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3 years ago

Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.

Business

1 answer:

Lady bird [3.3K]3 years ago

6 0

Answer:

a. As a result of the price increase in corn, the supply of corn would increase. At the same time, the amount of acreage used in corn production would increase.

b. The most likely cause of the change in the amount of acreage used in corn production is:

A. The higher price signals suppliers that corn is becoming more valuable.

Explanation:

With corn as the major ingredient for the production of ethanol biofuel the demand and supply of corn increase to match with the increasing price. Suppliers, on their part, increase production by utilizing more acreage of land devoted for corn production. This is the typical interplay between the market forces that drive market equilibrium.

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The mayor of your hometown has said she will request that the federal government extend a nearby interstate highway so that it p

jolli1 [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

3 0

3 years ago

Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numb

jeka57 [31]

Answer:

Factory rent $ 3,030: Product - MOH - Fixed

Company advertising 1,060: Period - Variable

Wages paid to assembly workers 31,400: Product - DL - Variable

Depreciation for salespersons’ vehicles 2,140: Period - Fixed

Screws 595: Product - DM - Variable

Utilities for factory 825: Product - MOH - Variable

Assembly supervisor’s salary 3,640: Product - MOH - Fixed

Sandpaper 125: Product - MOH - Variable

President’s salary 5,050: Period - Fixed

Plastic tubing 4,080: Product - MOH - variable

Paint 240: Product - DM - Variable

Sales commissions 1,330: Period - Variable

Factory insurance 1,010: Product - MOH - fixed

Depreciation on cutting machines 2,120: Product - MOH - Fixed

Wages paid to painters 8,000: Product - DL - Variable

Explanation:

- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.

- Variable cost is a corporate expense that changes in proportion to production output.

- Fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

In this exercise:

Factory rent $ 3,030: Product - MOH - Fixed

Company advertising 1,060: Period - Variable

Wages paid to assembly workers 31,400: Product - DL - Variable

Depreciation for salespersons’ vehicles 2,140: Period - Fixed

Screws 595: Product - DM - Variable

Utilities for factory 825: Product - MOH - Variable

Assembly supervisor’s salary 3,640: Product - MOH - Fixed

Sandpaper 125: Product - MOH - Variable

President’s salary 5,050: Period - Fixed

Plastic tubing 4,080: Product - MOH - variable

Paint 240: Product - DM - Variable

Sales commissions 1,330: Period - Variable

Factory insurance 1,010: Product - MOH - fixed

Depreciation on cutting machines 2,120: Product - MOH - Fixed

Wages paid to painters 8,000: Product - DL - Variable

5 0

3 years ago

In reviewing the Indian software industry and the diamond of national advantage, which of the following is a relatively weak set

Dima020 [189]

U.S. demand conditions.

Answer: Option B.

<u>Explanation:</u>

Since the question is about the domestic demand and the demand of the citizens who are living in the country, the demand of the people who are living in the United States of America should not affect the domestic demand of Indian citizens.

The demand of every good and service is affected by some factors which increase or decrease the demand of these goods and the services. But the demand of the international consumers or customers will not affect the demand of the national goods and services.

3 0

3 years ago

Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper

IrinaK [193]

Answer: please refer to the explanation section

Explanation:

Design A

Initial cost $2500 000

operating and maintenance cost = $800 000

Overhauls = $1250000 in 5 years

R = 5%

PV= overhaul cost/(1+r)^n + maintenance cost(1 -(1+r)^-5)/r

PV = 1250000/(1 + 0.05)^5 + 800000(1 - (1 + 0.05)^-5)/0.05

PV = 979407.71 + 3463581.34 = 4442989.05

costs to be capitalized = present value of overhaul costs = 979407. 71

Design A will be valued at = 2500000 + 979407. 71 = 347907.71

Total cost of Choosing Design A = 979407.71 + 3463581.34 + 2500000

Total cost of Choosing Design A = 6942989.05

Design B

initial cost = $5750000

Operating and Maintenance = $600000

Overhauls = $3000000 in 10 years

PV= overhaul cost/(1+r)^n + maintenance cost(1 -(1+r)^-5)/r

PV = 3000000/(1 + 0.05)^10 + 600000(1 - (1 + 0.05)^-10)/0.05

PV = 1841739.76 + 4633040.96 = 6474780.72

Cost to be capitalized = overhaul cost = 1841739.76

Design B will be value at = 1841739.76 + 5750000 = 7591739.76

Total cost of costs Design B = 1841739.76 + 5750000 + 4633040.96

Total cost of costs Design B = 12224780.72

Design B involves more costs than Design A. Present value for total cost for choosing Design B is Higher than the present value for Total costs of choosing Design A

Choose Design A

3 0

3 years ago

An office manager uses 500 boxes of file folders per year. The price is $8.50 per box for an order size Q <= 200, $8.00 per b

Serhud [2]

Answer:

The correct answer is 8 $ per box

Explanation:

Solution

Given that:

Let EOQ = √(2*D*S/H) = √(2*500*150/0.2*P)

(a) Let P = 8.5 $/box

Then,

EOQ = √(2*500*150/0.2*8.5) = 297 boxes

Thus,

No feasible as P = 8.5 $/box when Q<=200

(b). Let P = 8 $/box

Thus,

EOQ = SQRT(2*500*150/0.2*8) = 306 boxes (approx)

This quantity is right as it falls between 200 and 800.

Therefore the price at the optimal order quantity that minimizes total annual cost is 8 $/box

7 0

3 years ago