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jarptica [38.1K]
3 years ago
7

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost i

s $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. If 300,000 machine hours had been worked last year, what would be the total machine maintenance cost
Business
1 answer:
Pachacha [2.7K]3 years ago
7 0

Answer:

$570,000

Explanation:

Total machine maintenance cost calculation.

Depreciation expenses $20,000

Operating cost

($275,000 MH × $2). $550,000

Total machine machine maintenance cost $570,000

Therefore, the total machine maintenance cost of the machine is $570,000

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Oduvanchick [21]

The price elasticity of the loan taken by the entrepreneur comes out to be 10.

<h3>What is the price elasticity of demand?</h3>

The price elasticity of demand is an indicator used to determine the sensitivity of demanded quantity with respect to its corresponding price.

Given values:

Change in quantity demanded: 50%

Change in price: 5%

Computation of price elasticity of demand:

\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=\frac{\rm\ Change \rm\ in \rm\ quantity \rm\ demanded}{\rm\ Change \rm\ in \rm\ price} \\\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=\frac{50\%}{5\%} \\\rm\ Price \rm\ elasticity \rm\ of \rm\ business \rm\ loan=10

Therefore, when the change in quantity demanded is 50% with the change in the price is 5%, then the price elasticity of a business loan is equal to 10.

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