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pogonyaev
3 years ago
9

A firm producing good Y recently increased monthly production from​ 1,500 units to​ 2,000 units. This had no impact on the marke

t price of good Y. At the new production level of​ 2,000 units, the​firm's average cost is​ $3.5 while its marginal cost of production is​ $4. The marginal revenue however is fixed at​ $5 for all levels of output. Jake Williamson is the operations head of the firm. Jake feels​ that, since the firm has the​ capacity, it should have increased production further to​ 2,500 units which would have maximized profits. On the other​ hand, Mathew Hayden of the market research team anticipates an increase in price to​ $5.5 in the near future. He therefore claims that the firm may not be maximizing economic profit in the short run even at​ 2,500 units.
Which of the following is most strongly implied by this​information?
A. At the current level of​ production, the firm is making a profit of​ $3,000.
B. The current price of good Y is equal to​ $4.
C. Mathew feels that the demand curve faced by the firm will shift downward.
D. Jake thinks that at the production level of​ 2,500 units, the average cost of producing Y will be equal to the market price.
E. The demand curve currently faced by the firm is horizontal at​$4.
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer:

A. At the current level of​ production, the firm is making a profit of​ $3,000.

Explanation:

Units produced at first scenario 1500

Units produced at second scenario 2000

$3.5 average cost

$4 marginal cost

$5 marginal revenue x 2000 units=$10.000

(-) $3.5 x 2000 units                        =$7.000

_____________________________________

Profit                                                  =$3000

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Procuring materials and refining those materials into finished projects to distribute to retail outlets are activities handled b
Tom [10]

Answer: Supply chain

Explanation:

The function of a company's supply chain is to take charge of the production of finished goods from raw materials, the distribution of the goods to various customers or retailers and also resolving customers complaints as regards the company's product.

4 0
3 years ago
hiller Corporation has the following sales forecasts for the selected three-month period in 2018: Month Sales July $24,000 Augus
IrinaK [193]

Answer:

$15,400

Explanation:

Given

70% of sales are collected in the month of the sale, and the remainder are collected in the following month.

Considering the month of July with Accounts receivable balance (July 1, 2018) $20,000

Sales = $24,000

Cash collected = 20000 + (70% × 24000)

                         = 20000 + 16800

                         = $36,800

Account receivable balance (1 August, 2018)

= 30% × 24000

= $7,200

For the month of August

Sales = $14,000

Cash collected = 7200 + (70% × 14000)

                         = 7200 + 9800

                         = $17,000

Account receivable balance (1 September, 2018)

= 30% × 14000

= $4,200

For the month of September,

Sales = $16,000

Cash collected = 4200 + (70% × 16000)

                         = 4200 + 11200

                         = $15,400

The total cash collected from Sales which is made of 30% from the previous month's sales and 70% of September sales is $15,400

6 0
3 years ago
A teacher is purchasing supplies for the classroom and has three discounts to apply to the purchase one at a time. First discoun
Vesnalui [34]
The teacher will pay $143.18
8 0
2 years ago
When the perpetual inventory system is used, the inventory sold is debited to a.Supplies Expense b.Cost of Goods Sold c.Sales d.
Luda [366]

Answer:

The answer is D. Inventory account.

Explanation:

Perpetual inventory method is very useful as it is updated daily and gives a real-time insight into the stocks unlike in the periodic inventory system where you calculate the stock at the end of a certain period.

8 0
3 years ago
RKO Company sold bonds with a face value of $850,000 for $910,000. The bonds have a coupon rate of 8 percent, mature in 10 years
Alex73 [517]

Answer:

cash                910,000 debit

  bonds payable                 850,000 credit

  premium on BP                  60,000 credit

-- to record issuance of bonds --

interest expense 63700 debit

amortization                 4300 credit

cash                       68000 credit

--to record coupon payment at December 31th--

Explanation:

issuance:

cash proceed of 910,000 face value of 850,000 the 60,000 difference wil be a premium.

interest entry:

we multiply the carrying value of the bonds by the market rate

we calcualte the cash procees as ussual: face value x bond rate

the difference wil be the amortization on premium

910,000 x 7%  63,700

850,000 x 8% 68,000

amorization       4,300

5 0
3 years ago
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