Suppose the country of montgomery has specialized in the production of a good but has not yet entered into trade. At this point in time, montgomery has <u>moved along its existing production possibilities curve.</u>
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A production posibilities curve in economics measures the maximum output of goods and the use of a fixed quantity of input. The input is any aggregate of the four elements of manufacturing: natural resources (which include land), hard work, capital goods, and entrepreneurship.
for example, say an economic system produces 20,000 oranges and 12000 apples. On the chart, it truly is point B. If it desires to produce greater oranges, it ought to produce fewer apples. In the chart, factor C suggests that if it produces 45,000 oranges, it could most effectively produce 85,000 apples.
By means of describing this trade-off, the curve demonstrates the idea of possible price. Making greater than 1 precise will price society the opportunity of making greater of the other excellent.
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Answer:
decrease in the operating income of $132,100
Explanation:
The computation of the impact on the operating income should be given below:
Sales $1,050,000
less: variable cost -$860,000
contribution margin $190,000
Less fixed cost (30% of $193,000) -$57,900
Impact on operating income $132,100
So there is a decrease in the operating income of $132,100
Answer:
Communication is the key to success. Plan, organize and strategically plan to help the business
Explanation:
Communication helps in
1. Increasing brand familiarity
2. Increasing product awareness
3. Product availability
4. Offers
These will help improve business.
The value of what you forgo in order to attend the party is known as the opportunity cost. due to you Normally studying at home, the advantage of the party outweighs the potential cost (such as a greater that you would have learned from studying that evening (for homework or a test).
<h3>What is meant by opportunity cost?</h3>
In other terms, opportunity cost is the other option or opportunity you must forgo in order to pursue your preferred alternative. It is, to put it simply, what we have to give up in order to act.
For instance, if you attend your friend's birthday celebration, you will undoubtedly miss your preferred study period for the exam the following day. This may result in a gorgeous crimson "F" on your exam paper, which would be a terrible loss. For this reason, sane people who are aware that they are not intelligent enough to review for the test while intoxicated in five minutes typically opt to stay at home and study. The inability to study for your exam in this instance is a lost opportunity.
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Answer and Explanation:
a. The computation of operating profit is shown below:-
Profit per unit = Purchase price from outside per unit + variable cost of production internally
= $15 - $7
= $8
Total increment in operating profit = Profit per unit × Total number of units
= $8 × 24,000
= $192,000
b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)
c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit
