Two constraints to maximizing profit are cost of production and consumer demand.
Consumer demand is essential for revenue. Competition and budget can affect demand and put constraints to profit maximization. Cost of production can constraint profits maximization too because the higher the cost of raw material, the higher the cost of production will be, which in turn will affect the price of the product. This increase in price can also affect the demand.
The answer is then D.
Answer:
48
Explanation:
Employee turnover is the rate at which employees leave a company, whether voluntary or involuntary.
In this company, 20 percent of employees leave every year.
If the company intends to have 40 more workers, it should plan to hire the 40 plus an extra 20 percent.
The company should hire 40 plus 20% of 40
=40 + (20/100 x 40)
=40 +(0.2 x40)
=40 +8
=48
The company should hire 48 workers
Answer:
Total Fixed costs: $
Rent 2,000
Utilities 700
Salaries 2,950
Advertising 50
Total fixed cost 5,700
Contribution per car = Selling price - Unit variable cost
= $10.50 - $2.50
= $8.00 per car
Break-even point in full-service car
= <u>Total fixed cost</u>
Contribution per car
= <u>$5,700</u>
$8.00
= 712.5 = 713 cars
Explanation:
Break-even point in full-service car equals total fixed cost divided by contribution per car. Contribution per car is selling price minus variable cost per car.
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
