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2 years ago

Table: Marginal Analysis of Sweatshirt Production II:

Business

1 answer:

saul85 [17]2 years ago

3 0

Answer:

Optimal qauntity is 4 Units

Explanation:

Here, we have to decide quantity of production at which maximum profit can be generated. For this reason we will have to contruct a table which will help us to calculate Marginal Benefit and Marginal cost. This table is given as under:

Quantity Total benefit Marginal benefit Total Cost Marginal Cost

0 Units 0 0 0 0

1 Units 16 16 9 9

2 Units 32 16 20 11

3 Units 48 16 33 13

4 Units 64 16 48 15

5 Units 80 16 65 17

We can see that at 4 Units, marginal revenue is almost equal to marginal cost. At this level of production, we have maximum benefits generated which is:

Maximum Benefit Generated = ($16 - $9) + ($16 - $11) + ($16 - $13) + ($16 - $15) = $7 + $5 + $3 + $1 = $16 for 4 Units

We can also cross check by considering 5 units case to assess whether the benefit generated is more than 4 units case or not.

Maximum Benefit Generated (For 5 Units) = ($16 - $9) + ($16 - $11) + ($16 - $13) + ($16 - $15) + ($16 - $17) = $7 + $5 + $3 + $1 - $1 = $15 for 4 Units

As the maximum benefit generated in the case of 4 units is more because of using marginal revenue = Marginal Cost relation, hence the optimal quantity is 4 units.

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An artist who uses a spontaneous, less fussy approach to painting can be said to be using the ____________ technique

Scilla [17]

The technique that the artist is using could be described as the alla prima technique in which it is often used in paintings such as the oil paintings. It is a painting technique that uses wet paint to be able to give out its spontaneous and fuzzy look. The wet paints that are being applied to the portrait has many layers to show its structure or the beauty of the technique.

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2 years ago

Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets.

snow_lady [41]

Answer:

Laserscope Inc.

Return on Equity (ROE):

= $1,466,400/$18,000,000 * 100

= 8.15%

Explanation:

a) Laserscope's Return on Equity (ROE) is a financial performance measure, calculated by dividing the net income or Earnings After Tax (EAT) by its total shareholders' equity. It is usually expressed as a percentage. So the above calculation is further multiplied by 100.

b) Data and Calculations:

Current assets = $16

Fixed assets = $20

Total assets = $36

Debt ratio = 50% of $36 million = $18 million

Therefore, Stockholders' equity = 50% (1 - 50%) or $18 million

EBIT = $4.1 million

Short-term debt = $6 million

Long-term debt = $12 million

Interest on short-term debt = $420,000 (7% * $6 million)

Interest on long-term debt = $1,236,000 (10.3% * $12 million)

Total interest expense = $1,656,000

Earnings before interest and taxes = $4,100,000

Interest expense 1,656,000

Earnings before taxes 2,444,000

Company tax (40%) (977,600)

Earnings after taxes (EAT) $1,466,400

7 0

2 years ago

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such

olganol [36]

Answer:

True

Explanation:

As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.

Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.

Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.

6 0

2 years ago

A Process Breakdown Structure can provide a reasonable alternative to a Work Breakdown structure for an extensive development pr

creativ13 [48]

Answer: phase exit criteria is firmly establish

Explanation:

A work breakdown structure simply has to do with the completion of tasks in order to get the final product. The aim of the work breakdown structure is to keep project members focused and achieve their goals.

Process Breakdown Structure can provide a reasonable alternative to a work breakdown structure for an extensive development project if the phase exit criteria is firmly establish.

6 0

2 years ago

If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect

tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0

2 years ago