All categories

3 years ago

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Business

1 answer:

vfiekz [6]3 years ago

3 0

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

a) Influence diagram to calculate profit

attached below

b) derive a mathematical model for calculating profit.

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c) attached below

d) If Cox Electrics makes 12,000 units of the new product

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

= ( R * q ) - ( Fc + ( Vc * q ) )

= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

= -$5200

You might be interested in

Most of the NFL teams are in the Eastern part of the United States.

arlik [135]

I believe they are, good job

8 0

3 years ago

A firm has a marginal cost of $20 and charges a price of $40. The Lerner index for this firm is:________.

zhuklara [117]

Answer:

The correct answer is:

0.50 (B)

Explanation:

The Lerner index is used by monopolists to measure market/monopolist power, and it is defined as the percent markup of price over marginal cost.

It is given by the formula:

$L = \frac{P - MC}{P}\\where:\\L = Lerner\ index\\P = price = \$40\\MC = marginal\ cost = \$20\\\\L = \frac{40\ -\ 20}{40} \\L = \frac{20}{40}\\ L = 0.5$

Note: in a perfectly competitive market, L = 0, which makes Price = Marginal cost in the equation above. But in a competitive market, it is always the case that L ≥ 0

7 0

3 years ago

McGregor allows customers to pay with credit cards. the company charges McGregor 3% of the sale. when a customer uses a credit c

KengaRu [80]

Charge a total of $206

6 0

3 years ago

In a period of rising prices, the inventory method which tends to give the highest reported net income is:

Blizzard [7]

Answer:

b. first-in, first-out.

Explanation:

Generally, there are three methods for estimating the inventory shown below:

1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones

2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase

3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.

4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory

In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.

7 0

3 years ago

Serene City enacts an ordinance that bans the use of "sound amplifying systems" on public streets. Tyler wants to campaign for a

svp [43]

Available options are:

a. constitutional under the First Amendment.

b. an unconstitutional restriction of speech.

c. necessary to protect national interests.

d. justified by the need to protect individual rights

Answer:

Option A. Constitutional under the First Amendment.

Explanation:

The First Amendment gives several rights to the people of United which includes the freedom of religion, speech, press and filing of the petition in the courts. The court will look into the case whether or not the speech which the Tyler wants to broadcast endangers the security of United States or that the action threatens the rights of the peope (Tyler's supporters broadcast message at mid night within the city).

3 0

3 years ago