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A firm incurs $400 to manufacture a television. In the market, customers are willing to pay a maximum of $600 for the television

kotykmax [81]

Answer:

D. Economic value created.

Explanation:

The reason is that the economic value created is the difference between the price the customer is willing to pay and the cost that the product actually costs to the firm.

Following is the formula for calculation of economic value created:

Economic Value Created = Value customer willing to pay - Cost of product

Here the television costs $400 to the firm and the customer is willing to pay $600 for the television. So by putting the values we have:

Economic Value Created = $600 - $400 = $200

So the correct option is option D.

5 0

3 years ago

Autoliv produces air bag systems that it sells to automobile manufacturers throughout the world. Assume the company has a capaci

gogolik [260]

Answer: See explanation

Explanation:

a. The variable cost per unit will be:

= (3,825,000 - 3,680,000) / (45million - 40 million)

= 0.029

Then, the financial order of accepting the order will be:

Contribution margin = Unit selling price - Unit

= 65 - 29

= 36

Since the size of the order is 100,000, the financial impact of accepting the order will be:

= 36 × 100,000

= 3,600,000

b. The differential analysis will be:

Contribution from special order = 3,600,000

Opportunity cost {100,000 = 120,000,000 - 29,000,000 = 9,100,000

Net disadvantage of accepting order will then be:

= 3600000 - 9100000

= 5,500,000

5 0

3 years ago

Roberta is trying to decide whether to vote for a political candidate. based on what she has read about him, she has concluded t

slega [8]

The appropriate response is Affective. This part manages sentiments or feelings that are conveyed to the surface about something, for example, dread or despise. Utilizing our above illustration, somebody may have the disposition that they despise young people since they are languid or that they cherish all infants since they are adorable.

6 0

3 years ago

An example of an industry especially vulnerable to efforts to protect the environment is the _____ industry.

ANEK [815]

<span>An example of an industry especially vulnerable to efforts to protect the environment is the "asbestos removal" industry.
</span>
The Asbestos Removal Contractors Association, which is abbreviated as ARCA, it was established in 1980 and is an asbestos expulsion exchange relationship for the UK industry. It represents the interests of UK asbestos removal or evacuation temporary workers and the different related asbestos organizations all through the nation.

7 0

3 years ago

Magic Realm, Inc., has developed a new fantasy board game. The company sold 35,600 games last year at a selling price of $62 per

Natasha_Volkova [10]

Answer:

1a.

Magic Realm, Inc.,

Contribution format income statement

Per Unit Amount

Sales 62 2,207,200

Variable expenses 42 (1,495,200)

Contribution margin 20 712,000

Fixed expenses (623,000)

Net operating profit 89,000

1b.

Degree of operating leverage: 4

2. The expected percentage increase in net operating income for next year: 184%

Explanation:

1a. Please refer to the answer part

1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.

2.

Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%

3 0

3 years ago