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2 years ago

A cost, which does not involve cash outlay, is called:

1 answer:

8 0

The answer would be : B. Imputed Cost

Imputed cost are the cost that could not be identified directly. example of imputed cost is an opportunity cost that may arise if you choose an investment

Meanwhile , outlay costs are the one that can be identified in the past , present, or future, which mean imputed cost does not included in the outlay cost

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Suppose a firm is producing in the long run. When it produces 4,000 units of output, its total cost is $8,000. When it produces

Scilla [17]

Answer:

increasing then decreasing

Explanation:

production level total cost average total cost

4,000 $8,000 $2.00

4,200 $8,200 $1.95

4,400 $8,800 $2.00

Returns to scale measure the change in productivity, or how much input is needed to produce a unit of output.

increasing returns to scale: output increases in a greater proportion than inputs
constant returns to scale: output increases in the same proportion as inputs
decreasing returns to scale: output increases in a lower proportion than inputs

Since first the average total cost decreased, total output increased in a greater proportion than inputs ⇒ increasing returns of scale. But then the situation reversed and total output increased in a lower proportion than inputs ⇒ decreasing returns of scale.

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2 years ago

There are three categories of cash flows: single cash flows, also referred to as "lump sums," a stream of unequal cash flows, an

Mama L [17]

Answer:

An ordinary annuity of equal time earns less interest than an annuity due.
When equal payments are made at the end of each period for a certain time period, they are treated as ordinary annuities.
A perpetuity is a series of equal payments made at fixed intervals that continue infinitely and can be thought of as an infinite annuity.

Explanation:

With an Annuity due, the payments are made at the beginning of the period as opposed to an ordinary annuity which is paid at the end. This difference gives the Annuity due more time to accrue interest which leads it to earning more interest than an ordinary annuity of the same time.

As earlier mentioned, Ordinary annuities involve payments made at the end of each period. Annuities are always equal payments so the second statement holds true.

A Perpetuity is indeed an annuity because of the fixed payments characteristic that it has. It is therefore called a Perpetual/ Infinite Annuity.

3 0

2 years ago

Lisa surveyed a sample group of people. Based on her survey, Lisa suggested to her company that they develop a customizable trav

saw5 [17]

<h2>Answer:</h2><h3>To me i think that the answer is e) ad analysis </h3><h2>Explanation:</h2><h3>she was going around and survey a sample group of people. Then she suggested to her company about they develop a customizable travel application.</h3>

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2 years ago

Mother & daughter jewelers breaches its lease with longview mall and vacates the premises six months before the end of the t

evablogger [386]

The answer to the question is use reasonable means to find a new tenant to mitigate damages. This particular approach is actually the preferred method when dealing with contract breaches, which is part of the duty to mitigate, applied to the landlord.

In this context, Longview Mall has a duty to find another tenant to ensure that the property does not sit empty for a long period of time (maximum 2 years).

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2 years ago

Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only o

-Dominant- [34]

Answer:

Explanation:

Alpha = $195

Beta = $150

total production capacity = 123,000 pounds

raw materials = $5 per pound

Production costs per unit Alpha Beta

direct materials $40 $15

direct labor $34 $28

variable manufacturing overhead $22 $20

fixed manufacturing overhead $30 $33

variable selling expenses $27 $23

common fixed expenses $30 $25

total cost per unit $183 $144

1) What contribution margin per pound of raw material is earned by Alpha and Beta?

Alpha Beta

contribution margin $72 $64

contribution margin per pound <u> $9</u> <u>$21.33</u>

2) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?

Alpha Beta

contribution margin $72 $64

contribution margin per pound $9 $21.33

production (in units) 2,500 75,000

profits $30,000 $450,000

total profits <u>$480,000</u>

3) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

Alpha Beta

contribution margin $72 $64

contribution margin per pound $9 $21.33

production (in units) 2,500 75,000

contribution margin $180,000 $4,800,000

total contribution margin <u>$4,980,000</u>

4) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials?

If it wants to increase the production of Alpha, it could pay as much as ($195 - $183) / 8 = $1.50 extra per pound if it wants to maximize profits. Maximum price = $6.50 per pound. At this point, marginal revenue = price.

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2 years ago