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77julia77 [94]
2 years ago
11

A peach farmer must decide how many peaches to harvest for the world peach fair. He knows that there is a 25 percent chance that

the world price will be $3, a 50 percent chance that it will be $3.50, and a 25 percent chance that it will be $4. His cost function is C(Q) = 0.05Q2. The farmer's maximum expected profit is:
a. $61.25.
b. 0.
c. $122.50.
d. None of the answers are correct.
Business
1 answer:
noname [10]2 years ago
3 0

Answer:

The correct option is a. $61.25.

Explanation:

Note: The correct cost function of the farmer is as follows:

C(Q) = 0.05Q^2 ……………….. (1)

Differentiating equation

MC = C’(Q) = 0.1Q

P = Expected price = (25% * $3) + (50% * $3.50) + (25% * $4) = $3.50 ……. (2)

Since profit is maximized when MC = P, we equate equations (1) and solve for Q which is the expected profit-maximizing quantity as follows:

0.1Q = 3.50

Q = 3.50 / 0.1 = 35

Substituting Q = 35 into equation (1), we have:

C(Q) = 0.05 * 35^2 = $61.25

R(Q) = Maximum expected revenue = P * Q = $3.50 * 350 = $122.50

The farmer's maximum expected profit = R(Q) - C(Q) = $122.50 - $61.25 = $61.25

Therefore, the correct option is a. $61.25.

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Answer:

$100338000.

Explanation:

Given: Inventory carrying= $100338000.

As entire inventory is been sold at current price, then revenue of the company will increase by $100338000, therefore contribution margin will also increase further by $10033800 for the Andrew corp.

∴ Contribution margin= $100338000.

Inventory carrying cost are the cost of holding inventory for a period of time until it is sold. it include warehousing cost, cost for keeping inventory safe, etc.

4 0
2 years ago
The employees who physically move inventory items for storage or shipment
kirill [66]
I’m pretty sure it’s b
7 0
2 years ago
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Answer:

The answer is $1000.

Explanation:

We can define fixed cost as the costs that does not increase or decrease as with the change in the service given or the goods produce.

According to this, we can say that the $16 price per meal and therefore the $4 ingredients are not included in the fixed cost. The light, heat and fuel are also dependent on the usage, so they do vary with the service given.

The other costs given in the question are eligible to be counted as fixed costs because they are not dependent on the number of costumers or the amount of food served.

So the fixed costs for Bella Capri per week is $250 + $150 + $600 = $1000.

I hope this answer helps.

6 0
2 years ago
Chip’s Woodworking manufactures and sells specialty wood plaques. The production manager reported that the company needs to prod
zheka24 [161]

Answer:

UNIT COST $32

Explanation:

the absorption costing system is the sum of expenses applicable to purchases and charges directly or indirectly incurred to produce a good or service.

This model considers both fixed and variable costs. Which translates into a higher unit cost.

in these case unit cost = 6+10+6+6+2+2 = 32

+Direct materials $6

+Direct labor $10

+Fixed manufacturing overhead $6,000  / 1000 units= $6

+Variable manufacturing overhead $6

+Fixed operating expenses (selling, general, and administrative) $2,000 / 1000 units=$2

Variable operating expenses (selling, general, and administrative $2

8 0
2 years ago
Mr. jernigan owns a piece of land on which he grows corn. corn production annually requires ​$2 comma 0002,000 in​ seed, ​$3 com
nika2105 [10]

Answer:

economic costs = $56,000

Explanation:

given data

seeds = $2,000

fertilizer = $3,000

pesticides =  $6,000

earning ​= $45,000

solution

total Accounting cost of Mr. jernigan is

total Accounting cost of Mr. jernigan = $2,000  + $3,000  + $6,000

total Accounting cost of Mr. jernigan = $11,000

and

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economic costs = $11,000 + $45,000

economic costs = $56,000

7 0
2 years ago
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