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s2008m [1.1K]
3 years ago
8

2. Consider this game described in strategic form, where Player 1 chooses strategy, A,B,C, or D and Player 2 chooses W,X,Y or Z.

W X Y Z A 5,4 4,4 4,5 12,2 B 3,7 8,7 5,8 10,6 C 2,19 7,6 4,6 9,5 D 4,4 5,9 4,10 10,9 A) What strategies can be eliminated if both players are rational and both know the payoffs to each player from all strategies, but neither player knows if the other player is rational?
Business
1 answer:
myrzilka [38]3 years ago
6 0
Answer is between a and c
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You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $50
astra-53 [7]

Answer:

If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.

Explanation:

To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).

AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}

\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%

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4 0
3 years ago
The real-balances effect suggests that a
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A

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A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,020,000,
murzikaleks [220]

Answer:

(A) $180,000 (B) A journal entry was prepared for over- or under applied overhead to cost of goods sold.

Explanation:

Solution

Now,

Let us recall from the statement from the example as follows:

A company gives an overhead at =1 60% rate

The actual overhead cost for the present period is =1020,000

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Then,

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Thus

The Under applied overhead becomes,

Under applied overhead =The actual overhead - applied overhead

In other words we deduct the actual overhead for applied overhead

=$1020,000 - $840,000 = $180,000

(B) A Journal entry is carried out for the close over or under applied overhead.

Date Particulars                       Debit              Credit

               Cost of goods sold A/c $180,000

               Manufacturing overheads              $180,000

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It’s important that sales forecasts be made
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