equity balance at the end +dividend paid- equity balance at the beginning

=$67,000+22,000-$60,000

=$29,000

Since no additional common stock was issued during the year, $29,000 represents income earned during the year before dividend is paid. After dividend of $22,000 has been paid, the balance of $7,000 profit will be added to retained earnings .

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2 years ago