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UNO [17]
3 years ago
11

Auto Shoppe is considering the purchase of a new engine computer code reader for $30,000. Auto Shoppe can charge $50 for the ser

vice of reading the codes from a single car engine, while the actual cost of the reading would only be $10 per car engine. Suppose that the manager of Auto Shoppe is concerned about this purchase, and has stated that if Auto Shoppe were to buy the new engine computer code reader, "..the machine needs to pay for itself by the time we use it to read the codes of 200 car engines." The manager says this is because, "…those sorts of engine computer code readers go out of date very quickly, so if we don’t get our money back soon, we will probably just wind up replacing the machine before it ever breaks even." What would Auto Shoppe need to charge for the service of reading each car engine, to just break-even when it reads the codes from 200 car engines?
Business
1 answer:
Jobisdone [24]3 years ago
3 0

Answer:

Auto Shoppe

For Auto Shoppe to just break-even when it reads the codes from 200 car engines, it would charge $160 for the service of reading each car engine.

Explanation:

a) Data and Calculations:

Fixed cost of new engine computer code reader = $30,000

Service charge for reading the code from a single car engine = $50

Variable cost of reading per car engine = $10

Number of engines to read their codes = 200

To break-even, total costs must equal total revenue

Total costs = Fixed costs + Variable costs

= $30,000 + $10 * 200

= $32,000

Therefore, revenue should be equal to $32,000

The amount to charge in order to break-even is:

= $160 ($32,000/200)

b) This implies that to break-even at $50 selling price, the number of engines should be increased to 750 ($30,000/$40).  This is because the contribution margin per unit = $40 ($50 - $10) and the fixed costs = $30,000.

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When the government imposes price floors or price​ ceilings, A. some people​ win, some people​ lose, and there is a loss of econ
xxTIMURxx [149]

Answer:

The answer is: A) some people​ win, some people​ lose, and there is a loss of economic efficiency.

Explanation:

When the government imposes a price ceiling, some consumers win since they buy cheaper products (lower than equilibrium price) but suppliers lose. Inf the government decides a price floor is better, then customers will lose and some suppliers will win (prices are higher than equilibrium price).

Both price ceilings and price floors cause deadweight loss, decreasing economic efficiency.

5 0
3 years ago
Heidi quit her job as a chef making $40,000 per year to start her own restaurant. The first year, Heidi's restaurant earned $100
Murrr4er [49]

Answer:

The accounting profit is $30,000.

Explanation:

The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.  

The revenue earned from the restaurant is $100,000.  

The explicit costs is  

= $50,000 + $20,000

= $70,000  

An accountant will consider only the accounting cost or explicit cost in the calculation of profits.  

Accounting profit

= Total revenue - Explicit costs

=  $100,000 - $70,000  

= $30,000  

3 0
3 years ago
Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000, Long-term Liabilities of $220,000 and Own
Stels [109]

Answer:

$205,000

Explanation:

Total liabilities=current liabilities+long-term liabilities

total liabilities=$150,000+$220,000

total liabilities=$370,000

total owners'equity plus liabilities=$320,000+$370,000=$690,000

long-term assets+current assets=liabilities+owners'equity

long-term assets=$485,000

current assets are unknown

liabilities+owners'equity=$690,000

let CA represent current assets

$485,000+CA=$690,000

CA=$690,000-$485,000

CA=$205,000

3 0
2 years ago
For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, th
aksik [14]

Answer:

A)Interest-rate effect

B)Real-balances effect

Explanation:

✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance

As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is

When the price level decreases, restaurants become busier as more people purchase restaurant meals.

3 0
2 years ago
What type of interest will earn you the most amount on your money?
kirill [66]
1=A
2=D
3=C
4=A
5=C
6=C
7=D
8=A
9=C
10=D
11=C
12=A
13=C
14=B

8 0
3 years ago
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