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Bas_tet [7]
3 years ago
7

A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per uni

t. At current output level, the marginal product of labor is 40 truffles and the marginal product of capital is 60 truffles. To reduce the total cost of producing the current quantity of truffles, how should the firm change its spending on labor and capital
Business
1 answer:
posledela3 years ago
7 0

Answer: See explanation

Explanation:

With the information given in the question, the firm should change its spending on labor and capital by increasing its labor and at thesame time, also reducing capital.

This is because since the marginal product of labor is 40 truffles and the price of labor is $10 per unit, it means that 4 truffles/dollar is being spent on labor, while for capital, 3 truffles/dollar is being spent.

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<span>Bart should consult a small business development office where he can have the technical assistance in searching for desired site for his business as well as other technical issues can be resolved. He can also use site selection software to personally make sure the right kind of features and choices for his site.</span>

8 0
4 years ago
Merone Company allocates materials handling cost to the company's two products using the below data:Modular Homes Prefab Barns T
Amiraneli [1.4K]

Answer:

$167,098

Explanation:

The computation of the total materials handling cost allocated to the modular homes is shown below:

= Total material handling cost × expected modular homes ÷ total expected material moves

= $210,420 × 540 ÷ (540 + 140)

= $167,098

6 0
3 years ago
On September 1, 2016, Sam's Shoe Co. Issued $390,000 of 10% bonds. The bonds pay interest semiannually on January 1 and July 1 o
Leni [432]

Answer:

Explanation:

It is given that the bonds were sold at the face amount which is 390,000

This means that Sam's Shoe Co. received 390,000 because of the issue of bond

8 0
4 years ago
How long does it take an investment to quadruple in value if the investment yields 6% per year?
NikAS [45]

Answer:

  • <u>24 years</u>

<u></u>

Explanation:

If<em> the investment yield 6% per year</em>, each year its value is multiplied by 1.06.

After 2 years, the value is multiplied by 1.06², after 3 years it is multiplied by 1.06³, and so on.

After n years, the value is multiplied by 1.06ⁿ.

You want that <em>the investment quadruples</em>, thus the multiplicative factor is 4, meaning that you want to solve for:

  • 1.06ⁿ = 4

If you do not know logarithms, you can solve by succesive iterations:

  • 1.06² = 1.1236
  • 1.06⁴ = 1.2625
  • 1.06¹⁰ = 1.79
  • 1.06²⁰ = 3.2
  • 1.06³⁰ = 5.7
  • 1.06²⁵ = 4.29
  • 1.06²⁴ = 4.05
  • 1.06²³ = 3.82

Thus, <em>if an investement yields 6% per years</em>, it takes 24 years t<em>he investment to quadruple in value.</em>

If you know logarithms, you can make n the subject of the equation:

       1.06^n=4\\\\n\log 1.06=\log 4\\\\n=\dfrac{\log 4}{\log 1.06}=23.79\approx 24

Again, the solution is 24 years.

4 0
3 years ago
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar b
padilas [110]

Answer

Financial advantage from further processing    $31

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

<em>                                                                                                     $</em>

Sales revenue after the split off point( 64+64)                       128

Sales revenue at the split-off point (16+47)                            <u> 63</u>

Additional sales revenue                                                          65

Further processing cost ( 15+19)                                              <u>(34 )</u>

<em>Net income after further processing                                        31</em>

Financial advantage from further processing    $31

4 0
4 years ago
Read 2 more answers
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