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Natalija [7]
3 years ago
6

Assume you are in the business of producing and selling milkshakes. If you could produce more milkshakes with the same input, wh

at would happen to your productivity and profits assuming the price of your milkshakes remains the same?
Business
1 answer:
poizon [28]3 years ago
6 0

Answer:

Both increases

Explanation:

Suppose a person initially produces and sell some amount of milkshakes with the available resources.

But, if he will be able to produce and sell more quantity of milkshakes with the same level of resources then this will indicates that there is a rise in the productivity of this person and if the number of milkshakes sold increases then as a result profits increases at a same price level.

For Example:

Case 1:

Initially,

Person producing and selling = 20 units of milkshakes at a selling price of $10 each and cost of inputs used in the production = $50

Therefore, Profits = Total revenue - Total cost

                              = (20 units × $10 each) - $50

                              = $200 - $50

                              = $150

Case 2:

Now, we assumed that there is an increase in the productivity of this person. Cost of production and selling price of each milkshake remains the same.

Person producing and selling = 40 units of milkshakes at a selling price of $10 each and cost of inputs used in the production = $50

Therefore, Profits = Total revenue - Total cost

                              = (40 units × $10 each) - $50

                              = $400 - $50

                              = $350

Hence, there is an increase in the profits from $150 to $350.

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Jeff is an entrepreneur who decided to start an online bakery. Since all his business will be done online and he can bake in his
nekit [7.7K]

Answer:

competition                  

Explanation:      

In simple words, competition refers to the tendency of two or more parties to perform better than one another for the sake of own personal benefits. In business, competition can be done from various perspectives like price or quality.

In the given case, Jeff has been producing at a lower cost but despite of earning high profits he is willing to sell for lower prices with the motive of competing in the market and gaining higher market share.

6 0
3 years ago
Cindy Medavoy will invest $7,990 a year for 19 years in a fund that will earn 10% annual interest. Click here to view factor tab
Rudik [331]

Answer:

The correct answer for future value if first payment occur today is $449,645.24 and if first payment occur at the end of year is $408,761.13.

Explanation:

According to the scenario, the given data are as follows:

Payment (pmt) = $7,990

Rate of interest (r) = 10%

Time (n) = 19 years

So, we can calculate the future value by using following formula:

Future Value ( if payment occurs today) :

FV = Pmt  (((1+r)^n   - 1) ÷ r) x (1+r)

By putting the value:

= $7,990 ((( 1+ 0.10)^19   -1) ÷ .10) × ( 1 + 0.10)

= $7,990 ( 51.16) × ( 1.10)

= $449,645.24

Future Value ( if payment occurs at the end of year):

FV = Pmt x ((1+r)^n   -1)) ÷ r)

= $7,990 ((1 + 0.10)^19  -1) ÷ 0.10)

= $7,990 × 51.16

= $408,761.13

4 0
3 years ago
Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,90
Alexxx [7]

Answer:

Conversion costs: d. $384,200

Explanation:

Conversion costs are the costs incurred on activities that convert raw material to finished goods. Conversion costs are calculated by using following formula:

Conversion costs = Direct labor + Factory overhead.

In the case: Direct labor  are $196,300; Factory overhead are $187,900

Therefore:

Conversion costs = $196,300 + $187,900 = $384,200

5 0
3 years ago
Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9
kaheart [24]

Answer:

Reorder point is 40

Explanation:

Reorder point is the level of inventory which trigger the purchase of new inventory.

The formula for Reorder point is

Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0
2 years ago
Petrus Framing's cost formula for its supplies cost is $1,840 per month plus $12 per frame. For the month of March, the company
adoni [48]

Answer:

$84 unfavorable

Explanation:

The computation of the activity variance for supplies cost is shown below:

Supplies cost for the standard one is

= $1,840 + (624 frames × $12 per frame)

= $9,328

And, the supplies cost for the actual one is

= $1,840 + (631 frames × $12)

= $9,412

So the activity variance is

= $9,328 - $9,412

= $84 unfavorable

As the standard cost is less than the actual one

6 0
3 years ago
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