Do “rules of the game” promote or prevent opportunism?

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below

RideAnS [48]

Answer:

137,000

Explanation:

Jan Feb March

Units produced 94000 80000

Raw materials 26,000

Raw materials 213800 239800 295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

7 0

2 years ago

How do you feel at the beginning of the game as the facts about your situation flash on the screen? Do you think you can live 30

Alex73 [517]

Answer:

If you use the money reasonably and wisely, Yes, I think you can live 30 days with 1000 dollars in savings.

8 0

2 years ago

Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $0.84 per $100. Ten months later his

Dovator [93]

Answer:$616

Explanation:

The insurance policy is a policy on an annual basis in which premium are paid in advance to enable the insurance firm to provide cover for the clients.

Cost of insurance

$0.84* ($88000/100)

= $732.92 per annum

However since the insurance was cancelled after 10 months he will only be responsible for 10 months.

$739.2/12*10

=$616

4 0

2 years ago

Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information f

makkiz [27]

Answer:

Variable Overhead Rate Variance $

-$3,450 Favorable

Variable Overhead Efficiency Variance $

$ 864 Unfavorable

Variable Overhead Spending Variance $

-$3,402 Favorable

Explanation:

Variable overhead rate variance = actual variable overhead - (actual direct hours x standard rate) = $9,510 - (16,200 x $0.80) = $9,510 - $12,960 = -$3,450 Favorable

Variable overhead efficiency variance = (actual labor hours - standard hours) x standard rate = (16,200 - 15,120) x $0.80 = 864 Unfavorable

Variable overhead spending variance = actual hours x (actual rate - standard rate) = 16,200 x ($0.59 - $0.80) = 16,200 x (-$0.21) = -$3,402 Favorable

4 0

2 years ago

You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your

love history [14]

Answer:

Consider the following calculations

Explanation:

a) If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000

And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000

profits=$300,000

b) if you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.

So profits = 1000*90 + 1000*160=$250,000

c) for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.

So everyone will buy a bundle of 1 X and 1 Y.

profits = 150*3000= $450,000

d) If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000

Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000

and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000

total profits =$460,000

5 0

2 years ago