1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below: East West Sales $ 330,000
GenaCL600 [577]

Answer:

The company’s overall net operating income  would be $52,140

Explanation:

If the all divisions of the company are operates at break even level the overall net operating income of the company would be zero . because at break even level the sales value is equals to total variable cost plus total fixed cost if the company incurring any addition fixed cost then the over all net operating income will show loss of additional fixed incurred.  The answer for the given question is the overall net operating income of the company would be ($52,140).

3 0
3 years ago
150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital.
goldenfox [79]

Answer:

The answer is $7400000

Explanation:

Solution

Recall that:

There is  no information is given about per unit cost or sales price hence, a reverse calculation is to be made to find out the projected total revenue.

Now,

The reverse calculation to find sales is computed as follows:

Begin from the expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

Thus,

From the calculation of each term is as stated below:

1. The profit expected = 15% return on their investment. it is to be after tax return, total investment = $8000000,

So,

The Profit expected  = $8000000 *15% = $1200000.

2. The tax xxpenses = 25% that is, it should be 25% on taxable profit which is  decreased from it and then net profit after tax is available,

Thus,

we have net profit after tax we can compute the  taxable profit as = $1200000 / 75% = $1600000.  for example, tax amount on taxable profit = $160000 * 25% = $400000.

3. The Interest Expenses = 5% of borrowed fund from bank,

Now,

The  borrowed fund from bank = $2000000 (8000000-6000000)

The expenses interest = $ 100000 ($2000000*5%)

4. Undistributed Expenses is stated as follows:

The Undistributed expenses are given in the question = $2000000.

5. Variable cost that is the labor cost and cost of food :

From the question it is given that it is 50% of the sales, which means the remaining 50% is the contribution.

Now

The contribution on reverse calculation is  computed as:

Profit +taxes + Interest + fixed expenses

Contribution = 1200000 + 400000 + 100000 + 2000000 = $ 3700000,

Thus,

We say,let the sales be 10 , then variable cost be 50 and contribution is 50, that means variable cost = contribution in this case.

so, in proportional calculation , the variable cost = $3700000 .

Thus

The projected sales = expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

The total revenue projected =$1200000+ $ 400000 + $100000 + $ 2000000 +$ 3700000

Therefore, the total revenue projected = $ 7400000

3 0
3 years ago
There is no nation involved in global trade that still maintains a fixed value of their currency relative to a key currency or g
kirza4 [7]

Answer:

a. true

Explanation:

  • Gold is a currency that is the free market system that will fluctuate tp the form of exchange and no country in international trade can maintain a fixed value of its currency relative to the key currency though they can trade gold in multiple ways and can participate in price movements.
6 0
3 years ago
Amy is shopping for a dress to wear to a formal dance. She tried on several dresses, not even noticing the price of each. After
fredd [130]

Answer: It is called affective choice

Explanation:

Affective decision-making (ADM) is a debatable and predictive theory of individual choice under risk and uncertainty. It generalizes expected utility theory by positing the existence of two cognitive processes – the “rational” and the “emotional".

5 0
3 years ago
A case in which people like to drink orange juice at breakfast but not before going to bed, and do not like to drink milk for br
yulyashka [42]

Answer:

Letter C is correct. <u>Person by situation interaction.</u>

<u>Explanation:</u>

This is a cognitive process that occurs through the individual perspective of each human being. This implies that our behavior is not totally conditioned by an automatic response predetermined by any variables, but what determines our way of being and acting is the set of learnings, memories, thoughts and perceptions about certain situations as well. as the process of social interaction, which determines how the experiences and actions lived by an individual in society will actively influence their tastes, actions and perceptions about society in general.

8 0
3 years ago
Other questions:
  • Judith puts $5000 into an investment account with interest compounded explain continuously. which approximate annual rate is nee
    12·1 answer
  • Does​ Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Fi
    12·1 answer
  • Suppose the real interest rate is 4% and expected inflation is 1% . What is the nominal interest rate? nominal interest rate: %
    10·1 answer
  • Kaspar Industries expects credit sales for January, February, and March to be $202,100, $264,200, and $319,300, respectively. It
    14·1 answer
  • So if I ask a question does it take away my points or does it just get points from somewhere else and give it to you guys?? And
    15·2 answers
  • Jed goes to the deli to purchase turkey that costs $6.71 per pound. State regulations indicate that the scale used in the deli m
    7·1 answer
  • Bill and Jane Jones were divorced on January 1, 2018. They have no children. In accordance with the divorce decree, Bill transfe
    5·1 answer
  • Whats your name I would like to know your name
    13·2 answers
  • Adjustments to expense accounts at the end of the accounting period are made to adhere to accrual accounting principles, specifi
    15·1 answer
  • On the balance sheet, if ending inventory is overstated, then total assets will be __________ and stockholders' equity will be _
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!