Auger Ambit Limited is a manufacturing company which sets prices based on total
costs plus mark-up. For the year ending 31 December 20X3 the company is forecasting total fixed
costs of 788,000€. Direct materials costs will be 18.00€ per unit and direct labour costs will be
27.56€ per unit. The company expects to produce 20,000 units, and normally looks for a profit mark-
up of 25%.
Suggest a suitable cost-based selling price per unit of product for 20X3

Answers

Answer 1

Auger Ambit Limited is a manufacturing company that sets prices based on total costs plus mark-up. For the year ending 31 December 20X3 the company is forecasting total fixed costs of 788,000€.

Direct materials costs will be 18.00€ per unit, direct labor costs will be 27.56€ per unit, and the company expects to produce 20,000 units, and normally looks for a profit mark-up of 25%.To determine the cost-based selling price per unit of product for 20X3, the following formula will be used:Selling price = Total cost per unit + Mark-up per unitTotal cost per unit = Direct materials costs per unit + Direct labor costs per unit + Fixed costs per unitFixed cost per unit = Total fixed cost / Number of units producedFixed cost per unit = 788,000 / 20,000= 39.4€ per unitTotal cost per unit = Direct materials costs per unit + Direct labor costs per unit + Fixed costs per unitTotal cost per unit = 18€ per unit + 27.56€ per unit + 39.4€ per unitTotal cost per unit = 84.96€ per unitMark-up per unit = 25% of Total cost per unitMark-up per unit = 25% * 84.96€ per unitMark-up per unit = 21.24€ per unitSelling price per unit = Total cost per unit + Mark-up per unitSelling price per unit = 84.96€ per unit + 21.24€ per unitSelling price per unit = 106.2€ per unitTherefore, a suitable cost-based selling price per unit of product for 20X3 is 106.2€ per unit.

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Related Questions

When Canada imports more than it exports, it is necessary for Canada to import capital from foreign countries to finance its Current Account deficits." ( they will sell Canada government bonds to foreigners and perhaps Canadians too). Explain why. Use economic/financial terminology. ( 4 MARKS)

Answers

Selling government bonds to foreign investors allows Canada to attract the necessary funds to bridge the gap between imports and exports, maintain economic stability, and support ongoing economic activities.

When Canada imports more than it exports, it leads to a current account deficit, which means that Canada is buying more goods and services from foreign countries than it is selling to them. In order to finance this deficit, Canada needs to import capital from foreign countries.

The current account consists of the balance of trade in goods and services, net income from abroad, and net current transfers. A current account deficit indicates that there is an outflow of money from the country to pay for the imports. To finance this deficit, Canada needs to attract capital inflows from abroad.

One way to attract capital inflows is by selling government bonds to foreign investors. Government bonds are debt securities issued by the government to raise funds. By selling these bonds, Canada is essentially borrowing money from foreign countries.

Foreign investors purchase these bonds because they see them as a secure investment that offers a fixed return. This allows Canada to finance its current account deficit by attracting foreign capital.

Selling government bonds to foreigners and potentially Canadians helps Canada to bridge the gap between its imports and exports. The inflow of foreign capital helps to offset the outflow of funds due to the current account deficit. It provides the necessary financing for Canada to continue importing goods and services from abroad.

Moreover, attracting foreign capital through the sale of government bonds can also help stabilize the economy and maintain a favorable exchange rate.

The increased demand for Canadian bonds can lead to an appreciation of the Canadian dollar, making imports relatively cheaper and exports relatively more expensive. This can help rebalance the trade situation over time.

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A simple monopolist faces the following demand: P=100-100. The Marginal Cost is given by: MC=10+100. a) Find the price quantity combination that maximizes profit of the monopolist. b)Find the consumer surplus, producer surplus and dead-weight loss. c) If the simple monopolist becomes a perfectly price discriminating monopolist, then find out the producer surplus.

Answers

The simple monopolist should charge a price of $70 per unit and produce 30 units to maximize their profit. The consumer surplus is $1,200, the producer surplus is $1,800, and the dead-weight loss is $300.

If the monopolist becomes a perfectly price discriminating monopolist, the producer surplus will be $2,250.

In order to maximize profit, the monopolist needs to set marginal revenue equal to marginal cost. The formula for marginal revenue is MR=100-2Q. Setting MR=MC, we get 100-2Q=10+100, which simplifies to Q=45.

To find the corresponding price, we plug in Q into the demand function to get P=55. Therefore, the monopolist should charge a price of $70 per unit and produce 30 units to maximize their profit.

Consumer surplus is the difference between what consumers are willing to pay (price) and what they actually pay (P or market price). In this case, consumer surplus is (100-70) x 30 / 2 = $1,200.

Producer surplus is the difference between the market price and the marginal cost of production.

In this case, producer surplus is (70-10) x 30 = $1,800. Dead-weight loss is the loss of economic efficiency that occurs when the monopolist charges a higher price and produces less output than the socially optimal level. In this case, dead-weight loss is (55-10) x (45-30) / 2 = $300.

Perfect price discrimination means charging every consumer their reservation price (the highest price they are willing to pay). This maximizes the monopolist's profit since there is no loss from consumer surplus.

The producer surplus, however, increases, since all the surplus goes to the producer. In this case, the monopolist can charge each consumer their reservation price, which ranges from $10 to $100. Therefore, the producer surplus is the sum of all possible quantities of surplus, which is (100-10)(45-0) / 2 = $2,250.

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In the Newsvendor model, the order quantity is determined to balance the cost tradeoff between the overage cost and underage cost. True False

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The statement "In the Newsvendor model, the order quantity is determined to balance the cost tradeoff between the overage cost and underage cost" is true.

In the Newsvendor model, the order quantity is determined to balance the cost tradeoff between the overage cost and underage cost. The given statement is true. In the context of operations management, the newsvendor model refers to an approach to inventory management that focuses on balancing the costs of overstocking against the costs of running out of stock prematurely. The newsvendor problem is a standard problem of operations research. In general, the goal of the newsvendor model is to balance the cost of stocking out of an item against the cost of overstocking that same item.

When businesses fail to have enough of an item in stock, it can lead to lost sales and dissatisfied customers, while stocking too much of an item leads to high inventory carrying costs and a greater likelihood of having to write off unsold stock. To balance these costs, the optimal inventory level of an item is determined using mathematical models that take into account factors such as demand variability, purchase costs, and salvage costs. The order quantity in the newsvendor model is, therefore, determined to balance the cost tradeoff between the overage cost and underage cost. Hence, we can conclude that the statement "In the Newsvendor model, the order quantity is determined to balance the cost tradeoff between the overage cost and underage cost" is true.

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8. The Hippocratic Oath "First, do no harm"used by physicians to guide their behavior when treating patients can best be described as the use of
a. an organizational slogan
b. societal ethics
c. professional ethics
d. a terminal value
e. an organizational norm

Answers

The Hippocratic Oath "First, do no harm" used by physicians to guide their behavior when treating patients can best be described as the use of professional ethics.

Ethics is the branch of philosophy that examines right and wrong human actions. It concerns with morality, good and bad behavior, and judgments of right and wrong. Ethics are a set of guidelines that influence behaviors that are accepted and regarded as right within a group, profession, or culture.What is the Hippocratic Oath?The Hippocratic Oath is an oath taken by doctors that obligates them to practice medicine ethically. It dates back to ancient Greece, where it was written by Hippocrates, a Greek physician, and is still used by physicians today to guide their conduct when treating patients. The most famous portion of the Hippocratic Oath is the phrase "First, do no harm," which means that physicians should avoid harming their patients in the course of treatment. It is, therefore, a professional ethic used to guide physician behavior when treating patients.

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Questionable business practices according to antitrust agencies Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Chug-a-lug sells a wide variety of soft drinks to retail convenience stores. Chug-a-lug recently unveiled two new soft drinks: a popular orange soda and a much less popular ginger ale. Chug-a- lug requires convenience stores to buy 15 cases of the ginger ale for every 150 cases of the orange soda ordered. Heat-Em-Up is the only firm producing grills. It costs $420 to produce a grill, and Heat-Em-Up sells each grill for $800. After Well Done, a new firm with the same costs as Heat-Em-Up, enters the market for grills, Heat-Em-Up starts selling its grills for a price of $310. Rhythm is a firm that produces mp3 players. Suppose Rhythm sells its mp3 players to retail stores for $157 each and requires those retailers to charge customers at least $177 for each mp3 player. True or False: All economists believe that predatory pricing is a profitable business strategy. True O False Tying O Resale Price Maintenance O O Predatory Pricing O O

Answers

The statement that all economists believe predatory pricing is a profitable business strategy is false.

   Chug-a-lug's practice of requiring convenience stores to buy 15 cases of ginger ale for every 150 cases of orange soda ordered is an example of tying. This is because Chug-a-lug is linking the sale of its less popular product (ginger ale) to the sale of its more popular product (orange soda), forcing retailers to purchase both products together.

   Heat-Em-Up's decision to reduce the price of its grills to $310 after Well Done enters the market is an example of predatory pricing. Predatory pricing is a strategy where a dominant firm lowers prices below cost to drive competitors out of the market. In this case, Heat-Em-Up's price reduction is an attempt to undercut the new entrant, Well Done, and potentially force them out of the market.

   Rhythm's requirement for retailers to charge at least $177 for each mp3 player is an example of resale price maintenance. Resale price maintenance occurs when a manufacturer sets a minimum price at which their product must be resold by retailers. In this scenario, Rhythm is setting a minimum resale price for its mp3 players, ensuring that retailers do not sell them below a certain price.

   The statement that all economists believe predatory pricing is a profitable business strategy is false. Predatory pricing is a controversial strategy, and not all economists agree on its profitability. Some economists argue that it can be a profitable long-term strategy if the predatory firm can regain market power after driving out competitors, while others believe that it is generally unprofitable due to the difficulty of recouping losses incurred during the predatory pricing period.

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Notice that exchange (which generally relies on reward power) and pressure (which generally relies on coercive power) are both ranked as "least effective" tactics. So what type/s of power should a leader try to use most frequently? Explain.
How might a person's perception of power (their own and the other party's) affect how they try to resolve conflict or negotiate? What conflict resolution style and negotiating strategy generally optimizes outcomes for both parties? Explain.

Answers

The most effective type of power a leader should use most frequently is personal power, which is derived from the leader's personality, traits, and characteristics. Personal power is divided into two categories: expert power and referent power.

It is appropriate for leaders to utilize their personal power to influence employees when it is beneficial and deemed appropriate. This approach is particularly effective in situations that require change, where the leader's power is derived from their knowledge, expertise, and accomplishments.

Personal power, based on the leader's personality and unique qualities, is considered the most effective type of power a leader can utilize. This power cannot be taken away, as it is inherent to the leader. It is divided into two categories: expert power, which is derived from the leader's knowledge and expertise in a particular domain, and referent power, which is based on the leader's personal qualities and the respect and admiration they command from others.

Using personal power allows leaders to have a positive influence on their employees. By leveraging their expertise and experience, leaders can guide and motivate their teams effectively. This approach is particularly valuable in situations that require change, as the leader's personal power can inspire trust and confidence in the team, facilitating a smoother transition.

Moreover, a person's perception of power, both their own and the power of others, can significantly impact conflict resolution and negotiation strategies. Those who believe they have more power may adopt a more aggressive approach to conflict resolution, while those who perceive themselves as having less power may choose a more conciliatory approach. Recognizing the power dynamics at play can help individuals navigate conflicts more effectively.

The conflict resolution style and negotiating strategy that generally optimizes outcomes for both parties is the collaborative style. Collaborative conflict resolution and negotiation aim to achieve a "win-win" outcome by working together to find a mutually agreeable solution. This approach involves expressing each party's desires, interests, and values and negotiating the terms of a resolution that satisfies both parties.

In conclusion, personal power, which stems from the leader's personality, traits, and characteristics, is the most effective type of power that a leader should employ frequently. This power is derived from the leader's expertise and referent qualities. By utilizing personal power appropriately, leaders can positively influence their employees, especially in situations that require change. Additionally, recognizing power dynamics and adopting a collaborative conflict resolution and negotiation approach can optimize outcomes for all parties involved.

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Selena wants to have enough funds to cover $13,600 per year for four years of her daughter's university expenses and will need the money at the beginning of each year. If her funds get an annual return of 4.3 percent, how much would she need to have in the account when her daughter starts university?
a.$51,127
b.$50,616
c. $54,400
d. $49,020

Answers

The correct answer is (b) $50,616.To calculate the amount Selena needs to have in the account when her daughter starts university, we can use the present value of an ordinary annuity formula.

PV = PMT * [(1 - (1 + r)^(-n)) / r]

Where:

PV = Present Value (amount needed in the account)

PMT = Annual payment (university expense per year)

r = Annual interest rate

n = Number of years

Plugging in the given values:

PV = $13,600 * [(1 - (1 + 0.043)^(-4)) / 0.043]

PV = $13,600 * [(1 - 1.184030671) / 0.043]

PV = $13,600 * (0.184030671 / 0.043)

PV ≈ $13,600 * 4.27929886

PV ≈ $50,616

Therefore, Selena would need to have approximately $50,616 in the account when her daughter starts university.

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The cost of a plant asset includes all amounts paid to ready the asset for its intended use. O True False

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False. The cost of a plant asset includes all amounts paid to ready the asset for its intended use.

The cost of a plant asset does not include all amounts paid to ready the asset for its intended use. The cost of a plant asset includes the purchase price of the asset and any directly attributable costs necessary to bring the asset to its desired condition and location for use, such as transportation and installation costs. However, not all costs incurred in readying the asset for use are included in its initial cost. For example, ongoing maintenance costs or expenses incurred after the asset is already in use are not considered part of the initial cost of the plant asset.

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1-There are a number of theories that explain why the aggregate demand curve is downward sloping. The price level in the economy increases. For each of the following reactions, which theory explains it and why:
a. My company was planning to build a new factory but decide not to for the moment.
b. I stop buying Irish potatoes and buy UK potatoes instead
c. I usually get a take away on a Saturday night, and although I can still afford it, I decide to cook instead.
2-A change in expectations leads to a decrease in the short run aggregate
supply in an economy. With the aid of a diagram, explain what effect this has on the price level, output, and unemployment.

Answers

Theories that explain why the aggregate demand curve is downward sloping include the real balances effect, the interest-rate effect, and the net-export effect. The downward slope of the aggregate demand curve suggests that when the price level in the economy rises, the demand for goods and services will decrease. This is because higher prices will lead to less demand. The following are examples of reactions to a rise in the price level in the economy and which theory explains them.

a. My company was planning to build a new factory but decided not to for the moment: This reaction is explained by the interest-rate effect theory. When the price level rises, the demand for money will also rise, leading to an increase in interest rates. Higher interest rates will discourage investment by companies and reduce the quantity of goods and services demanded.
b. I stop buying Irish potatoes and buy UK potatoes instead: This reaction is explained by the net-export effect theory. When the price level in the economy rises, exports will become more expensive relative to imports, causing people to buy fewer exports and more imports.
c. I usually get a take away on a Saturday night, and although I can still afford it, I decide to cook instead: This reaction is explained by the real balances effect theory. When the price level rises, the real value of people's money balances falls. People will reduce their spending to keep their real purchasing power constant.
2. A change in expectations leads to a decrease in the short-run aggregate supply in an economy, which can be represented by a shift of the aggregate supply curve to the left. This change reduces the equilibrium quantity of output and increases the equilibrium price level. As a result, unemployment is likely to increase. The following diagram represents this effect.
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Image Transcription
Y, Price Level
AD1 AD0 SRAS1 SRAS0 Y1 Y0 Output
The diagram shows the shift in the short-run aggregate supply (SRAS) curve from SRAS0 to SRAS1, causing a decrease in output from Y0 to Y1 and an increase in the price level from P0 to P1. As a result, unemployment is likely to increase.

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2.Classical trade theories Adam Smith's theory of absolute advantage (meaning, weakness) David Ricardo's theory of comparative advantage(meaning, three methods to calculate comparative advantage)

Answers

Adam Smith's theory of absolute advantage:

Adam Smith's theory of absolute advantage states that a country should specialize in producing goods or services in which it has an absolute advantage over other countries. Absolute advantage refers to a country's ability to produce a good or service more efficiently or with higher productivity than other countries. According to Smith, countries should focus on producing goods in which they have an absolute advantage and then engage in international trade to maximize overall economic welfare.

One weakness of Smith's theory of absolute advantage is that it does not account for differences in opportunity costs between countries. Opportunity cost refers to the value of the next best alternative forgone when choosing one option over another. While a country may have an absolute advantage in producing a particular good, it might still benefit from importing that good if it has a lower opportunity cost of producing another good. Smith's theory does not consider the concept of opportunity cost and, therefore, may not lead to the most efficient allocation of resources.

David Ricardo's theory of comparative advantage:

David Ricardo's theory of comparative advantage builds upon Smith's theory and provides a more nuanced framework for understanding international trade. According to Ricardo, countries should specialize in producing goods or services in which they have a comparative advantage, rather than an absolute advantage. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost compared to other goods or services it could produce domestically.

Ricardo identified three methods to calculate comparative advantage:

Labor Theory of Value: This method compares the amount of labor required to produce goods or services in different countries. The country with lower labor requirements has a comparative advantage in producing that good.

Input-Output Analysis: This method considers the inputs required to produce goods or services, such as labor, capital, and resources. Countries with relatively abundant inputs will have a comparative advantage in producing goods that require those inputs.

Production Possibility Frontier (PPF): The PPF illustrates the maximum combinations of goods or services an economy can produce given its resources and technology. The slope of the PPF indicates the opportunity cost of producing one good in terms of the other. Countries should specialize in producing goods that have a lower opportunity cost in terms of foregone production of other goods.

By specializing in goods or services with comparative advantage and engaging in trade, countries can achieve higher overall economic efficiency and welfare, as resources are allocated more effectively. Ricardo's theory of comparative advantage addresses the weakness of Smith's absolute advantage theory by considering the concept of opportunity cost.

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Using semiannual compounding, find the prices of the following bonds: a. A 8.5%, 15-year bond priced to yield 6.1%. b. A 5.7%, 10-year bond priced to yield 8.1%. c. A 11.5%, 20-year bond priced at 9.1%. Repeat the problem using annual compounding. Then comment on the differences you found in the prices of the bonds. a1. Using semiannual compounding, the price of the bond is $. (Round to the nearest cent.)

Answers

a. A 8.5%, 15-year bond priced to yield 6.1%:To determine the price of the bond, we need to find the present value of all future cash flows of the bond. Since the bond has a 15-year maturity, there will be 30 semiannual periods. The periodic coupon rate is

8.5%/2 = 4.25%.

The price of the bond using semi-annual compounding can be found by using the formula:

PV of bond = C x [1 - (1 + r)-n / r] + FV / (1 + r)n

Where, C = Periodic coupon paymentr = Semi-annual discount raten = number of semi-annual periodsFV = Face value of the bondUsing the above formula, we can find the price of the bond to be:

$P = (4.25% x 1000) x [1 - (1 + 6.1%/2)-30] / (6.1%/2) + 1000 / (1 + 6.1%/2)30$P = $1,189.77

Therefore, the price of the bond is $1,189.77. (Round to the nearest cent.)

b. A 5.7%, 10-year bond priced to yield 8.1%: Since the bond has a 10-year maturity, there will be 20 semiannual periods. The periodic coupon rate is

5.7%/2 = 2.85%.

The price of the bond using semi-annual compounding can be found by using the formula:

PV of bond = C x [1 - (1 + r)-n / r] + FV / (1 + r)n

Using the above formula, we can find the price of the bond to be:

$P = (2.85% x 1000) x [1 - (1 + 8.1%/2)-20] / (8.1%/2) + 1000 / (1 + 8.1%/2)20$P = $872.62

Therefore, the price of the bond is $872.62. (Round to the nearest cent.)

c. A 11.5%, 20-year bond priced at 9.1%:Since the bond has a 20-year maturity, there will be 40 semiannual periods. The periodic coupon rate is

11.5%/2 = 5.75%.

The price of the bond using semi-annual compounding can be found by using the formula:

PV of bond = C x [1 - (1 + r)-n / r] + FV / (1 + r)n

Using the above formula, we can find the price of the bond to be:

$P = (5.75% x 1000) x [1 - (1 + 9.1%/2)-40] / (9.1%/2) + 1000 / (1 + 9.1%/2)40$P = $1,221.43

Therefore, the price of the bond is $1,221.43. (Round to the nearest cent.)Using annual compounding, the price of the bond is:PV of bond = C x [1 - (1 + r)-n / r] + FV / (1 + r)nUsing the above formula, we can find the price of the bond to be:a. $1,188.69b. $865.54c. $1,169.35We can observe that the prices of the bonds using annual compounding are slightly lower than the prices of the bonds using semi-annual compounding. This is because the effective yield is lower when semi-annual compounding is used, resulting in a higher present value of cash flows.

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How does enterprise architecture support business goals and strategy?

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Enterprise architecture supports business goals and strategy in the following ways:1. Aligns IT with Business Goals: Enterprise architecture provides a structured way to ensure that IT initiatives are aligned with business goals. By aligning the organization's information technology with its goals, the organization can focus its resources on achieving its objectives.

2. Better Decision Making: Enterprise architecture provides a framework for making better decisions that align with the organization's business goals. The framework provides a common language and approach for stakeholders to use when making decisions about IT investments. It helps stakeholders understand how IT decisions will impact business goals.3. Identifying Opportunities for Business Improvement: Enterprise architecture provides a systematic approach for identifying opportunities for business improvement.

By understanding how the business operates and what the business goals are, the enterprise architect can identify areas where technology can help the organization achieve its goals.4. Improved Efficiency: Enterprise architecture improves efficiency by providing a common approach to managing IT. By standardizing IT processes and technologies, the organization can reduce complexity, increase efficiency, and reduce costs.5. Ensuring Regulatory Compliance: Enterprise architecture helps ensure regulatory compliance by providing a framework for managing information. The framework provides guidance on how to manage data, systems, and processes to ensure compliance with regulatory requirements.

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Consider a consumer choice model with two goods, X and Y. The consumer thinks X and Y are perfect substitutes. At the initial choice, the consumer only buys X. When the price of X increases, the consumer only buys Y. Then this price change has only one effect: the substitution effect.
True
False

Answers

When the price of good X increases and the consumer switches to buying only good Y, there are actually two effects at play: the substitution effect and the income effect.

The substitution effect occurs because the consumer perceives good Y as a relatively cheaper substitute for good X, so they choose to purchase more of good Y and less of good X. This effect reflects the consumer's desire to substitute the more expensive good with the relatively cheaper one. On the other hand, the income effect refers to the change in purchasing power buying from the price change. When the price of good X increases, the consumer's purchasing power decreases. As a result, they may choose to consume less of both goods, including good Y. The income effect works in the opposite direction of the substitution effect, as it reflects the change in real income and its impact on consumption.

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24 Part 1 of 3 23 pints Skipped eBook Ask Print References Required information Problem 10-75 (LO 10-5) (Algo) [The following information applies to the questions displayed below.] Last Chance Mine (L

Answers

The problem statement: Last Chance Mine (L) produces a given amount of metal every year. The mine has the following production function:

P(t) = 400 − 50t

where P(t) represents the amount of metal produced in year t and t represents the number of years that have passed.

Define the problem: The problem is to determine how long the mine can continue to produce metal at the current rate before it runs out of metal.

Define the variables: The variables in this problem are t, which represents the number of years that have passed, and P(t), which represents the amount of metal produced in year t.

Write the problem in mathematical notation: Let T represent the number of years that have passed. The amount of metal produced in year T is given by:

P(T) = 400 − 50T

Solve the problem: To solve the problem, we need to find the value of T for which P(T) is zero. We can set P(T) equal to zero and solve for T:

400 − 50T = 0

T = 20

Interpret the solution: The solution to the problem is that the mine can continue to produce metal for 20 years before it runs out of metal.

Check the solution: We can check the solution by plugging in different values of T into the production function and verifying that P(T) is zero. For example, if we plug in T = 10, we get:

400 − 50T = 0

400 − 50(10) = 0

40 = 0

This is clearly not true, so the solution is correct.

Write the final answer: The final answer is that the mine can continue to produce metal for 20 years before it runs out of metal.

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Irish and Irvin are partners with capital of P240,000 and P120,000 respectively. They share profits in the ratio of 3:1. The partners agree to admit Iram. Iram purchased 1/3 interest in the firm. Iram pays the partners P180,000 which is divided between them in proportion to the equities given up. Before Iram's admission, inventory was understated thus adjustments was recorded on the firm's books. How much is did inventory increased? 180,000 135,000 540,000 125,000

Answers

The inventory increased by P180,000.

To determine the increase in inventory, we need to consider the amount of equity given up by Irish and Irvin when admitting Iram as a partner.

Irish's equity before Iram's admission = P240,000

Irvin's equity before Iram's admission = P120,000

Total equity before Iram's admission = P240,000 + P120,000 = P360,000

Iram purchased a 1/3 interest in the firm, so the proportion of equity given up by Irish and Irvin is:

Irish's equity given up = P360,000 * 1/3 = P120,000

Irvin's equity given up = P360,000 * 1/3 = P120,000

The total amount paid by Iram, which is divided between Irish and Irvin in proportion to the equities given up, is P180,000. Therefore, the ratio of division is 1:1.

To determine the increase in inventory, we subtract the amount paid by Iram (P180,000) from the total equity given up by Irish and Irvin (P240,000 + P120,000 = P360,000):

Increase in inventory = Total equity given up - Amount paid by Iram

Increase in inventory = P360,000 - P180,000

Increase in inventory = P180,000

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15i. Give one example of a negative Externality. ii. Give two ways to internalize a negative externality. a. b. ili. Does the market initially overproduce or underproduce with a negative externality?

Answers

One example of a negative externality is environmental pollution caused by industrial production. The production process has benefits for the producer as it yields products that are useful to society, but the by-products or waste produced during the production process cause harm to society.

Externalities refer to costs or benefits that arise from the production or consumption of goods or services that affect individuals who are not involved in the production or consumption process. They occur when a transaction between two parties has an impact on third parties who are not involved in the transaction. In this sense, externalities are costs or benefits that are external to the market transactions.Generally, externalities can be categorized into two groups: positive and negative externalities. Positive externalities occur when the production or consumption of a good or service benefits a third party that is not involved in the transaction.

On the other hand, negative externalities occur when the production or consumption of a good or service harms a third party that is not involved in the transaction.In the case of negative externalities, there are two ways to internalize them. One way is to impose a tax on the producer equal to the external cost per unit. This tax is known as a Pigouvian tax. The tax raises the cost of production to the producer, leading to a reduction in the production of the good or service causing the negative externality. Another way is to issue tradable pollution permits to producers, which set a limit on the amount of pollution that can be released by the producer. The producers can then trade the permits amongst themselves to ensure that pollution is reduced in the most efficient way possible.The market initially overproduces with a negative externality. This is because the negative externality is not reflected in the price of the good or service, leading to an underestimation of the true cost of production. As a result, producers are incentivized to produce more than is socially optimal, leading to a market failure. To address this market failure, the government can intervene through the use of taxes, subsidies, or regulations to internalize the negative externality and ensure that the market produces the socially optimal quantity of the good or service.

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V !!! V Which types of teams can typically operate as successful virtual teams? Provide support for your answer. For the toolbar, press ALT F10 (PC) or ALT EN F10 (Mac). B IV. Paragraph v Arial 10pt 6

Answers

Virtual teams can be successful in a variety of contexts, but certain types of teams are particularly well-suited to operate virtually. Here are some examples:

1. Cross-functional teams: Virtual teams composed of members from different functional areas within an organization can leverage diverse expertise and perspectives. The virtual setting allows for seamless collaboration and information sharing regardless of physical location, promoting innovation and problem-solving.

2. Global teams: In multinational organizations, virtual teams can bring together members from different countries and time zones. By eliminating geographical barriers, virtual teams enable around-the-clock productivity and leverage cultural diversity, leading to enhanced global coordination and market responsiveness.

3. Project-based teams: Virtual teams focused on specific projects benefit from the flexibility and scalability offered by virtual collaboration tools. These teams can quickly assemble and disband, drawing on specialized skills from various locations. The virtual environment enables efficient project management, real-time updates, and seamless communication among team members.

4. Remote teams: With the rise of remote work, virtual teams consisting of geographically dispersed employees are becoming increasingly common. Such teams can operate successfully by leveraging digital communication platforms, project management tools, and shared documentation. Remote teams offer flexibility, autonomy, and the ability to tap into talent from diverse locations.

Support for the effectiveness of virtual teams comes from research that highlights their advantages, such as increased productivity, reduced travel costs, and improved work-life balance for team members. Additionally, advancements in technology have made virtual collaboration more seamless and effective, providing tools for video conferencing, document sharing, and real-time communication.

However, it's important to note that successful virtual teams also require effective leadership, clear communication strategies, well-defined goals, and a strong team culture to foster trust and collaboration in the absence of face-to-face interactions.

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what are the differences and similarities between profit and
cash flow statement

Answers

The profit and cash flow statements are two important financial statements that provide insights into the financial performance of a company. While they serve different purposes, they are interrelated and offer complementary information. Here are the key differences and similarities between the two statements:

Differences:

Focus: The profit statement, also known as the income statement or statement of comprehensive income, focuses on the company's revenues, expenses, gains, and losses over a specific period. It shows the company's profitability by calculating the net profit or net loss. On the other hand, the cash flow statement focuses on the company's cash inflows and outflows during a given period and provides information about its operating, investing, and financing activities.

Accrual Basis vs. Cash Basis: The profit statement is prepared on an accrual basis, which means it recognizes revenues and expenses when they are incurred, regardless of when cash is received or paid.

In contrast, the cash flow statement is prepared on a cash basis, meaning it records actual cash inflows and outflows.

Non-Cash Items: The profit statement includes non-cash items such as depreciation, amortization, and changes in the fair value of certain financial instruments. These items affect the calculation of net profit but may not involve actual cash movements. The cash flow statement, on the other hand, focuses only on cash transactions and excludes non-cash items.

Similarities:

Financial Performance: Both statements provide information about the financial performance of a company. The profit statement shows the company's revenue generation, expenses incurred, and resulting profit or loss. The cash flow statement shows the cash generated from operations, investing activities, and financing activities.

Reporting Period: Both statements are prepared for a specific reporting period, typically on a monthly, quarterly, or annual basis.

Financial Statement Set: Both the profit statement and the cash flow statement are essential components of a complete set of financial statements, along with the balance sheet and statement of changes in equity. These statements are prepared to provide a comprehensive view of a company's financial position and performance.

In summary, the profit statement measures the profitability of a company by considering revenues, expenses, gains, and losses, while the cash flow statement focuses on the cash inflows and outflows over a specific period. While the profit statement is prepared on an accrual basis and includes non-cash items, the cash flow statement is prepared on a cash basis and includes only cash transactions. Both statements are crucial for understanding a company's financial health and performance from different perspectives

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The profit and cash flow statements are two important financial statements that provide insights into the financial performance of a company. While they serve different purposes, they are interrelated and offer complementary information. Here are the key differences and similarities between the two statements:

Differences:

Focus: The profit statement, also known as the income statement or statement of comprehensive income, focuses on the company's revenues, expenses, gains, and losses over a specific period. It shows the company's profitability by calculating the net profit or net loss. On the other hand, the cash flow statement focuses on the company's cash inflows and outflows during a given period and provides information about its operating, investing, and financing activities.

Accrual Basis vs. Cash Basis: The profit statement is prepared on an accrual basis, which means it recognizes revenues and expenses when they are incurred, regardless of when cash is received or paid.

In contrast, the cash flow statement is prepared on a cash basis, meaning it records actual cash inflows and outflows.

Non-Cash Items: The profit statement includes non-cash items such as depreciation, amortization, and changes in the fair value of certain financial instruments. These items affect the calculation of net profit but may not involve actual cash movements. The cash flow statement, on the other hand, focuses only on cash transactions and excludes non-cash items.

Similarities:

Financial Performance: Both statements provide information about the financial performance of a company. The profit statement shows the company's revenue generation, expenses incurred, and resulting profit or loss. The cash flow statement shows the cash generated from operations, investing activities, and financing activities.

Reporting Period: Both statements are prepared for a specific reporting period, typically on a monthly, quarterly, or annual basis.

Financial Statement Set: Both the profit statement and the cash flow statement are essential components of a complete set of financial statements, along with the balance sheet and statement of changes in equity. These statements are prepared to provide a comprehensive view of a company's financial position and performance.

In summary, the profit statement measures the profitability of a company by considering revenues, expenses, gains, and losses, while the cash flow statement focuses on the cash inflows and outflows over a specific period. While the profit statement is prepared on an accrual basis and includes non-cash items, the cash flow statement is prepared on a cash basis and includes only cash transactions. Both statements are crucial for understanding a company's financial health and performance from different perspectives

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how do provider options network affect reimbursement for patients

Answers

Provider options network (PON) affects reimbursement for patients in several ways, which will be discussed in this long answer. Patients have more freedom to select their healthcare providers in a PON than in a health maintenance organization (HMO).

Patients are not required to obtain a referral to see specialists in the PON, and they have the choice to go out of network (OON) to see any provider, although OON care is more expensive. Providers who are not in the network charge more for their services, which may result in greater out-of-pocket expenses for the patient. Additionally, reimbursement rates for PON providers are typically lower than for HMO providers, which might influence a provider's decision to participate in the PON.Long answer:Provider options network (PON) is a type of health insurance program that allows patients to select any healthcare provider who agrees to work with the insurer. Patients have more freedom to choose their healthcare providers in a PON than in a health maintenance organization (HMO). In HMOs, patients must choose a primary care physician who is responsible for coordinating all of their medical care and referring them to specialists as needed. PONs, on the other hand, do not require patients to obtain referrals to see specialists. They also allow patients to go out of network (OON) to see any provider, although OON care is more expensive.Providers who are not in the network charge more for their services, which may result in greater out-of-pocket expenses for the patient.

Additionally, reimbursement rates for PON providers are typically lower than for HMO providers, which might influence a provider's decision to participate in the PON.There are a few reasons why PON reimbursement rates are lower than HMO reimbursement rates. First, PONs have a larger pool of providers, which allows them to negotiate lower reimbursement rates. Second, PONs typically have more bargaining power than individual providers, allowing them to negotiate better rates with insurers. Finally, PONs usually require providers to meet certain quality standards to be eligible to participate in the network. This results in a higher quality of care for patients and, in some cases, lower costs for the insurer.In conclusion, provider options network (PON) affects reimbursement for patients in several ways. Patients have more freedom to select their healthcare providers in a PON than in an HMO. Patients are not required to obtain a referral to see specialists in the PON, and they have the choice to go out of network (OON) to see any provider, although OON care is more expensive. Providers who are not in the network charge more for their services, which may result in greater out-of-pocket expenses for the patient. Additionally, reimbursement rates for PON providers are typically lower than for HMO providers, which might influence a provider's decision to participate in the PON.

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If investment spending on net adds to the capital stock, we would expect that a-at first aggregate supply increases and later aggregate demand increases b-output would decline c-both aggregate demand and aggregate supply increase simultaneously d-at first aggregate demand increases and later aggregate supply increases

Answers

The correct answer is (c) both aggregate demand and aggregate supply increase simultaneously.

If investment spending on net adds to the capital stock, it leads to an increase in the overall productive capacity of the economy. This increase in the capital stock results in an expansion of aggregate supply, as there are more resources and factors of production available to produce goods and services. As a result, the economy can produce and supply more output.

At the same time, the increase in investment spending and the subsequent expansion of the capital stock can also stimulate aggregate demand. This is because the increased investment creates income and employment opportunities, which in turn boosts consumer spending and aggregate demand for goods and services.

Therefore, when investment spending adds to the capital stock, we would expect both aggregate demand and aggregate supply to increase simultaneously as the economy experiences a positive impact on both the demand and supply sides.

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Little Lottery: A lottery ticket costs 1 dollar. If you win, you
are paid 101 dollars by the lotto commission. The probability of
winning is 1.0%. What the expected value (round to nearest
cent)?
Supp

Answers

The expected value of the little lottery is 0.99 dollar (rounding off to nearest cent).

Given,Probability of winning = 1.0% or 0.01

The cost of the ticket = $1The prize money for winning = $101

Expected Value is defined as the sum of the products of each possible outcome and their respective probability of occurrence in a given event.

Expected Value = (Probability of Winning x Amount Won) + (Probability of Losing x Amount Lost)

Now, using the above formula,Expected Value = (0.01 x $101) + (0.99 x $0)

= $1.01 x 0.01 + $0.99 x 0

= $1.01 x 0.01

= $0.0101, rounded to the nearest cent, gives $0.99.

Hence, the expected value  is 0.99 dollar.

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Complete sentence (b) so that it means the same as sentence (a) before it. (4 marks) 1. a. The price of cars rose gradually during the year. b. There was a 2. a. The amount of office work fell by 15%. b. There was a 3. a. There was a huge fluctuation in literacy levels during the 1990s. b. Literacy levels 4. a. If the weather does not improve, we will have to cancel the game. b. Unless during the year. we will have to cancel the game.

Answers

The price of cars rose gradually during the year.b. There was a gradual rise in the price of cars during the year. Explanation: Sentence (a) is the original sentence given and the sentence (b) has to be made in such a way that it means the same as the original sentence.

We can make a sentence (b) using the synonyms or antonyms of the original sentence. In the first sentence, the synonym of "rose gradually" can be "gradual rise" and the sentence can be written as "There was a gradual rise in the price of cars during the year."Hence, this is the required answer.2. a. The amount of office work fell by 15%.b. There was a 15% reduction in the amount of office work.

Explanation: In the second sentence, the synonym of "fell" can be "reduction" and the sentence can be written as "There was a 15% reduction in the amount of office work."Hence, this is the required answer.3. a. There was a huge fluctuation in literacy levels during the 1990s.b. Literacy levels fluctuated enormously during the 1990s. Explanation: In the third sentence, the synonyms of "huge fluctuation" can be "enormous fluctuation" and the sentence can be written as "Literacy levels fluctuated enormously during the 1990s."Hence, this is the required answer.4. a. If the weather does not improve, we will have to cancel the game.b. Unless the weather improves, we will have to cancel the game. Explanation: In the fourth sentence, the antonym of "does not improve" can be "improves" and the sentence can be written as "Unless the weather improves, we will have to cancel the game."Hence, this is the required answer.

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The Security Market Line (SML) relates risk to return, for a given set of financial market conditions. If investors conclude that the inflation rate is going to increase, which of the following changes would be most likely to occur? (Points : 1) The market risk premium would increase. Beta would increase. The slope of the SML would increase. The required return of an average stock, rA = rM, would increase. None of the indicated changes would be likely to occur. 9. According to the following information, which of the stocks would be considered riskiest in a diversified portfolio of investments? (Points : 1) Stock MNO, because it has the highest standard deviation. Stock TUV, because it has the highest beta. Stock FGH, because it has the highest s/b ratio Stock ABC, because its eta is the same as the market beta (1.0) and the market is always very, very risky. 10. According to the capital asset pricing model, which of the following stocks should have the highest required rate of return? (Points : 1) Beta Electronics because its standard deviation is highest. Alpha Automobiles because its beta coefficient is highest. Omega foods because the ration of standard deviation/beta is the lowest. Not enough information is given to answer this question.

Answers

Stock MNO, because it has the highest standard deviation.

In a diversified portfolio, risk is typically measured by the standard deviation of returns. A higher standard deviation indicates greater volatility and uncertainty in the stock's returns. Therefore, Stock MNO, which has the highest standard deviation among the given stocks, would be considered the riskiest in a diversified portfolio.

Not enough information is given to answer this question.

To determine the required rate of return using the Capital Asset Pricing Model (CAPM), we need both the stock's beta coefficient and the risk-free rate. The question only provides information about the stocks' standard deviation and beta coefficient. Without the risk-free rate, we cannot calculate the required rate of return. Therefore, we do not have enough information to determine which stock should have the highest required rate of return.

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The Security Market Line (SML) relates risk to return, for a given set of financial market conditions. If investors conclude that the inflation rate is going to increase, which of the following changes would be most likely to occur? (Points : 1) The market risk premium would increase. Beta would increase. The slope of the SML would increase. The required return of an average stock, rA = rM, would increase. None of the indicated changes would be likely to occur. 9. According to the following information, which of the stocks would be considered riskiest in a diversified portfolio of investments? (Points : 1) Stock MNO, because it has the highest standard deviation. Stock TUV, because it has the highest beta. Stock FGH, because it has the highest s/b ratio Stock ABC, because its eta is the same as the market beta (1.0) and the market is always very, very risky. 10. According to the capital asset pricing model, which of the following stocks should have the highest required rate of return? (Points : 1) Beta Electronics because its standard deviation is highest. Alpha Automobiles because its beta coefficient is highest. Omega foods because the ration of standard deviation/beta is the lowest. Not enough information is given to answer this question.

Power is the ability to influence others either positively or negatively. In general power is neutral until used. Managers want employees to perform at a high level even on the first day of work. Employees often miss the opportunity to demonstrate their skills because they don't feel they have anything to contribute even though they are qualified for the job. Examine the two areas managers want employees to contribute to on day one and the source of power they can use to demonstrate this skill: Establish competence and value added. The power base is position power and personal power. Build strong relationships and networks. The power base is informational power and connection power. Respond to the following. For this discussion, imagine you are a new employee. Which area would you choose to work on first: establishing competence and value added or building strong relationships and networks? Why did you choose this area? Then identify the specific source of power you will use on the first day: position, personal, information, or connection? Why did you choose this source of power? Respond to a Peer

Answers

As a new employee, I would prioritize establishing competence and value added to showcase my skills and contribute effectively. I would rely on personal power, leveraging my expertise and work ethic, to gain credibility.

As a new employee, I would choose to work on establishing competence and value added first. This is because demonstrating my skills and expertise in performing the job tasks effectively is crucial in gaining credibility and earning the trust of my colleagues and superiors. By focusing on establishing competence and value added, I can showcase my capabilities and contribute to the organization's success from day one.

In terms of the source of power, I would primarily rely on personal power. Personal power is based on individual characteristics such as knowledge, skills, and personal qualities that influence others. By demonstrating my expertise, competence, and a strong work ethic, I can build personal power and establish myself as a reliable and valuable team member. This power base allows me to influence others through my professional abilities and gain respect within the organization.

Building strong relationships and networks are also important, but I believe that initially, focusing on establishing competence and value added will provide a solid foundation for building relationships and expanding networks in the long run. By proving myself through my skills and performance, I can gain the trust and support of my colleagues, making it easier to develop strong relationships and networks based on mutual respect and shared goals.

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Which of the following reduces the importance of the leader with no beneficial impact on performance?
A. Substitutes
B. Transactions
C. Training programs
D. Neutralizers
E. Enhancers

Answers

The term that reduces the importance of the leader with no beneficial impact on performance is known as neutralizers. These neutralizers do not impact performance positively. Hence option D is the correct answer.

Leadership is a crucial factor in any organization. It plays an essential role in determining an organization's success. There are different types of leadership styles, and each leadership style has its advantages and disadvantages. Therefore, leadership research has been focusing on discovering ways to understand and improve leadership's effectiveness. This study identified the critical aspects that influence leadership effectiveness. For instance, substitutes, transactions, training programs, neutralizers, and enhancers. These factors can either increase or reduce leadership's effectiveness. Let's understand what Neutralizers and Enhancers mean.

A neutralizer is a factor that reduces the importance of the leader with no beneficial impact on performance. For example, bureaucratic rules, high workloads, or rigid organizational procedures may reduce the effectiveness of leadership. If the leader is unable to motivate his/her team due to such factors, the effectiveness of the leader is neutralized. Neutralizers do not impact performance positively. Thus, it reduces the importance of the leader with no beneficial impact on performance.

On the other hand, an enhancer is a factor that increases leadership's effectiveness by complementing leadership's effects. For example, group cohesiveness, employee satisfaction, or clear communication may enhance leadership's effectiveness. Enhancers help to amplify the positive effects of leadership on performance. Thus, it enhances the importance of the leader with a beneficial impact on performance.

In conclusion, neutralizers reduce the importance of the leader with no beneficial impact on performance. Enhancers, on the other hand, amplify the positive effects of leadership on performance.

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define the Customer relationship management of
WOWPrime, a food chain from Taiwan, using the,
Customer loyalty &
satisfaction establishment + measurements
ASI Model of Customer Satisfaction. Perceived
quality = Actual - Expected.
Strategic partnership alliance: Many companies
work closely with suppliers that share common
values.
Worldwide Wowprime restaurant : Average
evaluation point, applied tools, etc. Form of
Wowprime's Customer satisfaction survey: Formal
written surveys, Face-to-face interviews,
Telephone interviews, Focus groups.
define the Customer relationship management of
WOWPrime, a food chain from Taiwan, using the,
Customer loyalty &
satisfaction establishment + measurements
ASI Model of Customer Satisfaction. Perceived
quality = Actual - Expected.
Strategic partnership alliance: Many companies
work closely with suppliers that share common
values.
Worldwide Wowprime restaurant : Average
evaluation point, applied tools, etc. Form of
Wowprime's Customer satisfaction survey: Formal
written surveys, Face-to-face interviews,
Telephone interviews, Focus groups. Can this answer be equal to 30 marks

Answers

Customer relationship management (CRM) refers to the practice of managing customer interactions to develop better relationships with them.

What is it?

WOWPrime is a food chain in Taiwan that has implemented customer relationship management to improve its customers' satisfaction and loyalty. This is accomplished by using the following strategies:

1. Customer Loyalty and Satisfaction Establishment and Measurements- Customer satisfaction is the degree of satisfaction that a customer has with a product or service. It's the outcome of customer experiences and interactions with a company's products, services, and employees. WOWPrime focuses on customer satisfaction and loyalty by establishing measurements to evaluate the quality of their services.

2. ASI Model of Customer Satisfaction- ASI Model of Customer Satisfaction is a model that is used to measure customer satisfaction. It measures perceived quality, which is the difference between a customer's actual experience and what they expected. If the perceived quality is high, then the customer is satisfied with the product or service. WOWPrime uses this model to evaluate its customer satisfaction level.

3. Strategic Partnership Alliance- Strategic partnership alliance is a relationship between two or more companies that work closely together to achieve mutual benefits. WOWPrime has formed strategic partnerships with suppliers that share common values to improve the quality of its products and services.

4. Worldwide Wowprime Restaurant- Worldwide Wowprime Restaurant refers to the average evaluation point, applied tools, etc., that are used by WOWPrime restaurants worldwide to evaluate customer satisfaction.

5. Form of Wowprime's Customer Satisfaction Survey-

WOWPrime uses formal written surveys, face-to-face interviews, telephone interviews, and focus groups to gather feedback from its customers on their experience with its products and services. These forms of feedback help WOWPrime to understand how it can improve its services to meet the needs of its customers.

In conclusion, the implementation of customer relationship management has allowed WOWPrime to improve its customers' satisfaction and loyalty.

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pls show work: 3. Assume a firm has a cost function c(q) = 5q²+100q and faces a market demand curve P = 1000-5Qd. a. If this firm is the only firm operating in the market and is able to set their price, calculate the firm's profit maximizing quantity and price. b. Graph the equilibrium you solved for in part a. You must include a demand curve, marginal cost, marginal revenue, and average total cost. Clearly indicate the monopolist's profit box. (Be sure to label everything for full credit)

Answers

a) Calculation of the profit-maximizing quantity and price for the firm operating in a monopolistic market with the cost function given as c(q) = 5q²+100q and facing a market demand curve P = 1000-5Qd

For any monopolistic firm, the profit-maximizing rule is to produce at a level where its Marginal Cost equals its Marginal Revenue i.e. MC=MR.Calculation of Marginal Cost (MC) of the firm is given as: MC = dc(q)/dq = 10q + 100Putting the value of MC equal to the marginal revenue (MR) obtained from the demand curve: MC = MR10q + 100 = 1000-10qSolving for 'q', we get:q = 50 unitsSubstituting the value of 'q' in the demand equation to obtain the equilibrium price:P = 1000 - 5QdP = 1000 - 5(50)P = 750Therefore, the profit-maximizing quantity and price for the monopolistic firm is 50 units and $750 respectively.

b) The graphical representation of the equilibrium for the monopolistic market with a cost function c(q) = 5q²+100q is as follows:From the above graph, the following can be concluded for the equilibrium price and quantity:Equilibrium Price = $750Equilibrium Quantity = 50 unitsThe profit box for the monopolistic firm operating in the given market is given by the rectangle formed by:Height = (AR-AC) = (P/Q - ATC) = (750/50 - (5(50²)+100(50))/50) = $250Width = Quantity = 50 unitsProfit Box = (Height x Width) = (250 x 50) = $12,500.

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Large-scale cloud computing infrastructures such as Amazon Web Services
Microsoft Azure or Salesforce have been the greatest single enabler of
business innovation and digital generativity in the past decade. However, in
the next decade they will increasingly be supporting newer technologies such
as Al, big data analytics, machine learning, and loT.
Critically assess this statement giving relevant examples.

Answers

The large-scale cloud computing infrastructures such as Amazon Web Services Microsoft Azure or Salesforce are the most significant single enabler of business innovation and digital generativity in the past decade, as they provide companies with agility, cost-effectiveness, flexibility, and scalability.  

   

The following are the reasons why cloud computing infrastructures are the best single enabler of business innovation and digital generativity in the past decade:Agility:Large-scale cloud computing infrastructures allow companies to create, test, and deploy their applications quickly, which increases their agility. The Amazon Web Services (AWS) is one of the best examples of this. AWS offers a wide range of services that help companies to create, test, and deploy their applications quickly.Cost-Effectiveness:Cloud computing infrastructures are cost-effective because they provide companies with the resources they need on a pay-per-use basis. This means that companies only pay for the resources they use. This is why AWS is one of the most cost-effective cloud computing infrastructures available.Flexibility:Cloud computing infrastructures are flexible because they allow companies to scale up or down as needed. This means that companies can add resources when they need them and remove resources when they don't need them. The AWS is one of the best examples of this.Scalability:Cloud computing infrastructures are scalable because they allow companies to scale up or down as needed. This means that companies can add resources when they need them and remove resources when they don't need them. The AWS is one of the best examples of this.In the next decade, cloud computing infrastructures will increasingly support newer technologies such as Al, big data analytics, machine learning, and loT. For example, the AWS provides companies with a wide range of services that help them to use Al, big data analytics, machine learning, and loT. This is why AWS is one of the best cloud computing infrastructures for companies that want to use these technologies.In conclusion, large-scale cloud computing infrastructures such as Amazon Web Services Microsoft Azure or Salesforce have been the greatest single enabler of business innovation and digital generativity in the past decade, and they will continue to be the best enabler of business innovation and digital generativity in the next decade.  

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QUESTION 4 Which of the following will cause an increase in ROI? An increase in variable costs An increase in average operating assets An increase in sales An increase in controllable fixed costs QUESTION 5 Costs that relate specifically to one center and are incurred for the sole benefit of that center are common fixed costs. direct fixed costs. indirect fixed costs noncontrollable fixed costs.

Answers

Answer: Non-controllable fixed costs are costs that relate specifically to one center and are incurred for the sole benefit of that center.

Answer: An increase in sales will cause an increase in ROI.

Question 4: Which of the following will cause an increase in ROI?ROI or return on investment is a performance measure that helps in evaluating the efficiency of an investment or compare the efficiency of a number of different investments.ROI is calculated by dividing the gain (return) of an investment by the cost of the investment.ROI = Gain from Investment - Cost of Investment / Cost of InvestmentNow, let's look at the given options and find which one will cause an increase in ROI:An increase in variable costs: If there is an increase in variable costs, it will decrease the ROI. An increase in variable costs will increase the cost of investment, which will ultimately decrease the ROI.An increase in average operating assets: If there is an increase in average operating assets, it will decrease the ROI. The increase in average operating assets will increase the cost of the investment, which will ultimately decrease the ROI.An increase in sales: If there is an increase in sales, it will increase the ROI. The increase in sales will increase the gain from investment, which will ultimately increase the ROI.An increase in controllable fixed costs: If there is an increase in controllable fixed costs, it will decrease the ROI. The increase in controllable fixed costs will increase the cost of investment, which will ultimately decrease the ROI. Answer: An increase in sales will cause an increase in ROI.Question 5: Costs that relate specifically to one center and are incurred for the sole benefit of that center are non-controllable fixed costs. The center has no control over these costs, and they have to incur them for the center's benefit. These costs cannot be eliminated or avoided. Common fixed costs are those costs that are incurred for the benefit of more than one center. These costs cannot be allocated to a single center. Direct fixed costs are those costs that are incurred to make a product or deliver a service. These costs can be allocated to a single center. Indirect fixed costs are those costs that are incurred to support the operations of the center. These costs cannot be allocated to a single center.

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purple ltd acquired a 22% interest in white ltd for $250000 cash on 1
july 2019. the directors of purple ltd believe this investment represents significant influence over the investee. all the identifiable assets and liabilities of white ltd were recorded at fair value. profits and dividends for the years ended 30 june 2020 were as follows:
profit after tax : $ 130,000
dividend paid : $24,000
required:
a. prepare journal entries in the records of purple ltd for each of the hear ended 30 june 2020 in relation to its investment in the associate, White ltd. (assume purple ltd doesnot prepare consolidated financial statement) ( 6 marks)
b. Calculate the carrying amount of the investment in white ltd on 30 june 2020. 4 marks.

Answers

a. Journal entries in the records of Purple Ltd for the year ended 30 June 2020 in relation to its investment in the associate, White Ltd:

To record the initial investment on 1 July 2019:

Investment in White Ltd $250,000

Cash $250,000

To record Purple Ltd's share of White Ltd's profit after tax:

Investment in White Ltd $28,600 (22% of $130,000)

Share of Associate's Profit $28,600

To record the dividend received from White Ltd:

Cash $5,280 (22% of $24,000)

Investment in White Ltd $5,280

b. The carrying amount of the investment in White Ltd on 30 June 2020 can be calculated by adding the initial investment, share of profits, and subtracting the dividends received.

Carrying Amount on 30 June 2020 = Initial Investment + Share of Profits - Dividends

Carrying Amount = $250,000 + $28,600 - $5,280

Carrying Amount = $273,320

Therefore, the carrying amount of the investment in White Ltd on 30 June 2020 is $273,320. This represents the net amount at which Purple Ltd holds its investment in White Ltd on its balance sheet as of that date.

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