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pishuonlain [190]
2 years ago
14

Waterproof Roofing Company has provided the following​ information:

Business
1 answer:
Katyanochek1 [597]2 years ago
4 0

Answer:

(D) Operating income will increase by​ $27,300.

Explanation:

The sales increase will also generate an increase in the variable cost

The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.

So the operating income will increase by the diffrence between sales and variable cost

sales increase will be:

779,000 x 10% = 77,900

variable cost increase:

506,000 x 10% = 50,600

increase in operating income 77,900 - 50,600 = 27,300

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An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts a
cupoosta [38]

Answer:

a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270

b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300

Explanation:

a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.

Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:

Now, profit foregone is calculated as per the table below:

Figures in $

Particulars Revenue Cost Profit

Incline        1400          600 800

Bridge         1500 950  550

Campground 2700 1200 1500

Total        5600 2750 2850

Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.

Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone

= 700*5 + 2850 = $6,350

Hence, minimum transfer price (per home) should be = 6350/5 = $1,270

b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.

4 0
2 years ago
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate
Vaselesa [24]

Answer:

Check the explanation

Explanation:

Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.

This will reduce the cost of production of American Producers and would increase their profit-margin.

This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.

So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.

Kindly check the attached image below to see the required graph -

4 0
3 years ago
What is 101x9 please answer
Nataly [62]
101
x  9
-------
 909 

Thats how ill explain how to solve that problem.

 
3 0
3 years ago
Read 2 more answers
What would be the best tool to display the following information from a basketball game? Eric had 21 points, 3 rebounds, and 1 a
vovangra [49]
Probably a T-chart would be best
8 0
3 years ago
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equili
Sonja [21]
D is the correct Answer bro
7 0
3 years ago
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