Answer:
d. $5,225 profit.
Explanation:
After accepting the offer total sales would be = 183750 (5500*8)
183.750+ 44.000
227.750
Variable cost per unit = 101.250/15.000 = 6.75
So total VC after accepting the order will be = 101.250+ (5.500*6.75)
101.250+ 37.125
138.375.
Income statement after accepting the offer
227750
138375
1650
24750
39750
204525
23225
So earlier the net Income was 18000, now it is 23225
Profit after accepting the order = 23225-18000 = 5225
Answer:
Product K1 S5 G9
$ $ $
Contribution per pound 16.08 7.93 11.91
Explanation:
<em>Contribution per pound is equate to contribution per unit divided quantity of material required per unit of product.</em>
Contribution per pound = Contribution per unit/quantity of material
Contribution per unit =selling price - variable cost per unit
Product K1 S5 G9
$ $ $
Selling price 158.38 114.80 204.52
Variable cost (<u>86.00) (91.00) (139.00) </u>
Contribution per unit 72.38 23.8 65.52
Material per unit (pounds) 4.5 3 5.5
Contribution per pound 16.08 7.93 11.91
Alpha's Pizza and Bravo's Pizza are two restaurants that are in a horizontal conflict known as a price war. This conflict will most likely have a positive impact on consumers by reducing prices.
Explanation:
The price conflict or war between two companies will affect the customers positively as they both the companies will try to attract more consumers by reducing their price.
This form of market is known as perfect competition where the consumers will buy from the manufactures which has lower price in comparison of other (same) product manufacturer.
Answer:
A. $200
B. Fall
C. Inflationary expenditure gap and employment levels are higher than the full employment level.
Explanation:
A. Equilibrium occurs where real output (Y) equals aggregate expenditures (AE), where AE = C + Ig+ G +Xn.
Therefore the equilibrium value is:
Y = AE = C + Ig+ G +Xn
= $120 + $60 +(-$10) +$30 = $200
B. If real GDP is $230 and the aggregate expenditures of $200 will result in positive unplanned inventory investment which means GDP will fall as firms respond to the inventory build-up by reducing output.
C. C + Ig+ G +Xn
$170 + $60 + (−$10) +$30 =$250
Therefore since full-employment and full-capacity output in the economy is $230 there is an inflationary expenditure gap and employment levels are higher than the full employment level.