Answer:
Janet's opportunity cost of making a pizza is <u>0.67 gallons</u> of root beer, and Megan's opportunity cost of making a pizza is <u>0.71 gallons</u> of root beer.
<u>Janet</u> has an absolute advantage in making pizza, and <u>Janet</u> has a comparative advantage in making pizza.
If Janet and Megan trade foods with each other, <u>Janet</u> will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is <u>0.71 gallons</u> of root beer, and the lowest price that makes both roommates better off is <u>0.67 gallons</u> of root beer per pizza.
Explanation:
Janet's opportunity cost to brew a gallon of root beer = 3/2 = 1.5 pizzas
Janet's opportunity cost to make a pizza = 2/3 = 0.67 gallons of root beer
Megan's opportunity cost to brew a gallon of root beer = 7/5 = 1.4 pizzas
Megan's opportunity cost to make a pizza = 5/7 = 0.71 gallons of root beer
Opportunity costs are extra costs or benefits lost that result from choosing one activity or investment over another alternative. E.g. in this case, Janet can either make 1.5 pizzas or 1 gallon of root beer during a 3 hour period, but she cannot make both of the together. She must choose one or the other.
Answer: A possible reason is a drop in the price of fresh fruits and vegetables.
Explanation: The revenues of Heinz have dropped in the second quarter and one very likely possibility is that the demand for their products are on the decline. The market demand for a product is affected by a number of factors and one of them is the price of close substitutes.
In this scenario, the close substitutes for Heinz products are fresh fruits and vegetables. The second quarter of the year (May, June and July) usually records lots of rainfall and good harvests of fresh foods. A good harvest encourages lower prices. If the price of these substitute food items reduces, the consumers would tend to buy more of those, that is, the demand for fresh fruits and vegetables would experience an increase while the demand for ketchup, packaged and processed foods would experience a decline. The decline would translate into lower sales figures and subsequently low revenues.
Answer:
Because market economies want to make money
Answer:
The description would be presented downwards and as per the circumstance presented.
Explanation:
- Instead of assigning resources associated with a specific frequency, activity based costs which always track costs on the basis seem to be an essential component of cost accounting because that would be a more effective means for providing resources.
- The costs when implementing some activity based accounting systems, furthermore, are even less than the potential advantages of moving towards this framework only then would it have been simpler as well as productive for the growing company ABC.
- Throughout the case situation, the claim whether direct labor constitutes a member of a minority fraction of the overall wages should not be an excellent explanation for either not apportioning production wages contingent on the operation, but if the organization determines that the expense of someone using ABC to assign labor profitability of different practices is greater than advantages, the organization increasing turn to something like an optimization model for that frequency.
Answer:
Cost of good manufactured= $86550
Explanation:
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= 0
Direct materials = beginning inventory + purchase - ending inventory= 58250
Direct labor= 14000
Manufactured overhead=Factory supervisor salary + Depreciation expense Factory building + Indirect materials= 8800 + 3700 + 1800= 14300
Ending work in progress= 0
Cost of good manufactured= 58250 + 14000 + 14300= $86550
