Answer:
a. $0.98
b. 6,000 container
Explanation:
a. The computation of the incremental contribution margin per container is shown below:
= Drop selling price - total variable manufacturing cost - drop selling price × sales commission - sale value in raw form × basis
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 ÷ 4
= $0.98
b. The minimum number of containers of candy sold each month is
= (Per month salary paid to sales person + Master candy maker salary) ÷ ( incremental contribution margin per container)
= ($2,000 + $3,880) ÷ $0.98
= 6,000 container
We simply applied the above formulas so that the a and b part could arrive
Answer:
Accounting profit = $50
Economic profit = $10
Explanation:
Accounting profit = Revenue - Explicit cost
$60 - $10 = $50
Economic profit = Accounting profit - Opportunity cost
$50 - $40 = $10
I hope my answer helps you
Salary relationships usually have behaviors that can be expressed through mathematical equations, for this case we must locate the information they give us, according to which the salary of the movie star 
is equal to a fixed basic remuneration 
plus a percentage 
of the gross income 
, that is:
With this equation and the data they give us, we can solve the request so
:
We clear the basic remuneration from the second equation and replace in the first:
Thus, with the fixed basic remuneration and the percentage of gross income calculated, we can estimate how much the following film should obtain so that the movie star obtains at least 
millions salary:
Answer
The <em>minimum amount</em> of gross income that the next film should generate is 
<em>millions</em>
Answer:
$30,000 excess
Explanation:
Beginning cash balance + Budgeted receipts - Budgeted disbursements + excess/deficiency = desired ending balance
$18,000 + $175,000 - $174,000 + $X = $49,000
$19,000 + $X = $49,000
$X = $49,000 - $19,000
$X = $30,000
Answer:
a) a downward shift in the AFC curve
Explanation:
AFC = Average Fixed Cost, AVC = Average Variable Cost, MC = Marginal Cost
Average Fixed Cost is defined as the fixed cost of production divided by the quantity produced. Mathematically given as:
Average Fixed Cost = Fixed Cost ÷ Quantity
AVC = FC ÷ Q
Average Variable Cost is defined as the variable cost of production divided by the quantity produced. Mathematically given as:
AFC = VC ÷ Q
Marginal Cost is defined as the cost incurred for an additional unit to be produced. Mathematically given as:
MC = ΔC ÷ ΔQ
The firm discovered a more efficient technology implies that the cost of production is reduced. The result of this is that the fixed cost (FC) is reduced and consequently, the AFC is reduced as well. Hence, the AFC curve shifts downward. We therefore see that a reduction in fixed costs (due to the discovery of a more efficient technology) results in the AFC curve shifting downwards
<u>Hence, Option A (a downward shift in the AFC curve) is the correct answer </u>
