Nathan is a sales rep who, based on last year, averaged $2,200 of monthly commission before taxes. He should include
1 answer:
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Answer:
increased in budget = $98000
correct option is A $98000
Explanation:
given data
produce = 20,000 units per month
variable costs = $392,000
fixed costs = $242,000
increases production = 25,000 units
to find out
how much will they have to increase their budget
solution
we get here total cost or present budget that is
total cost = variable cost + fixed cost
total cost = $392000 + $242000
total cost = $634000
and
variable cost per unit will be here
variable cost per unit =
variable cost per unit =
variable cost per unit = 19.6
and
variable cost for increased production = increases production × variable cost per unit
variable cost for increased production = 25000 × 19.6
variable cost for increased production = 490000
and
total cost of increased production = fixed cost + variable cost for increased production
total cost of increased production = $242000 + $490000
total cost of increased production = $732000
and
increased in budget = $732000 - $634000
increased in budget = $98000
correct option is A $98000
Answer:
a. increasing opportunity costs as more and more of one good is produced
Explanation:
A production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.
The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.
If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.
The attached image is the graph of a production possibility frontier. At point A, the maximum amount of good X is produced with zero quantity of good Y. To increase production of good Y and move to point B, some quantities of good X would be given up. To further increase the production of good Y and move to point C, even more quantities of good X would be given up.
I hope my answer helps you
