<span>If the firm decides to increase the number of shirts by 100 units, the opportunity cost will be 200 pants. If the firm is at point E and decides to increase the production of shirts by 500 units, the opportunity cost will be 400 pants.</span>
The term “Global Economy” is a term that refers to all of the economies of the world.
Sometimes this phrase is also used to discuss the international economy, or all economies around the world, and refers to how interdependent different countries economies are on each other.
Answer:
(i) $34,200
(ii) $55,860
(iii) $23,960
Explanation:
Total sales = $ 240,000 + $392,000 + $168,000
= $800,000
Department 1:
sales = $240,000
Percent of total = sales ÷ Total sales
= $240,000 ÷ $800,000
= 0.3
Allocated amount = % of total × advertising to allocate
= 0.3 × $114,000
= $34,200
Department 2:
sales = $392,000
Percent of total = sales ÷ Total sales
= $392,000 ÷ $800,000
= 0.49
Allocated amount = % of total × advertising to allocate
= 0.49 × $114,000
= $55,860
Department 3:
sales = $168,000
Percent of total = sales ÷ Total sales
= $168,000 ÷ $800,000
= 0.21
Allocated amount = % of total × advertising to allocate
= 0.21 × $114,000
= $23,940
Answer:
Differential cost= $9.25
Differential revenue= $16
Explanation:
As the name suggest, differential cost is the difference between the costs of two alternative options. Now in this question, Patridge Co. has two products, PJ AND PD, <em>one of which (i.e PD) can be produced by further processing an already produced product (i.e PJ). But for the production of product D, Patridge Co. would have to incur additional cost of $9.25 per pound. </em>
The formula for differential cost is as follows;
Differential cost= total cost of alternative J - total cost of alternative D
Differential cost= $15.75 - ($15.75+$9.25)
Differential cost= $9.25
Differential revenue is similarly the difference between the revenue generated by two alternatives. In this question product J sells for $21 whereas product D sells for $37 so the differential revenue would be as follows:
Differential revenue = revenue of alternative D - revenue of alternative J
Differential revenue= $37 - $21
Differential revenue= $16
The owner’s return on investment is $4,583,000
Investment definition is an asset received or invested in to build wealth and keep money from the tough earned earnings or appreciation. funding that means is generally to reap a further source of profits or benefit take advantage of the funding over a selected period of time.
Making an investment is a powerful way to put your money to work and probably build wealth. smart investing may additionally allow your money to outpace inflation and boom in value. The greater growth potential of investing is primarily because of the power of compounding and the chance-go-back tradeoff.
Within the maximum sincere feel, investing works when you buy an asset at a low rate and promote it at a higher price. This sort of go back to your investment is called a capital benefit. earning returns with the aid of selling assets for a profit—or figuring out your capital profits—is one way to make cash investing.
$550,000 ÷ 0.12 = $4,583,000
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