One difficulty in using voluntary transactions to internalize externalities is that: ____________

Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only on

Vika [28.1K]

Answer:

CANE COMPANY

a. total amount of traceable fixed manufacturing overhead

Alpha = $19*105,000 = $1,995,000

Beta = $21*105,000 = $2,205,000

b. Company's total amount of common fixed expenses =

Aplha = $18*105,000 = $1,890,000

Beta = $13* 105,000 = $1,365,000

Total = $3,255,000

c. Increase in profit as result of accepting the offer = additional contribution * additional unit sold

= $14*13,000

= $182,000

additional contribution =$92 - (30 + 23 + 10 + 15)

d. Decrease in profit = loss of contribution * unit sold

= -13 *4000

= ($52,000)

loss of contribution = 42 -( 18+ 16 +8+13)

Explanation:

3 0

3 years ago

Before you confirm the backpack shape selection, let's make sure you're reading the backpack shape information properly. Which o

Novosadov [1.4K]

<u>Teardrop Rucksack</u> has the highest production cost.

Production fees refer to all of the direct and oblique fees businesses face from production a product or offering a carrier. Manufacturing expenses can consist of a selection of costs, including exertions, raw substances, consumable manufacturing materials, and general overhead.

It includes 3 most important costs: uncooked substances, direct labor, and overhead. Those charges can be fixed (maximum overhead) or variable (uncooked substances and hard work). The whole product value formula is general Product price = fee of raw substances + price of Direct exertions + price of Overhead.

Blanketed inside the production fee are (1) the fee of uncooked materials, (2) the fee of direct labor, and (3) the cost of overhead. Raw substances and hard work costs are frequently variable, even as the overhead expenses are in the main fixed.

Learn more about production cost here:- brainly.com/question/13738783

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4 0

1 year ago

How did the shift to steam power lead to the growth of cities?

MA_775_DIABLO [31]

The shift to steam power contributed to the growth of cities in many way. Firstly, it provides a continuous source of power to industries, which leads to high level of productivity. The availability of jobs in the industries makes the people in the rural areas to migrate to the cities in search of greener pastures. Steam power also created a new and efficient means of transportation which make it possible to move people and goods over long distances in record time.

7 0

3 years ago

Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $

RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

Retain Replace Net Income

Equipment Equipment Increase(Decrease)

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs 0 3,59,000 -3,59,000

Sell old machine 0 -33,500 33,500

Total 43,63,100 35,58,100 8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0

3 years ago

Moe's Pizza Shop sells a large pizza for $12.00. Unit variable expenses total $8.00. The breakeven sales in units is 7,000 a

Nookie1986 [14]

Answer:

Margin of safety= $12,000

Explanation:

Giving the following information:

Moe's Pizza Shop sells a large pizza for $12.00. Unit variable expenses total $8.00. The breakeven sales in units are 7,000 and budgeted sales in units are 8,000

To calculate the margin of safety in dollars, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= (8,000*12) - (7,000*12)= $12,000

3 0

3 years ago

One difficulty in using voluntary transactions to internalize externalities is that: _____________