Answer:A. LN, JQ, RQ
Explanation:
To know the current profitability, we need to determine the contribution margin unit by the minutes on the constraints .
a) For LN
Contribution by unit = Selling price per unit- Variable cost per unit
$ 161.88 -$116.12 = $45.76
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $45.76/ 2.60 = 17.60
B) For JQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 350.41 -$279.11 = $71.3
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $71.3/ 4.60 = 15.50
c) For RQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 446.71 -$338.71 = $108
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $108/ 7.50 = 14.40
In order of their current profitability from most profitable to least profitable, We have LN with 17.60, next JQ with 15.50 and the least RQ with 14.40
Answer:
He will not pay any depreciation during October.
Explanation:
Depreciation is charged only on building equipment and machinery. It is not accounted for land as land is an asset whose value does not depreciate over the years.
Depreciation for Building A would be zero for the month of october as depreciation is computed from the first of the month of acquisition to the first of the month of disposition.
The depreciation expense will be computed on 1st of November.
Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.
Because the budget line FE describes the opportunities available to a worker who has $100 of nonlabor income per week, faces a market wage rate of $10 per hour, and has 110 hours of nonsleeping time to allocate between work and leisure activities This means that the person will choose the level of goods and leisure that lead to the highest possible level of the utility index given the limitations imposed by the budget constraint.
Leisure is the time when you are free from work or other duties and can relax.
Limitations the act of controlling the size or extent of something the act of limiting something.
Budget is a spending plan based on income and expenses.
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Answer:
The value of the option to wait is $0.70,option A.
Explanation:
In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.
Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.
The formula used in the calculating present value is PV=FV(1+r)^n
Where PV=present value
FV=future value
r=rate of interest
n=number of year
Find attached spreadsheet for detailed calculations.
Answer:
Sparrow Co's automobiles are premium brands that command premium prices
Explanation:
The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.
Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.
It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby eliminating excessive costs of holding inventory.
All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.
