If the marginal product for that employee is greater than for the previous employee hired, it must be that there are gains from specialization
<h3>
What is marginal product ?</h3>
- The marginal product or marginal physical productivity of an input (factor of production) in economics, and particularly neoclassical economics, is the change in output that results from using one more unit of a specific input (for example, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant.
- The marginal product is the mathematical derivative of the production function with respect to that input if the output and the input are infinitely divisible, in which case the marginal "units" are infinitesimal.
- When more of one input, such as labor, is used while maintaining a constant level of the other input, such as capital, the marginal product initially rises according to the "rule" of declining marginal returns.
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Contribution for Standard is $30 per unit and Supreme is $60 per unit, Thus if Fixed expenses are first divided between the two products on the basis of Contribution per unit, It can be calculated as below:
Fixed Expense Bifurcated on basis of Contribution per unit= 30:60
Which Comes to 1:2
Thus it will be bifurcated as $1200000 for Supreme and $600000 for Standard
Thus for Standard to break even it Requires to Sell the below no of units:
Break Even Point in units=
Break Even Point in units=
Break even points in units=20000 units
Answer:
Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.
Explanation:
The given problem seems to be incomplete. Find the attachment of the complete question below.
Given:
Direct material,
= $8.70
Direct labor,
= 24.70
Overhead,
= 43.50
Now,
If the offer is accepted, the cost per unit will be:
= 
= 
=
($)
Thus the above is the correct answer.
Answer:
Ms. Z should invest in the State A.
Explanation:
Coupons from State A = (1 - 0.33)*0.05*75000
= 2512.5
Coupons from State R = (1 - 0.33 - 0.085)*.054*75000
= 2369.25
Therefore, Ms. Z should invest in the State A .
Answer:
-9.92%
Explanation:
P₀ = Div₁ / (Re - g)
- Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
- Re = cost of equity = ?
- P₀ = current stock price = $62.91
- g = dividend's growth rate = -11.5%
Re = (Div₁ / P₀) + g
Re = ($0.9912 / $62.91) - 11.5%
Re = 1.58% - 11.5% = -9.92%
Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.