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sweet [91]
4 years ago
7

Drew Cane Products, Inc., processes sugar cane in batches. The company buys a batch of sugar cane from farmers for $90 which is

then crushed in the company's plant at a cost of $11. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $21 or processed further for $13 to make the end product industrial fiber that is sold for $45. The cane juice can be sold as is for $41 or processed further for $29 to make the end product molasses that is sold for $103.
What is the financial advantage (disadvantage) for the company from processing one batch of sugar cane into the end products industrial fiber and molasses rather than not processing that batch at all?
Business
1 answer:
KatRina [158]4 years ago
7 0

Answer:

The financial advantages from further processing the batch into two end products is $44.

Explanation:

- The financial advantages from further process can fiber into industrial fiber is calculated as:

  + Price of industrial fiber - price of can fiber - cost of further process into industrial fiber = 45 - 21 - 13 = $11.

- The financial advantages from further process can juice into molasses is calculated as:

  + Price of molasses - price of molasses - cost of further process into molasses = 103 - 29 - 41 = $33.

The total financial advantages from further processing the batch into two end products is calculated as: The financial advantages from further process can fiber into industrial fiber + The financial advantages from further process can juice into molasses = 11 + 33 = $44.

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Damm [24]
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Year-end shares worth = 680 shares * $2.20 ($1,496)
Loss of shares = $7,480 - $1,496 ($5,984)

OR

Loss in shares price= $11.00 - $2.20 ($8.80)
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Barney can deduct $5,984 as the amount of loss of this year.
4 0
3 years ago
Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If sean charge
pochemuha

The answer is $7 because Marginal revenue is the change in total revenue from 10 customers ($400) to 11 customers ($407)  How a monopolist maximizes profits

How does a monopolist determine its profit-maximizing level of output How does it determine the price that it charges?

The monopolist will select the profit-maximizing level of output where

                                      MR = MC

and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

How a monopolist maximizes profits

 Because Chuck, a sole commercial airplane operator in small isolated town, has no  competition, he has complete control of market price of air travel in his small tone

 Reduced price → increase in ticket sales

 Monopoly maximizes profit by choosing an amount of profit in which marginal revenue  equals marginal cost (MR= MC)  Since Chuck must reduce his price to sell more units, he has an incentive to sell a  smaller quantity than a perfective competitive company

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brainly.com/question/10822075

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3 0
2 years ago
Turbo Technology Corp. recently went public with an initial public offering of 3.03 million shares of stock. The underwriter use
Leokris [45]

Answer:

$8.23 per share

Explanation:

Total funds received by Turbo = (3.03 million shares x $ 7.65 per share) - $230,000

= $23,179,500 - $230,000 = $22,949,500

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Gross Proceeds = (Gross Proceeds * 0.07) + $7.65 per share

(Gross Proceeds – 0.07 Gross Proceeds) = $7.65 per share

Factorize gross proceeds mathematically to get

Gross Proceeds (1-0.07) = $7.65 per share

Gross Proceeds (0.93) = $7.65 per share

Gross Proceeds = \frac{7.65}{0.93}

Gross Proceeds = $8.23 per share

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zimovet [89]

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