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e-lub [12.9K]
3 years ago
9

Hester operates a hand car wash service and charges customers $10 per car wash. Based on her knowledge of operations, the 100th

car in a day costs her $9.95 to wash. If she takes additional business, however, the 101st car will cost her $10.05 to wash. Does she take the additional business? Group of answer choices No, because she has hidden costs that far exceed her estimate of $10.05, so she loses money. No. She turns away business when the cost of an additional unit exceeds the income from it. No, because taking on additional business doesn’t earn her any money. Yes, because if she turns away business, his service will be forced to close. Yes. More business means more revenue, and more revenue means more profits.
Business
1 answer:
kvv77 [185]3 years ago
4 0

Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.

Explanation:

In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.

At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.

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Answer:

a. callahanb

Explanation:

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They have fixed liability in the form of medical expenses etc.

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3 years ago
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Answer:

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6 0
3 years ago
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Answer:

The correct answer is A.

Explanation:

Giving the following information:

Mcmurtry Corporation sells a product for $110 per unit. The product's current sales are 12,200 units and its break-even sales are 10,614 units.

<u>The margin of safety is the number of units or amount of dollars that provide genuine profit to the company. It is the "margin" that gives room to try new strategies</u>.

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