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SSSSS [86.1K]
2 years ago
10

What will happen if a shoe firm sells its shoes at a price lower than the opportunity cost of the inputs used in the production

process?
Business
1 answer:
Maslowich2 years ago
5 0
Had to look for the options and here is my answer. What happens when a shoe firm puts its shoes on sale at a price that is lower than the opportunity cost of the inputs used in the process of production is that the firm will possibly make losses between the accounting and economic aspects. 
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A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 compu
kherson [118]

Answer:

$1,840

Explanation:

In order to calculate the Marginal cost of producing the computers in 2nd hour of work, we need to add the marginal cost of computer and marginal cost of wage in the 2nd hour of work.

MC = MC(computers) + MC(wage)

MC = $1,800(w) + $40

MC = $1,840

Working

MC (computers ) = 3 x 600$ = $1,800

                hour        computers assembled

                    1st                        4

                    2nd                      7

If pam works 2 hours she can assemble 7 computers but she already assembled 4 computers in 1st hour.

So the 2nd-hour computers will be 3 ( 7 - 4) computers.

4 0
1 year ago
An activity's normal time and cost are 8 and $100, respectively. its estimated crash time and cost are 6 and $160, respectively.
Sphinxa [80]
An activity's normal time and cost are = 8 and $100 respectively
estimated crash time and cost are = 6 and $160 respectively
Activity's crash cost per unit time = ?
crash cost per unit time = cost slope and,
cost slope = rise/run = (crash cost - normal cost) / (normal time - crash time) 
cost slope = (160 - 100) / (8 - 6) = 60 / 2 = $30
so, crash cost per unit time is $30.
3 0
2 years ago
During January, 7,000 direct labor hours were worked at a standard cost of $20 per hour. If the direct labor rate variance for J
igor_vitrenko [27]

Answer:

$17.50

Explanation:

Given that,

Direct labor hours = 7,000

Standard cost = $20 per hour

Direct Labor Rate Variance = $17,500 Favorable

(Standard Rate - Actual Rate) × Actual Hours = $17,500 Favorable

(20 - Actual Rate) × 7,000 = $17,500 Favorable

140,000 - 7,000 Actual Rate = $17,500 Favorable

Therefore,

7,000 Actual rate = (140,000 - $17,500)

Actual rate = 122,500 ÷ 7,000

                  = $17.50

8 0
1 year ago
President Zane is adamant about getting feedback from customers about how the company could improve. They gather data through su
Artist 52 [7]

Answer:

These are the options for the question:

A.credibility of the source

B.information quality

C.whether the information is negative or positive

D.the cost of obtaining the information

E.how the information is to be used

And this is the correct answer:

C.whether the information is negative or positive

Explanation:

Because the information is being gathered with the goal of obtaining feedback from the customers about how the company could improve, making such changes depend on whether the information is negative or positive.

If for example, all the customers gave positive feedback, then the company would not need to change anything about its operation: it would be satisfying customer expectations.

4 0
2 years ago
Pun Corporation concluded the fair value of Slender Company was $60,000 and paid that amount to acquire its net assets. Slender
Lady_Fox [76]

Answer:

Investment on Slender    51,000

Goodwill                             9,000

fees expense                     4,000

            Cash                                  64,000

Explanation:

fair value of Slender:

71,000 - 20,000 = 51,000

purchase price      60,000

goodwil                   9,000

finder's fees           4,000

It will recognize the goodwill for Slender

it will pay the finder's and recognize them as expense

The total cash will be 60,000 to aquire Slender and the 4,000 finder's expense

3 0
1 year ago
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