Answer:
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Answer:
It is more profitable to sell te products as-is.
Explanation:
Giving the following information:
Sell as-is:
Selling price= $31
Continue processing:
Selling price= $35
Unitary incremental cost= $8
Units= 6,100
<u>The firsts $5,200 is a sunk cost, this means that the cost will remain the same in both options. It is irrelevant to the decision-making process.</u>
Sell as-is:
Effect on income= 6,100*31= $189,100
Continue processing:
Effect on income= 6,100*(35-8)= $164,700
It is more profitable to sell te products as-is.
Answer:
Short Run Aggregate Supply SRAS is the total goods and services available in an economy at different price levels with respect to fixed production resources.
Explanation:
A) When the price level increases, aggregate supply increases as well because demand is high and manufacturers will produce more.
B) When Input prices decrease, short run aggregate supply is not affected.
C) When firms and workers expect the price level to fall, aggregate supply decreases to cushion the effect of imminent loss due to fall in prices.
D) When the price level decreases, supply also decreases since it is an indication that the market is approaching saturation,
E) New policies increase the cost of meeting government regulations and does not necessarily influence SRAS.
F) The number of workers in the labor force does not affect SRAS.
Answer:
True
Explanation:
There is always a conflict of interest between Management and Shareholders. The Managers Interest if to increase their remunerations and Shareholders interest is to have maximum return from the business. An increase in remuneration will result in the reduction of shareholder's return in the form of expense. In this cash the business is going to expand internationally which will create new opportunities for the business. The Increase in in compensations of manager will result in increase in return as well. The manager will try to target the potential market and make the expansion succesful to be compensated more. So, goal is consistent with the goals of shareholders.