Does having social responsibility make you viewed more or less favorable by consumers?

You produce widgets for sale in a perfectly com- petitive market at a market price of $10 per wid- get. Your widgets are manufac

mihalych1998 [28]

Answer: No.

Explanation:

This is a Perfectly Competitive market and that means that you are a price taker who maximises output at a point where Marginal Revenue equals Marginal Cost ( MR = MC). As costs have gone up, it simply means that for the conditions to be satisfied, you need to produce less at the factory in Connecticut.

That does not mean that you have to produce more at the Massachusetts plant because it is already producing at capacity and increasing the marginal cost would violate the MR=MC rule as you have no control over the price so you cannot change Marginal Revenue. It is therefore better to keep the production level at the Massachusetts plant unchanged.

6 0

3 years ago

The auditors of Dunbar Electronics want to limit the risk of material misstatement in the valuation of inventories to 8 percent.

Ksivusya [100]

Answer:

a. Briefly discuss what is meant by audit risk, inherent risk and control risk.

Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.

Audit Risk = Inherent Risk x Control Risk x Detection Risk

Auditors will want their overall audit risk to be at an acceptable level. Inappropriate opinion will result in damages / costs

Inherent risk is the susceptibility of an assertion to a misstatement that could be material individually or when aggregated with other misstatements, assuming there were no related internal controls.

Control risk is the risk that a material misstatement, that could occur in an assertion and that could be material will not be prevented or detected and corrected on a timely basis by the entity's internal control.

b. What level of detection risk is implicit in this problem?

Detection risk is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement

In this case the detection risk given is 0.41.

4 0

3 years ago

Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How many additi

Romashka [77]

Answer:

Number of meals = 100

Explanation:

The amount that the restaurant plan to spend on ads = $1000

The average selling price of meal = $10

The cost of food is = 30%

At breakeven, the total revenue is equal to total cost.

Total cost of advertsing = total revenue

So, the number of meals = $1000 / 10 = 100

5 0

3 years ago

Assume the reserve requirement is 10%. First National Bank received a deposit of $5,400. If there no slippage, how much could th

natta225 [31]

<span>Reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains uncharged.</span>

4 0

3 years ago

Billings Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside su

Delvig [45]

Answer:

Increase in income= $1,215,000

Explanation:

Giving the following information:

Billings Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000.

We don't know if all the fixed costs belong to the current production facilities. We will assume it does.

Current total cost= 600,000 + 900,000= $1,500,000

Buy= 4.5*100,000 - 165,000= 285,000

Increase in income= 1,500,000 - 285,000= $1,215,000

4 0

3 years ago