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Rasek [7]
2 years ago
9

A firm produces bicycles using two inputs: bicycle frames (F) and bicycle wheels (W). By definition, one bicycle has 2 wheels an

d 1 frame. One frame costs $75, and 1 wheel costs $50. The firm is currently producing 100 bicycles per month. If the price of wheels doubles to $100 each, the cost minimization of producing 100 bicycles is now $_____.
Business
1 answer:
grin007 [14]2 years ago
7 0

Answer:

C(100) = (75 x 100) + (200 x 100) = $27,500

Explanation:

the initial cost function of producing bikes is:

C(x) = 75F + 100W

the initial cost to produce 1 bike = $75 + $100 = $175

if the cost of wheels increase to $100 each, then the cost function is:

C(x) = 75F + 200W

in this case, there is not much to calculate since every bicycle must have 1 frame and 2 wheels, that means that in order to produce 100 bicycles you will necessarily need 100 frames and 200 wheels. Labor is not considered in this cost function, so any cost minimization strategy is limited to using the minimum amount of parts:

C(100) = (75 x 100) + (200 x 100) = $27,500

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Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$10 par value, 10
melisa1 [442]

Answer:

Kohler Corporation

Journal Entries:

Jan. 2:

Debit Treasury Stock $45,000

Debit Paid-in Capital In Excess of Par $67,500

Credit Cash Account $112,500

To record the purchase of 4,500 shares of its own stock at $25 per share.

Jan. 5:

Debit Dividends $71,000

Credit Dividends Payable $71,000

To record the declaration of $2 per share cash dividend.

Feb. 28:

Debit Dividends Payable $71,000

Credit Cash Account $71,000

To record the payment of cash dividend on 35,500 shares at $2 per share.

July 6:

Debit Cash Account $48,952

Credit Treasury Stock $16,880

Credit Paid-in Capital In Excess of Par $32,072

To record the sale of treasury stock shares at $29 per share.

Explanation:

a) Data and Calculations:

Common stock—$10 par value, 100,000 shares authorized,

40,000 shares issued and outstanding $ 400,000

Paid-in capital in excess of par value,

common stock                                             60,000

Retained earnings                                      460,000

Total stockholders' equity                      $ 920,000

b) The purchase on Jan. 2 of its own stock of 4,500 shares, the cash receipt is credited to the Cash Account while the Treasury Stock is debited, but only with the par value of the repurchased shares if the par value method is adopted.  If the costing method is adopted, the value to be debited to the Treasury Stock account would have $112,500 without any debit to the Paid-in Capital In Excess of Par.  This is also followed when the sale of 1,688 treasury shares at $29 per share takes place on July 6, but with opposite entries.

c) To compute the dividend payable, the treasury stock shares of 4,500 are deducted from the outstanding shares of 40,000.  This means that the shareholders of record have shares outstanding totalling 35,500 (40,000 - 4,500).

d) The general journal is used in these cases to record the transactions initially in the books of Kohler Corporation.  They show the accounts to be debited and the others to be credited, since two accounts or more are usually involved in any business transaction.

4 0
3 years ago
Which is true of someone with a low credit score? I. They probably make on time payments. II. They may not be able to rent the a
Tju [1.3M]
I think its number two but im not entirely sure
8 0
2 years ago
Read 2 more answers
2. Marcus Gardner is buying a new computer
kompoz [17]

Answer:

A $155.94

Explanation:

A down payment is an initial payment that is paid cash to the buyer. It is the same as the deposit. Marcus must have been buying the compute of credit. The down payment or deposit shows that the customer is serious about buying the item.

The deposit that Marcus paid is 12%.

The cost of the new computer is $1,229.50

The deposit will be 12% of $1,229.50

=12/100 x $1,229.50

=0.12 x $ 1,229.50

=$155.94

4 0
3 years ago
Happy​ Trails, Inc. manufactures railway coaches and uses the FIFO method of process costing to record costs. The Workminusinmin
sertanlavr [38]

Answer:

80 % of materials ;  43 % of conversion costs

Explanation:

The FIFO method traces equivalent units for materials and conversion costs for the following categories :

  1. Opening Work in Process units
  2. Units started and completed
  3. Ending Work in Process units

So the units not completed from last months are the first to be completed during the month (hence To finish Opening Work in Process). During the year there are units started and completed (hence Units Started and Completed) and units started that never gets completed (hence Ending Work in Process units).

All these physical units need to be expressed to the percentage of work done on them - equivalent units.

The question is focusing on Number 3 - Ending Work in Process units. So 80 % of materials and 43 % of conversion costs were added during October for these units.

4 0
3 years ago
Austin and Erin are willing to pay $10 and $9, respectively, for a ticket to a screening of a new movie. What is the total consu
Rina8888 [55]

Answer:

B) $7

Explanation:

The computation of the consumer surplus is shown below:

Consumer surplus = Willing to pay - Market price

For Austin, The consumer surplus = $10 - $6 = $4

For Erin, The consumer surplus = $9 - $6 = $3

So, the total consumer surplus = $4 + $3 = $7

Simply we deduct the market price from the willing to pay so that the consumer surplus can be computed

8 0
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