Answer:
d. reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up.
Explanation:
When government implements price controls it can either be a price ceiling ( reduced price) or a price floor (increased price).
A price ceiling gives a maximum price level above which sellers cannot sell their product. This will cause a reduction in amount supplied because the sale of products at lower price will not be attractive. Demand will be in excess for the scarce products.
If a price floor is imposed there is a minimum price that sellers are not allowed to sell below. Sellers are free to sell above this price, supply will increase but there will be less demand for the product at higher price. This causes excess of supply.
Answer:
$9.75
Explanation:
the contribution margin of product J = $23.70 - $15.65 = $8.05
the contribution margin of product D = $43.65 - ($9.75 + $15.65) = $18.25
the differential cost of producing product D is equal to the additional cost incurred by further processing product J = $9.75
differential costs or expenses are the difference in costs resulting from choosing one activity over another, or like in this case, further processing one product into another.
The highest number because in money the highest fee is the most money
Answer:
Explanation:
Labor Input Physical output
10 500
11 600
12 690
13 760
14 800
marginal output of 11 th labor = 600 - 500 = 100
price of each product = 7
marginal revenue product of 11 th labor 7 x 100 = 700
B )
price of each of the goods sold = 10
marginal factor cost of labour = 700
minimum no of goods to be sold to cover the labour cost
= 700 / 10 = 70
no of goods added due to addition of 11 the labour = 100
no of goods added due to addition of 12 the labour = 90
no of goods added due to addition of 13 the labour = 70
so no of units of labor upto which the firm will continue to hire
= 13 .
Answer:
The days' sales in inventory for 2019 is 85.88 days
Explanation:
For computing the days' sales in inventory first we have to compute the inventory turnover ratio.
Inventory turnover ratio = Cost of goods sold ÷ average inventory
where,
Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2
= ($25,000+ $ 55,000 ) ÷ 2
= $40,000
And, the cost of good sold is $170,000
Now put these values to the above formula
So, the answer would be equal to
= $170,000 ÷ $40,000
= 4.25 times
Now days sales inventory = Total number of days in a year ÷ inventory turnover ratio
= 365 days ÷ 4.25 times
= 85.88 days
