Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.
- In this situation, Wilson owns a club and works as an accountant in it.
- This type of cost defines an Implicit cost for Wilson's health club.
Answer:
$532,000
Explanation:
The opportunity cost is the cost of the best option rejected.
In this case the option rejected was the investment project that would have returned a total fo 532,000
Therefore, the model 240 should produce a higher profit than 532,000 to reject his project.
The 310 model would have unused capacity as it has more capacity than model 240 but the company will not need to produce as much. So it is discarted from the calculation as it has inefficiency
Answer:
Per unit customer costs = $4.5 per unit
Explanation:
Under activity based costing cost are allocated based on per activity rate.
Customer return processing activity rate = $45 per return
Shipping activity rate = $10 per shipment
for Product 1
Total cost of shipment and return will be as follows:
Shipment = 1,200 X $10 = $12,000
Returns = 150 X $10 = $1,500
Total = $12,000 + $1,500 = $13,500
Total units = 3,000
Per unit customer costs = $13,500/3,000 units = $4.5 per unit
Answer:
Jackson's target total cost of producing and selling 6 million cans of paint of $31,800,000 will enable it to reach stockholders' profit goals of $6 million.
The implication is that it should not allow its total costs (Production and other business expenses) to exceed $37,800,000.
This is because its sales revenue will be equal to $43,800,000 (6,000,000 * $7.30).
As such, Jackson can produce a can of paint for $5.30. It can also incur an average business expense of $1.00 per can to maintain and reach its $6 million profit target.
Explanation:
Profit is the difference obtained after deducting all costs from the revenue. There are some profit stages. The first is the gross profit, which considers the sales revenue and the cost of goods sold. The next profit stage is the operating profit, which subtracts the business running expenses from the gross profit. There are also profits before and after interest and taxes. The after tax profit is also called the net income or net profit. If it is negative, then it is called the net loss. It is from the net income that distributions are made to stockholders in the form of dividends while a part is retained in the business to increase its capital stock or stockholders' equity.
Answer:
A
Explanation:
A monopoly is when there are two firms operating in an industry.
A duopoly is when there are two firms operating in an industry. When the two firms collude, they become a monopoly.
If a monopoly maximises profit by producing 4000 units, the colluding duopolist would also maximise profit by producing 4000 units
