Answer:
a) Y = 500
b) Wages: 2.5
Rental price: 2.5
c) labor Share of output: 0.370511713 = 37.05%
Explanation:
if K = 100 and L = 100
Y = 500
wages: marginal product of labor = value of an extra unit of labor
dY/dL (slope of the income function considering K constant while L variable)
With K = 100 and L = 100
Y' = 2.5
rental: marginal product of land = value of an extra unit of land
dY/dK (slope of the income function considering K variable while L constant)
L = 100 K = 100
Y' = 2.5
c) we use logarithmic properties:
50 was the land while 10 the labor
2.698970004 = 1.698970004 + 1
share of output to labor: 1/2.698970004 = 0.370511713
Answer:
b. Dr Production overhead control a/c Cr Material control account.
Explanation:
Indirect material in the production process is defined as those input that cannot be directly traced to the product. They are different from direct materials like raw materials that are used to make the product.
Indirect materials are classified as overhead.
The double entry for issue of indirect materials is:
Debit production overhead
Credit raw materials inventory (material control account)
Note direct production materials and indirect production materials are credited to material material control account on purchase.
Answer:
E) $2,400
Explanation:
optimal order quantity = sqrt{(2*D*S)/H}
= sqrt{(2*36,000*$80)/$4}
= $1,200
number of orders per year = $36,000/$1,200
= $30
total ordering cost = $30*$80
= $2,400
Therefore, The total ordering cost of inventory is $2,400.
Answer:
Total PV= $15,103.49
Explanation:
Giving the following information:
Cf1= 4,500
Cf2= 5,700
Cf3= 8,000
Discount rate= 9%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= FV/(1+i)^n
Cf1= 4,500/(1.09)= $4,128.44
Cf2= 5,700/1.09^2= $4,797.58
Cf3= 8,000/1.09^3= $6,177.47
Total PV= $15,103.49
Answer:
If American produces the new compound, profit will increase by $88,000
Explanation:
increase in selling price = selling price of new variant of chemical - selling price of chemical compound
= $83 - $52
= $31
Net increase in profit = total increase in selling price - additional processing cost
= $31*8000 - $160000
= $248000 - $160000
= $88,000
Therefore, If American produces the new compound, profit will increase by $88,000.
net increase in profit =
