Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit
Explanation:
If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.
If they did that, revenue would be $7,425
Expenses would be wages and fixed costs:
= Wages + fixed costs
= (45 workers * wage rate) + 1,500
= (45 * 105) + 1,500
= $6,225
Economic profit would be:
= 7,425 - 6,225
= $1,200
Answer:
C. Compensatory damages and consequential damages.
Explanation:
The reason is that the company can only sue Santa for its compensatory damage of paying 15% extra and consequential damages which are only claimable if the party to contract knows that not performing the contract will contribute to consequential damages which are here losses of sales which amount to 25% of sales.
Answer:
Product or service profiling.
Explanation:
Product or service profiling is the term used to describe the linking of key product or service requirements to process capabilities.
Generally, most organizations and business owners use the product or service profiling strategy to enhance consistency through the identification of their key services or product line and as such are avail the opportunity to select the appropriate process, procedures and techniques to achieve their goals and objectives successfully.
Answer:
The Total Budgeted Sales of May is $944,000
Explanation:
Budgeted sales are those sales which a business estimated in a particular period of time. While budgeting the future value company calculated the sales cost and other expenses to minimize the uncertainty and prepare for the future.
As per given data
In May
Budgeted sales Volume = 3,200 cookwares
Budgeted price per unit = $295
Budgeted Sale value = Budgeted Volume x Budgeted Sales price = 3,200 cookwares x $295 = $944,000
Cash Sales = $944,000 x 25% = $236,000
Credit Sales = $944,000 x 75% = $708,000
