Answer:
rework the units by spending $750 extra in order to get $1,500 in revenue
Explanation:
The company incurred in the following sunk costs:
- production costs = $2 per unit
Since the 500 units were all defective the company can:
sell the defective units at $1 each = $1 x 500 = $500 revenue
reworking the units for $1.50 each and selling them for $3 ⇒ contribution margin = $3 - $1.50 = $1.50 per unit, which results in a $750 gross profit
The company must consider the $1,000 spent first as sunk costs, since whatever action they decide, they will not recover them. Therefore the company must only analyze the alternatives starting from scratch.
Answer:
The correct answer is $55.
Explanation:
Implicit costs, also known as opportunity costs, are the costs of lost opportunities due to business decisions.
That is, they refer to the income that the resources of a company would otherwise generate if they are put to any other use apart from its current allocation.
To calculate this value, you have to:
Purchased shares = 100
So, 100 (10.30 - 10.25) + 2 (.25) = $ 55
Hello There!
In the presentation stage of the sales process, a salesperson describes a person's features and relates them to the customer's needs.
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- Hannah ❤
Answer:
Increase; higher; more; lower; lower
Explanation:
Expansionary policy is required to combat unemployment in the economy. If the government increases the money supply, the interest rate falls. This causes an increase in investment as lending becomes cheaper. Increase in investment causes an increase in the aggregate demand. Increased demand further causes the price level to rise.
Increase in prices will motivate producers to produce more. In order to increase output producers will hire more workers. Consequently, the rate of unemployment will fall. We see that at higher inflation unemployment is lower and vice versa. This means that there is a trade-off between inflation and unemployment.
<span>The ready company has two operating (production departments: assembly and painting. the assembly has 150 employees and occupies 44,000 square feet; painting has 100 employees and occupies 36,000 square feet. indirect factory expenses for the current period are as follows:
The administration will have $86,400 while the maintenance has $108,000.
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