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3 years ago

When an allocation of resources maximizes total surplus, the result is said to be efficient.

1 answer:

7 0

It is True that when an allocation of resources maximizes total surplus, the result is said to be efficient.

This is based on the governmental policies indicators, which state that the equilibrium of supply and demand maximizes total surplus.

This is because, at the equilibrium of supply and demand, the output point is deemed efficient.

This situation is because there is no other price and quantity combination that can lead to a higher level of total surplus.

Hence, in this case, it is concluded that the statement above is True.

Learn more here: brainly.com/question/15060589

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Identify an industry with high fixed costs in the short run

Ganezh [65]

The answer is: Car manufacturers

An industry that have high fixed costs in the short run would be the industry that has to put a high price tag for their products.

Car manufacturers need to provide a high number of capital on the early stage of investments to purchase machines and factory spaces that essential for the efficiency of the production. Due to this hard requirements, there is very little new company enter the competition in car manufacture industries in recent centuries.

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3 years ago

If you sold 17 units this week out of 153 units in inventory what percent of your inventory did you sell?

storchak [24]

Answer:

26%

Explanation:

5 0

4 years ago

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $

yawa3891 [41]

Answer:

<h2>Forbes Division of Pitt, Inc.</h2><h3>Performance Report</h3>

by Oscar Clemente

ROI = $1,900,000/$4,500,000 x 100 = 42.222%

(Return on Investment = Operating Income/net book value of new investment x 100)

Explanation:

a) Forbes Division's Expected Income Statement at the beginning of the year: Year 1 Year 2

Sales revenue $ 16,000,000 $ 17,600,000

Operating costs:

Variable 2,000,000 2,200,000

Fixed (all cash) 7,500,000 6,750,000

Depreciation: New equipment 1,500,000 2,000,000

Other 1,250,000 1,250,000

Disposal of old equipment (loss) 3,500,000

Division operating profit $ 3,750,000 $ 1,900,000

b) Return on Investment (ROI) is a financial performance measure which evaluates the efficiency of an investment, by trying to directly measure the amount of return on a particular investment, relative to the investment's cost.

c) The Formula for ROI calculation is to subtract the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, and, finally, multiplying it by 100. In this Forbes Division, the operating income is taken as the difference between the initial value of the investment and the final value of the investment.

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3 years ago

When companies try to entice customers to make purchases by offering special incentives or excitement-building programs, includi

stealth61 [152]

Answer:

<em>Sales Promotion</em>

Explanation:

The method of order to persuade a potential client to purchase the product is sales promotion.

Sales promotion is meant to be used as a short-term tool to boost sales – as a means of creating long-term customer loyalty, it is rarely acceptable.

Many offers for sales are intended for customers.

5 0

3 years ago

Amazon has the following information for the month of March.

hram777 [196]

Answer:

(a) schedule of cost of goods manufactured

Raw Materials 409,300

Direct labor 117,000

Factory overhead 102,000

Add Opening Work in process 55,600

Less Closing Work in process (77,900)

Cost of goods manufactured 606,000

(b) an income statement for the month ended March 31

Sales 1,167,000

<em>Less</em> Cost of Sales

Opening Finished goods inventory 65,400

Add Cost of Goods Manufactured 606,000

Less Closing Finished goods inventory (82,200) (589,200)

Gross Profit 577,800

Sales and administrative expenses (371,000)

Net Income 206,800

Materials inventory 91,500

Work in process 77,900

Finished goods inventory 82,200

Total 251,600

Explanation:

(a) schedule of cost of goods manufactured

Materials Used in Production = Opening Materials inventory + Purchases - Closing Materials inventory

= 83,300 + 417,500 - 91,500

= 409,300

<u>schedule of cost of goods manufactured</u>

Raw Materials 409,300

Direct labor 117,000

Factory overhead 102,000

Add Opening Work in process 55,600

Less Closing Work in process (77,900)

Cost of goods manufactured 606,000

(b) an income statement for the month ended March 31

Sales 1,167,000

<em>Less</em> Cost of Sales

Opening Finished goods inventory 65,400

Add Cost of Goods Manufactured 606,000

Less Closing Finished goods inventory (82,200) (589,200)

Gross Profit 577,800

Sales and administrative expenses (371,000)

Net Income 206,800

Materials inventory 91,500

Work in process 77,900

Finished goods inventory 82,200

Total 251,600

8 0

3 years ago