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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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Murrr4er [49]

Answer:

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Explanation:

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2 years ago

Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th

andre [41]

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

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2 years ago

A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share

Andru [333]

Answer:

9.9 %

Explanation:

he formula for calculating dividend yield is as follows,

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For this case: Annual dividend = 4 ( $ 2.1 per quarter)

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2 years ago

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead

Makovka662 [10]

Answer:

The Corporation's manufacturing overhead cost for the year was $543,840

Explanation:

Giving the following information:

Last year, the Corporation worked 60,500 actual direct labor-hours and incurred $532,000 of actual manufacturing overhead cost.

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First, we need to calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 532,000/60,500= $8.80 per direct labor hour.

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2 years ago

Justin signed a finance agreement for his recent purchase.what is the collateral for his loan?

gayaneshka [121]

Answer:

According to the guarantees, the following types of loans can be distinguished:

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Explanation:

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