Answer:
$2,650,000
Explanation:
For Instrument Division:
Increase in Income per unit:
= Existing Purchase Price - New Purchase Cost (Transfer price)
= $175 - $148
= $27
Total Savings/Increase in Income:
= Number of units × Increase in Income per unit
= 50,000 × $27
= $1,350,000
For Components Division:
Increase in Income per unit:
= Sales or transfer price - Variable Cost
= $148 - $122
= $26
Total Savings/Increase in Income:
= Number of units × Increase in Income per unit
= 50,000 × $26
= $1,300,000
Therefore, the total income from operations increase is as follows:
= Instrument division increase in income + Component division increase in income
= $1,350,000 + $1,300,000
= $2,650,000
Answer:1 ) 6 units of output,( 2) Total revenue is $90, (3) Total Cost is $93
Explanation:
Q TFC TVC. TC
$ $ $
O 11 0 11
1 11 12 23
2 11 22 33
3 11 34 45
4. 11 48 59
5 11 64 75
6 11 82 93
To calculate the total cost
TFC + TVC = Total Cost
11 + 0 = 11
11 + 12 = 23
11 + 22 = 33
11 + 34 = 45
11 + 48 = 59
11 + 64 = 75
11 + 82 = 93
The total cost is $93
To calculate the Total revenue
Price × Quantity
Since price = $15, Quantity = 6 unit
15 × 6 = 90
Total revenue = $90
The firm will produce 6 units of output
Answer:
Relevant costs:
Selling price= 6.50
Delivery= $125
Explanation:
Giving the following information:
The special project would require all 360 kilograms of the raw material that are in stock and that originally cost the company $2,520 in total.
If the company were to buy new supplies of this raw material on the open market, it would cost $7.25 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $6.50 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $125 for all 360 kilograms.
The relevant costs are those that affect the decision moving forward. Costs that occurred in the past musn't be taken into account.
Relevant costs:
Selling price= 6.50
Delivery= $125
Answer:
Longer periods of unemployment for their workers.
Explanation:
Unemployment is when people who are willing and able work do not have jobs
Types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
If a government gives generous unemployment insurance programs, there would be less incentive to find jobs because one of the main reasons why people would want to work is to have money. If the government provides generous pay to the unemployed, there would be less motivation to work and unemployment increases