Evergreen Air Center is the world's biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to
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Answer:
a) 275,000 boxed per year
b) sales price of $ 11.04
c) <em> sale volume in dollars 4.830.967,74</em>
Explanation:
selling price: $ 9.60
Variable cost: $<u> 5.76</u>
Contribution: $ 3.84
Contribution Ratio: 3.84 / 9.60 = 40%
1,056,000 / 3.84 = <em>275,000</em>
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<em>If Variable cost increase by 15%</em>
<em>To keep contribution ratio at 40% then selling price should be:</em>
(<em>X - 5.76 x 1.15) / X = 0.40</em>
<em>X = $ 11.04</em>
To keep the same income but without changing price:
current income: (sales x contribution less fixed cost)
(390,000 x 3.84 - 1,056,000) = 441,600
contribution: <em>(9.60 - 5.76 x 1.15) / 9.60 = 0.31</em>
<em>(1,056,000 + 441,600)/ 0.31 = </em>
<em>1.497.600 / 0.31 =</em><em> 4.830.967,74</em>
Answer:
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
Explanation:
a)The opportunity cost of 1 lb. of bananas is 4 lbs. of coffee for Oscar.
In order to produce 64 pounds of banana, Oscar has to give up producing 16 pounds of coffee, his opportunity cost is:
The statement is false.
b)Oscar has absolute advantage in the production of coffee.
Julia has a higher production capacity for coffee (20 pounds to 16 pounds) and therefore has the absolute advantage.
The statement is false.
c)Julia has comparative advantage in the production of bananas.
Julia has a higher opportunity cost for producing a pound of bananas (0.5 pounds of coffee to 0.25 pounds of coffee) and therefore does not have the comparative advantage.
The statement is false.
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
In order to produce 16 pounds of coffee, Oscar has to give up producing 64 pounds of banana, his opportunity cost is:
The statement is true.