The most populous country in the world is O Russia Egypt O China India

Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf d

Alecsey [184]

Answer:

The recommended production quantity is that which maximizes profit.

Quantity 130

Explanation:

Quantity to produce is the problem here. Remember that this is one of the fundamental questions in the discipline of Economics.

- What to produce? - For whom to produce?

- How to produce? - In what quantity?

Possible Production Quantities:

100, 110, 120, and 130

Mean Demand = 100

Standard Deviation = 20

Lowest possible demand = 100 - 20 = 80units

Highest possible demand = 100 + 20 = 120units

* Solve, using the mean demand for each quantity level. Assume also that on every Monday, the minimum possible quantity is what is purchased. That's the safest assumption anyway.

FOR QUANTITY 100,

Revenue = 7×100 = $700 Direct cost = 2×100 = $200

Indirect cost = 0.6×20 = $12 Total cost = 200 + 12 = $212

PROFIT = 700 - 212 = $488

FOR QUANTITY 110,

Revenue = 7×110 = $770 Direct cost = 2×110 = $220

Indirect cost = 0.6×30 = $18 Total cost = 220 + 18 = $238

PROFIT = 770 - 238 = $532

FOR QUANTITY 120,

Revenue = 7×120 = $840 Direct cost = 2×120 = $240

Indirect cost = 0.6×40 = $24 Total cost = $264

PROFIT = 840 - 264 = $576

FOR QUANTITY 130,

Revenue = 7×130 = $910 Direct cost = 2×130 = $260

Indirect cost = 0.6×50 = $30 Total cost = $290

PROFIT = 910 - 290 = $620

Remember, the base assumption is that only the minimum quantity of 80units is bought each Monday. This is the only way to account for wastage; which costs 0.6 dollar per unit. So, the more the quantity produced, the greater the likelihood of wastage.

3 0

2 years ago

Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables

Ede4ka [16]

Answer:

The accounting entry for each transaction is given below.

Gibson contributed $10,000 to the business in exchange for capital.

Debit Cash Asset $10,000

Credit Capital $10,000

b. Purchased equipment for $5,000 on account.

Debit equipment Asset $5,000

Credit Payable Liability $5,000

c. Paid $400 for office supplies.

Debit payable $400

Credit Cash Asset $400

d. Earned and received $2,500 cash for service revenue.

Debit Cash Asset $2,500

Credit Income $2,500

e. Paid $400 for wages to employees.

Debit Wages expense $400

Credit Cash Asset $400

f. Gibson withdrew $1,000 cash

Debit Capital $1,000

Credit Cash Asset $1,000

.g. Earned $1,000 for services provided. Customer has not yet paid.

Debit Receivable $1,000

Credit Service Income $1,000

h. Paid $1,000 for rent.

Debit Rent expense $1,000

Credit Cash Asset $1,000

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

Debit Utility expense $250

Credit payable $250

8 0

3 years ago

If Morton Company expects to sell VCR’s at $100 a unit with variable costs of $60 per unit and DVD’s at $200 per unit with varia

Thepotemich [5.8K]

Answer:

$72

Explanation:

To calculate the weighted contribution margin we can use the following formula:

[(sales price A - variable cost A) x proportional sales A] + [(sales price B - variable cost B) x proportional sales B]

= [($200 - $120) x 80%] + [($100 - $60) x 20%] = $64 + $8 = $72

7 0

3 years ago

The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charge

MAXImum [283]

Answer:

Both will bear

Explanation:

Both Mr. Janey and Ms. lacey will bear the incidence of the property tax increase because Mr. Janey has only shifted $540 ( $45 x 12) of the total $1200 by increasing the monthly rent charge of his tenant Ms. lacey by $45/month. Mr. Janey will pay only $660 of $1200 increase in tax and remaining will be paid by Mr Lacey.

6 0

3 years ago

)In six months, your company plans to issue a 1.5 year zero coupon bond with a face value of $500,000 to finance a small acquisi

pishuonlain [190]

Answer:

$441,495

Explanation:

Since the information is incomplete, I looked for the missing part and found the attached information.

the current yield of a 1.5 years zero coupon bond = (100 / 89.9)¹/¹°⁵ - 1 = 0.0736 = 7.36%

the current yield of a 6 months zero coupon bond = (100 / 97.087)¹/⁰°⁵ - 1 = 0.0609 = 6.09%

now to calculate the future interest rate:

(1.0736²/1.0609) - 1 = 0.0865 = 8.65%

since we are told to determine the price of the bond:

(100/P)¹/¹°⁵ - 1 = 0.0865

(100/P)¹/¹°⁵ = 1.0865

100/P = 1.0865¹°⁵

100/P = 1.1325

100/1.1325 = P

P = 88.299

the expected price of the bond = 88.299% x $500,000 = $441,495

8 0

2 years ago