Answer:
6/7 kN
Explanation: See attached file
Suppose two pizza parlors employ drivers whose job it is to deliver pizzas to those who order over the phone. One company pays i
1 answer:
You might be interested in
The firm should decrease the amount of capital used.
Solution:
The wage rate is $12 per hour and capital is rented at $8 per hour.
The marginal product of labour is 45 units of output per hour and the marginal product of capital is 65 units of output per hour.
A manager hires labour and rents capital equipment in a very competitive
market.
The ratio of marginal product of labour and wage rate
=
= 3.75
The ratio of marginal product of capital and rent
=
= 8.125
If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.
Answer:
- 1200 BEPunits
- $14,400 BEP dollars
- second scenario
- 1200 BEPunits
- $14,400 BEP dollars
Explanation:
contribution margin = Sales - Variable Cost
12 - 10 = 2 contribution margin
fixed expenses = 2,400
BEP = 2,400/2 = 1,200 units
<u>Resuming: </u>each unit contributes with $2 dollars therefore it needs to sale 1,200 untis to pay the fixed cost.
units x sales price = sales revenue
1,200 x 12 = 14,400 BEP in Dollars
Also it is posible to get this by using contribution margin ratio
in the BEP formula:
contribution margin/sales price = 2/12 = 1/6
fixed cost /contribution margin ratio = 2,400/(1/6) = 14,400
Scenario were fixed cost increase:
increase in fixed/contribution margin + previous BEP = BEPunits
increase in fixed/contribution margin ratio + previous BEP = BEPdollars
600 fixed cost /contribution margin = 600/2 = 300 more units to our prevous 1,200 total of 1,500
600 fixed cost /contribution margin ratio = 600/(1/6) = $3,600 more sales revenue to our prevous 14,400 total of 18,000