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3 years ago

9

A firm's marginal product of labor is 4 and its marginal product of capital is 5. if the firm adds one unit of labor, but does

not want its output quantity to change, the firm should

1 answer:

Irina18 [472]3 years ago

7 0

The firm should hire 2 more people

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Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their fireworks at the manufacturer's su

Alex_Xolod [135]

1. The profit for ABC X-Plode when both firms charge MSRP is $1,000.

Units ABC X-Plode will sell = 100 units

Profit per unit = $10 ($20 - $10)

Total profit = $1,000 ($10 x 100)

2. The profit for ABC X-Plode when it charges MSRP, but Boomburgs charges below MSRP is $500.

Units ABC X-Plode will sell = 50 units

Profit per unit = $10 ($20 - $10)

Total profit = $500 ($10 x 50)

3. The profit for ABC X-Plode when it charges below MSRP, but Boomburgs charges MSRP is $350.

Units ABC X-Plode will sell = 175 units

Profit per unit = $2 ($12 - $10)

Total profit = $350 ($2 x 175)

4. The profit for ABC X-Plode when both firms charge below MSRP is $250.

Units ABC X-Plode will sell = 125 units

Profit per unit = $2 ($12 - $10)

Total profit = $250 ($2 x 125)

Data and Calculations:

Cost per unit = $10

Quantity sold at MSRP = 100 units

Sales units below MSRP:

One firm sells = 175 units

Second firm sells = 50 units

Sales units for each firm when they sell below MSRP = 125 units

Let:

Price at MSRP = $20

Price Below MSRP = $12

Learn more: brainly.com/question/17141668

3 0

2 years ago

What are new guidelines issued by GAAP for consolidating entities

Brut [27]

Consolidation Rules Under GAAP

The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares

6 0

3 years ago

Internal failure costs are costs incurred ________. A. after the company delivers poorminusquality goods or services to custome

Grace [21]

Answer:

c. when the company corrects poorminusquality goods or services before delivery to customers.

Explanation:

Internal failure costs are costs incurred when the company corrects <u>poorminusquality goods or services before delivery to customers.</u>

5 0

2 years ago

The Morris Corporation has $300,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are

Ad libitum [116K]

Answer: 1.41

Explanation:

Given that,

Debt outstanding = $300,000

interest rate = 8% annually

annual sales = $1.5 million

average tax rate = 40%

net profit margin on sales = 4%

interest amount = 300,000 × 0.08

= $24,000

net profit = 4% of 1.5 million

= $6,000

Profit before tax = $\frac{6,000}{0.60}$

= $10,000

earning before interest and tax = profit before tax + interest

= $10,000 + $24,000

= $34,000

TIE ratio = $\frac{EBIT}{Interest}$

= $\frac{34,000}{24,000}$

= 1.41

8 0

3 years ago

On September 1, Year 1, Great Lakes Equipment receives $24,000 from a customer for work to be performed evenly over the next 2 y

posledela

Answer:

Great Lakes should recognize on the income statement for the year ending December Year 1 $4,000

Explanation:

The income statement only recognize the amount of money that was generated during the period of the income statement.

If the company invoiced by month, it only recognize the total amount for the last four months of the year.

7 0

3 years ago