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3 years ago

Presented below is financial information for two different companies.

Business

1 answer:

riadik2000 [5.3K]3 years ago

8 0

Answer: See explanation

Explanation:

The missing amounts are gotten below:

Sales revenue:

May company = 90,000

Reed company = 107,000

Sales returns

May company = 300

Reed company = 5,000

Net sales

May company = 87,000

Reed company = 102,000

Cost of goods sold

May company = 56,000

Reed company = 60,500

Gross profit

May company = 31,000

Reed company = 41,500

Operating expenses

May company = 15,000

Reed company = 26,500

Net income

May company = 16,000

Reed company = 15,000

Then, the gross profit rate would be calculated as:

= Gross Profit/Net sales

For May company, this will be:

= 31,000/87,000

= 0.36

= 35.6%

For Reed company, this will be:

= 41,500/102,000

= 0.47

= 40.7%

Note that some of the formula used to solve the above question include the net sales which is the difference between the sales and sales return.

Gross profit is the difference between the net sales and the cost of the goods sold

Net income is the difference between the gross profit and the operating expenses

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An example of contractionary fiscal policy is:

Katyanochek1 [597]

Answer:

The correct answer is option d.

Explanation:

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3 years ago

Which of the following statements about mechanistic organizations istrue?

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1 year ago

Differentiated goods Rather than identical goods, now the two firms are producing differentiated goods, with each behaves as the

Yanka [14]

Answer:

Equilibrium prices are p1 = 150 and p2 = 100, while equilibrium quantities are q1 = 150 and q2 = 5

Explanation:

To provide solution to this question, the two market demand functions to be restated correctly as follow:

q1 = D1(P1,P2) = 110 – p1 + 2p2 .................................... (1)

q2 = D2(p1,P2) = 55 – 2p2 + P1 ................................... (2)

Since, total revenue revue (TR) is the multiplication of price, p, and quantity, q, the TRs for q1 (TR1) and for q2 (TR2) are obtained by multiplying equation (1) by p1 and equation (2) by p2 as follows:

TR1 = p1*q1 = p1(110 – p1 + 2p2)

TR1 = p110 – p1^2 + 2p1p2 .................................... (3)

TR2 = p2*q2 = p2(55 – 2p2 + p1)

TR2 = p2(255) – 2p2^2 + p1p2 ................................... (4)

Marginal revenue for q1 (MR1) and for q2 (MR2) are obtained by partially differentiating equation (3) with respect to p1 and equation (2) with respect to p2 and then solve for p1 and p2 as follows:

MR1 = dTR1/dp1 = 110 – 2p1 + 2p2 .................................... (5)

MR2 = dTR2/dp2 = 55 – 4p2 + p1 ................................... (6)

In monopolistic competitive market with differentiated goods, equilibrium occurs where MR = MC. Since,

MC1 = 10 ..................................................................................... (7)

MC2 = 5 ...................................................................................... (8)

We will therefore equate equations (5) with equation (7) and also equate equation (6) with equation (8), and then solve for p1 and p2 as follows:

For MR1 = MC1:

110 – 2p1 + 2p2 = 10

2p1 = 110 - 10 + 2p2

p1 = (100 + 2p2)/2

p1 = 50 + 2p2 ....................................................................... (9)

For MR2 = MC2:

255 – 4p2 + p1 = 5

4p2 = 55 - 5 + p1

p2 = (50 + p1)/4

p2 = 12.5 + p1/4 ................................................................ (10)

Now, substitute equation (10) for p2 in equation (9) and solve for p1 as follows:

p1 = 50 + 2(12.5 + p1/4)

p1 = 50 + 25 + 0.5p1

p1 - 0.5p1 = 75

p1 = 75/0.5

p1 = 150 .......................................................................... (11)

substitute equation (11) into equation (10) for p1 and solve for p2 as follows, we have:

p2 = 62.5 + 150/4

p2 = 62.5 + 37.5

p2 = 100 ............................................................... (12)

The p1 and p2 in equations (11) and (12) are the equilibrium prices for q1 and q2 respectively.

To get equilibrium quantity, substitute p1 = 150 and p2 = 100 into equations (1) and (2) as follows:

q1 = 110 – 150 + 2(100)

q1 = – 50 + 200

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q2 = 55 – 2(100) + 150

q2 = 55 + 150 - 200

q2 = 5 ....................................... (5)

Therefore, equilibrium prices are p1 = 150 and p2 = 100, while equilibrium quantities are q1 = 150 and q2 = 5.

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4 years ago

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Lady_Fox [76]

Answer:

Explanation:

GIving the following information:

The company applies all of its overhead costs to jobs based on direct labor-hours.

At the beginning of estimates:

Labor-hours required to support estimated output 30,000.

Fixed overhead costs $405,000.

Variable overhead cost per direct labor-hour $1.00.

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=

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Direct materials $619

Direct labor $113

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