Answer:
$5100
Explanation:
The cost of the inventory in $25000 and the cost of shipping it to the consignee, $500.
The cost of marketing brochures an comissions are recognized as expense and do not affect inventory. If 80% of the inventory was sold, 20% remains, which will have a carrying value of $25,500 X 20% = $5100
A franchise can be used.
<h3><u>
Explanation:</u></h3>
Franchise refers to the authorization that is given by the government for involving in commercial activities. It is the permission that is obtained legally for using the ideas, expertise and processes of some one else with their permissions.
In the example given, a firm is willing to provide all necessary materials for the preparation of coffee and wants to penetrate the European market. The company here provides all the equipment, ingredients, trademarks and operating systems and hence it can make use of franchise type of strategy.
<span>The answer is C. It means that more people are unemployed or underemployed.
Subsistence Agriculture means that the farmers only grow enough food to feed their families. They don't grow extra food to sell. This is a sign of a less developed country, because the family members are using their time and resources to care for themselves and are not working outside of the home. Therefore they will be unemployed or underemployed.</span>
Answer:
The indifference point is 5,895 units
Explanation:
Giving the following information:
In-house:
Unitary variable cost= $11.5
Fixed cost= 30,000
Buy:
Unitary variable cost= $16.25
Fixed cost= 2,000
<u>To calculate the indifference point, we need to establish the total cost formulas for each option:</u>
In-house:
Total cost= 30,000 + 11.5x
x= number of units
Buy:
Total cost= 2,000 + 16.25x
x= number of untis
<u>Now, we equal both formulas and isolate x:</u>
30,000 + 11.5x = 2,000 + 16.25x
28,000 = 4.75x
5,895 = x
The indifference point is 5,895 units
Answer:
The answers are:
1. combined producer surplus = $69
2. Alice and Amber (b)
Explanation:
A producer surplus is the difference between how much a producer sells a product in the market, and how much he is willing to sell the product for, if the market price is higher than the price he was willing to sell the product for.
The combined producer surplus of the ladies is the sum of their individual producer surpluses, and it is calculated as follows;
Alice: willing price = $35, market price = $70, therefore surplus
= 70 - 35 = $35
Amber: willing price = $38, market price = $70, ∴ surplus = 70 - 38 = $32
Andy: willing price = $68, market price = $70, ∴ surplus = 70 - 68 = $2
Combined producer surplus = 35 + 32 + 2 = $69
b. In this case the price of the 5 inch pot in the market is $45, Alice and Amber will sell their pots because the price in the market exceeds their willing price of $35 and $38 respectively and they will make producer surpluses of $10 and $7 respectively, but Andi on the other hand will not sell her pot because if she does, she will make a loss, as her willing price is $68 and the market price is $45, if she goes ahead to sell she will incur a loss of $23.
