Answer: The correct answer is <u>$150.</u>
Explanation:
We know that the marginal cost of hiring a third worker is $ 40. And that the average total cost when 3 workers are hired is $ 50. The average total cost formula is:
Average total cost = (total cost) ÷ (number of workers)
Then we solve the equation in 3 steps:
1) $ 50 = X ÷ 3
2) $ 50 × 3 = X
3) $ 150 = X
We can diagram the workers cost chart
Number of workers - Marginal cost - Total cost
1 - $60 - $60
2 - $50 - $110
3 - $40 - $150
Answer:
B) excess insurance.
Explanation:
An excess insurance policy covers any risk of loss beyond the scope of a primary insurance coverage. When a company purchases excess insurance, they do not have to pay any money in case a claim or a loss exceeds their primary insurance policy. It's basically having a double insurance in case your loss is too large, the second insurance will take care of it.
Answer:
Allocated MOH= $136,479
Explanation:
Giving the following information:
Estimated that manufacturing overhead for the year= $175,900
Estimated Direct labor hours= 25,900
Actual direct labor hours= 20,100
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 175,900/25,900= $6.79 per direct labor hour
Now, we can allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6.79*20,100= $136,479
I believe the answer is <span>ban the use of hazardous chemicals by industries.
This happen because the benefit of using several hazardous chemicals actually exceeds the risk of damage that it potentially cause to the environment (For example, Plutoniom that is used as a substance material to make energy generating nuclear reactor)</span>
Answer:
$6.00
Explanation:
Given data
quantity demanded ( x ) ∝ 1 / p^3 for p > 1
when p = $10/unit , x = 64
initial cost = $140, cost per unit = $4
<u>Determine the price that will yield a maximum profit </u>
x = k/p^3 ----- ( 1 ). when x = 64 , p = $10 , k = constant
64 = k/10^3
k = 64 * ( 10^3 )
= 64000
back to equation 1
x = 64000 / p^3
∴ p = 40 / ∛x
next calculate the value of revenue generated
Revenue(Rx) = P(price ) * x ( quantity )
= 40 / ∛x * x = 40 x^2/3
next calculate Total cost of product
C(x) = 140 + 4x
Maximum Profit generated = R(x) - C(x) = 0
= 40x^2/3 - 140 + 4x = 0
= 40(2/3) x^(2/3 -1) - 0 - 4 = 0
∴ ∛x = 20/3 ∴ x = (20/3 ) ^3 = 296
profit is maximum at x(quantity demanded ) = 296 units
hence the price that will yield a maximum profit
P = 40 / ∛x
= ( 40 / (20/3) ) = $6
