At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales. Based on variable costing, of sales change by $1.00, income will change by

Answers

Answer 1

Answer:

$0.25

Explanation:

The change in operating income as a result of the change in sales by $1.00 is equivalent to the additional contribution margin, computed as follow;

Additional sales

$1

Less:

Additional Variable costs ($1 × 75%)

($0.75)

Increase in operating income

$0.25

The amount left over after subtracting variable costs is the contribution margin.

Here, the total fixed cost remains unchanged hence will not be affected due to increase in sales. The fixed costs remains at 15% of sales at the present level of operations. The fixed costs as a percentage of sales will be some value less than 15% after the $1.00 increase in sales value.

Answer 2

The amount of the change in the operating income if sales change by $1 is $0.10.

First step is to calculate the total cost

Total cost= (Total variable costs × Sales) + (Total fixed costs ×  Sales)

Total cost=(75%×$1.00) + (15%×$1.00)

Total cost=$0.75+$0.15

Total cost=$0.90

Second step is to calculate the change in operating income

Change  in operating income  = Sales - Total cost

Change  in operating income =$1.00-$0.90

Change  in operating income =$0.10

Inconclusion the amount of the change in the operating income if sales change by $1 is $0.10.

Learn more about change in operating income here:https://brainly.com/question/15869128


Related Questions

On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $420,000 and a discount rate of 10%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2021

Answers

Answer:

$413,000

Explanation:

Calculation to determine the carrying value of the note as of September 30, 2021

Carrying value=[$420,000 - ($420,000 .010*6/12)]+ [($420,000 .010*6/12)*4/6]

Carrying value=[$420,000-$21,000]+ ($21,000*4/6)

Carrying value=[$420,000-$21,000]+ $14,000

Carrying value=$399,000+ 14,000

Carrying value=$413,000

Therefore the carrying value of the note as of September 30, 2021 is $413,000

During the year, cost of goods sold was $320,000; income from operations was $304,000; income tax expense was $64,000; interest expense was $48,000; and selling, general, and administrative expenses were $176,000. Required: Calculate net sales, gross profit, income before taxes, and net income.

Answers

Answer:

total=1920,000

I Love The question

GroundTruth Ads Manager is an easy-to-use, self-serve advertising platform. Visual advertisements are integrated into text messages, applications, and mobile websites. Customers are reached based on their location. GroundTruth Ads Manager is an example of _______.

Answers

Answer:

a mobile ad

Explanation:

GroundTruth launches an ad manager which provides advertisement to its customers on its mobile phones based on the location of the customer. It is a self serving platform for advertisements and easy to operate and use.

The ad manager integrates the visual advertisements into the text messages, applications and also mobile websites and sends to the customers for advertising.

Thus the GroundTruth Ads Manager is an example of a mobile ad.

A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's personal financial statement and income are consistent with those of her wealthy clients, yet she never buys limited partnership units for her personal account. Which statement is TRUE

Answers

Answer: Her actions are inconsistent with the advice being given to her clients and this must be disclosed

Explanation:

Since the registered investment adviser often recommends real estate limited partnership investments to her wealthy clients but she never buys limited partnership units for her personal account.

This shows that her actions are inconsistent with the advice being given to her clients and this must be disclosed.

If you wish to accumulate $125,000 in 7 years, how much must you deposit today in an account that pays a quoted annual interest rate of 11% with quarterly compounding of interest

Answers

Answer:

You need to deposit $58,481.53 today.

Explanation:

a) Data and Calculations:

Future value expected = $125,000

Period of investment = 7 years

Interest rate = 11% compounded quarterly

The amount of deposit needed today to earn $125,000 in 7 years at annual interest rate of 11% is calculated as follows:

N (# of periods)  28

I/Y (Interest per year)  11

PMT (Periodic Payment)  0

FV (Future Value)  125000

Results

PV = $58,481.53

Total Interest $66,518.47

Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 37 years, and an annual coupon rate of 11.0%. Flotation costs associated with a new debt issue would equal 3.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 9.0%. The firm's marginal tax rate is 50%. What will the firm's true cost of debt be for this new bond issue

Answers

Answer: hello the options related to your question is missing attached below are the missing options

answer : 4.65% ( option 3 )

Explanation:

par value of bond = $1000

Maturity period = 37 years

Annual coupon rate = 11.0%

Floating costs = 3.0% of market value of bonds

Discount rate for bonds of firms similar = 9.0 %

Marginal tax rate = 50%

Determine the firm's true cost of debt

Nper = 37

coupon rate = 11.0%

PMT = face value * coupon rate = 1000 * 11%  = $110

present value ( PV ) = $1,176.67

step 2 ; calculate the value of YTM

YTM = 9.29%  using excel function: rate( 37, 110, -1176.67, 1000 )

step 3 : calculate True cost of debt

YTM * ( 1 - marginal tax rate )

= 9.29% * ( 1 - 0.5 )

= 4.65%

affar Tabrizi is the owner of Tabrizi Oriental Rugs located in Toronto, Canada. He shops the world over, handpicks, and orders beautiful, authentic handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi website. In terms of the marketing channel, Jaffar is acting as Multiple Choice a consumer. an agent. a wholesaler. a brokerage firm. a middleman.

Answers

Answer:

A middleman

Explanation:

A middle man in trade is a person that is willing to make negotiations between people that are not willing to meet themselves. They go the extra mile to purchase goods and make them available to customers that have need of them.

In the given scenario Tabrizi shops the world over, handpicks, and orders beautiful, authentic handmade rugs. He has them shipped to Canada, where he sells them through his brick-and-mortar stores and his www.tabrizi website.

Clients in Canada are not able to travel to far places to purchase rugs so he steps in to this role and obtains rugs for his local clients.

A university spent $2 million to install solar panels atop a parking garage. These panels will have a capacity of 700 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.

Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first.

Approximately how many hours per year will the solar panels need to operate to enable this project to break even?

8,214.28

5,867.34

2,346.94

4,693.87

If the solar panels can operate only for 5,281 hours a year at maximum, the project break even.

Continue to assume that the solar panels can operate only for 5,281 hours a year at maximum.

In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least blank

Answers

Answer:

A university spent $1.7 million to install solar panels atop a parking garage. These panels will have a capacity of 300 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 10,472.99 17,454.99 5,818.33 11,636.66 If the solar panels can operate only for 10,473 hours a year at maximum, the project break even. Continue to assume that the solar panels can operate only for 10,473 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least

An investment offers $5,800 per year for 20 years, with the first payment occurring one year from now. a. If the required return is 7 percent, what is the value of the investment today

Answers

Answer:

Present value of the investment= $61,445.28

Explanation:

Giving the following information:

Annual payment= $5,800

Number of periods= 20 years

Interest rate= 7%

First, we need to calculate the future value of the investment:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {5,800*[(1.07^20) - 1]} / 0.07

FV= $237,773.86

Now, the present value:

PV= FV / (1 + i)^n

PV= 237,773.86 / (1.07^20)

PV= $61,445.28

Suppose a stock had an initial price of $88 per share, paid a dividend of $2.10 per share during the year, and had an ending share price of $96. Compute the percentage total return.

Answers

Answer:

Percentage total return = 0.1147 or 11.47%

Explanation:

Below is the calculation for a percentage of total return:

The initial price of share = $88

Dividend amount = $2.10

Ending price of share = $96

Use the below formula to find the percentage return:

Percentage total return = [(Ending price - initial price) + Dividend amout] ÷ Initial price

Percentage total return = [(96 - 88) + 2.10] / 88

Percentage total return = 0.1147 or 11.47%

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory $ 550,000 $ 613,000 The raw materials used in manufacturing during the year totaled $1,033,000. Raw materials purchased during the year amount to

Answers

Answer:

$420,000

Explanation:

Given the following information, Beginning ending raw materials inventory $560,000 $613,000

The raw materials used in manufacturing during the year is totaled $1,033,000

We will use the formula below to calculate raw materials purchased during the year

Raw materials purchases

= Direct materials used in production - Ending inventory

= $1,033,000 - $613,000

= $420,000

Banana Electric is a public company with the following details: Risk free rate 2.0% MRP 5.0% Observed Beta 1.0 Price per share $10.00 Shares outstanding 1,000.0 Debt (market value) 200.0 Cash 1,500.0 Cost of debt 2.0% Tax rate 0.0% Question: Calculate the weighted average cost of capital.

Answers

Answer:

6.90 %

Explanation:

The weighted average cost of capital (WACC) is the cost of the sources of finance pooled together.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt

where,

Cost of equity = Return from risk free security + Beta x Market Premium

                        = 2.0% + 1.0 x 5.0%

                        = 7.0 %

After tax cost of debt = Interest x ( 1 - tax rate)

                                    = 2.0%

Weight of Equity = $10,000 / ($200.0 + $10,000) = 98 %

Weight of Debt = $200.0 / ($200.0 + $10,000) = 1.96 %

therefore,

WACC =  7.0 % x 0.98 + 2.0% x 0.02

           = 6.90 %

thus,

The weighted average cost of capital is 6.90 %.

The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented below. Actual Results:Budget Data: 10,000 Trucks Produced and Sold12,000 Trucks Planned Unit selling price$15Unit selling price$14 Variable costs:Unit variable cost: Direct materials$ 52,800 Direct materials$ 5 Direct labor51,000 Direct labor4 Variable overhead 23,000 Variable overhead 2 Total variable costs$126,800Total unit variable costs$11 Fixed overhead$9,000Fixed overhead$9,600 Required: Prepare a variance analysis to compare actual results and the master budget.

Answers

1000,000 for the ushejdjkejdhjejejeje

Lewis and Associates has been in the termite inspection and treatment business for five years. The following is a list of accounts for Lewis on June 30, 2017. It reflects the recurring transactions for the month of June but does not reflect any month-end adjustments:
Cash ………………………………………………. $6,200
Accounts Receivable ………………………………10,400
Prepaid Rent ……………………………………….. 4,400
Chemical Inventory ………………………………....9,400
Equipment …………………………………………..18,200
Accumulated Depreciation ………………………….1,050
Accounts Payable ………………………………….. 1,180
Capital Stock ………………………………………....5,000
Retained Earnings ……………………………….. ...25,370
Treatment Revenue ………………………………....40,600
Wages and Salary Expense ………………………. 22,500
Utilities Expense ………………………………….....1,240
Advertising Expense ……………………………….. 860
The following additional information is available:
a. Lewis rents a warehouse with office space and prepays the annual rent of $4,800 on May 1 of each year.
b. The asset account Equipment represents the cost of treatment equipment, which has an estimated useful life of ten years and an estimated salvage value of $200.
c. Chemical inventory on hand equals $1,300.
d. Wages and salaries owed but unpaid to employees at the end of the month amount to $1,080.
e. Lewis accrues income taxes using an estimated tax rate equal to 30% of the income for the month.
Required:
1. For each of the items of additional information, (a) through (e), identify and analyze the necessary adjustment on June 30, 2017.
2. On the basis of the information you have, does Lewis appear to be a profitable business?

Answers

Answer:

Lewis and Associates

1. Identification and Analysis of the items of additional information:

a. Rent Expense $400 Prepaid Rent $400

b. Depreciation Expense $150 Accumulated Depreciation $150

c.Cost of Chemical Used $8,100  Chemical Inventory $8,100

d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.

e. Income Tax Expense $1,905 Income Tax Payable $1,905

2. On the basis of the information, Lewis and Associates appears to be a profitable business, making a margin of 11% in after-tax income.

Explanation:

a) Additional Data and Analysis:

a. Rent Expense $400 Prepaid Rent $400

b. Depreciation Expense $150 Accumulated Depreciation $150

c.Cost of Chemical Used $8,100  Chemical Inventory $8,100

d. Wages and Salary Expense $1,080 Wages and Salary Payable $1,080.

e. Income Tax Expense $1,905 Income Tax Payable $1,905

30% of the income for the month.

Income Statement for the Month Ended June 30

Treatment Revenue               $40,600

Cost of Treatment Chemical      8,100

Gross profit                            $32,500

Expenses:

Wages and Salary      $23,500

Utilities                             1,240

Advertising                        860

Depreciation                      150

Rent                                  400

Total expenses                        $26,150

Income before taxes                $6,350

Income taxes                               1,905

Net income                               $4,445

(CRM) system uses customer contact information for targeted _____. a. management b. inventory control c. marketing d. budgeting

Answers

Answer:

c. marketing

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving customer service, sales support, marketing communications, and technical assistance, so as to bring satisfaction to the customers and increase sales for the company.

Typically, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.

Hence, CRM system uses customer contact information for targeted marketing such as sending weekly letters, promotional messages, survey, etc.

A buyer who accepts goods but notifies the seller the goods are non-conforming a. cannot recover any damages. b. can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages. c. cannot recover incidental damages. d. cannot recover consequential damages.

Answers

Answer:

B)can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.

Explanation:

Nonconfirming goods can be regarded as goods which did not meet specification that is been provided in a contract, in this case A buyer has the entitlement order for rejection of tender of the goods. the acceptance of the nonconfirming goods can also be revoked by the buyer. In a case, whereby a buyer accepts goods but notifies the seller the goods are non-conforming, he/she can recover the difference between the goods as promised and as delivered, plus incidental and consequential damages.

Informal peacemaking and mediation are characterized on the continuum as having __________ personal control by disputants, whereas arbitration and litigation have ________ personal control by the disputants.

Answers

Answer:

high; low.

Explanation:

A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.

CALM is a 4-step process for addressing and defusing conflict.

These four step process for conflict resolution or defusing conflicts includes;

I. Clarify (C): this involves finding out more information about what caused the conflict.

II. Ask (A): you should ask the opposing party about the issues while being polite.

III. Listen (L): listen attentively to get more information.

IV. Move forward (M): do not dwell on the past issue after they have been resolved.

Mediation can be defined as an alternative dispute resolution (ADR) approach which involves an impartial and neutral third party who is saddled with the responsibility of proposing a solution to conflict between two or more parties.

Basically, a mediator is a professional trained in conflict or dispute resolution through the use of effective negotiation techniques and communication strategies. Thus, a neutral third party such as a mediator or negotiator from outside an organization or group, who will hear a conflict case via a nonbinding process should be availed the opportunity to make peace between two or more disagreeing parties.

Generally, the disputants (disagreeing parties) generally have a low personal control over an arbitration and litigation while during an informal peacemaking and mediation process, there is a high level of personal control by disputants on the continuum.

Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future services. Suppose that before the adjusting entry, the balance in this account was $2,725. After the adjusting entry, the ending balance will be __________.

Answers

Answer:

the ending balance of the unearned revenue is $3,225

Explanation:

The computation of the ending balance is shown below:

= Amount received from the customer for performing the future service + balance in the account

= $500 + $2,725

= $3,225

Therefore the ending balance of the unearned revenue is $3,225

The above formula should be applied

During 2021, Blossom Co. incurred the following costs: Testing in search for process alternatives $390000 Costs of marketing research for new product 260000 Modification of the formulation of a process 570000 Research and development services performed by Crane Corp. for Blossom 485000 In Blossom's 2021 income statement, research and development expense should be

Answers

Answer:

See below

Explanation:

Given the above information, our concern when calculating amount of research and development costs charged to Blossom corp. for 2021 should be the period cost. This means costs that are incurred in the period under review. I.e 2021.

= Testing in search for process alternative + Cost of marketing research + Modification of formulation of a process + Consulting fees

= $390,000 + $260,000 + $570,000 + $485,000

= $1,705,000

Therefore, Blossom's 2021 income statement , research and development expense should be $1,705,000.

It takes Suzi 6 hours to sew a shirt and 4 hours to bake a cake. Anna can sew a shirt in 3 hours and bake a cake in 1 hour. If Anna and Suzi decide to specialize and trade, who should make shirts?

Answers

Answer:

Suzi

Explanation:

Comparative advantage is the relative edge that a person has over another in the production of a product. They use less resources to produce the product than others.

When two parties corporate in production the good to produce can be shared base on who has comparative advantage or the person that loses less in a production process.

In the give instance

Suzi can produce a shirt in 6 hours while Anna produces it in 3 hours. Anna is twice as fast as Suzi.

Suzi can bake a cake in 4 hours while Anna can do so in 1 hour. So Anna is 4 times faster than Suzi in baking cakes.

It will be best for Suzi to make shirts since she is only twice as slow as Anna.

Anna will be better off baking cakes as she is four times as fast here.

Under accounting principles generally accepted in the United States, in order for an item to qualify for recognition in the financial statements of a company, the item must I. Be measurable in monetary terms II. Reflect the consensus expectations of investors III. Meet the definition of an element of the financial statements

Answers

Answer:

I Be measurable in monetary term

III Meet the definition of an element of the financial statements

Explanation:

Financial Statements can be regarded as reports which provide the detail of the financial information entry, these includes assets, incomes, liabilities,as well as equities, and sone information which are during the period of time.

Therefore, for an item to be able to qualify for recognition in a particular financial statements,

the definition of an element of financial statements must be met hich are;

1) measurable

2) be relevant to the particular users

3) information must be verifiable

It should be noted that Under accounting principles generally accepted in the United States, in order for an item to qualify for recognition in the financial statements of a company, the item must be;I )Be measurable in monetary term

III)Meet the definition of an element of the financial statements

Sunland Company sells office equipment on July 31, 2022, for $22,080 cash. The office equipment originally cost $72,560 and as of January 1, 2022, had accumulated depreciation of $38,910. Depreciation for the first 7 months of 2022 is $4,980.

Required:
Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.

Answers

Answer:

Accumulated depreciation on Jan 1 , 2022 = $38,910

Depreciation for first 7 months of 2022 = $4,980

Accumulated depreciation on July 31 , 2022 = Accumulated depreciation on Jan 1 , 2022 + Depreciation for first 7 months of 2022 = 38,910 + 4,980 = $43,890

Sale price of equipment = $22,080

Book value of equipment on July 31, 2022 = Cost price - Accumulated depreciation = 72,560 - 43,890 = $28,670

Loss on disposal of equipment = Book value of equipment on July 31, 2022 - Sale price of equipment = 28,670 - 22,080 = $6,590

No. Account Titles and Explanation                Debit     Credit

(a)    Depreciation expense                               $4,980

            Accumulated depreciation- equipment             $4,980

(b)    Cash                                                            $22,080  

Accumulated depreciation - equipment           $43,890  

Loss on disposal of equipment                         $6,590

                   Equipment                                                     $72,560

Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors and is considering whether it should record $300,000 of revenue upon shipment of a new line of cosmetics. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold. How much revenue should Finerly recognize upon delivery to its distributors?

Answers

Answer: $0

Explanation:

When there is an expectation of reversal of the goods back to the company due to factors arising from a delay in the delivery of the goods or other factors that could not be controlled, the revenue recognized should be $0.

In this scenario, Finerly is uncertain about the ability of the goods to be sold by the distributors and is committed to accepting the cosmetics should they not sell.

As they have little experience which means that they will be unable to control much unforeseen factors, there is an expectation of reversal so revenue should be recognized at $0 on delivery. Revenue will only be recognized after sales.

Can you order with a Nike gift card online?

Answers

Answer:

ok call 911 hahaha thanks for the points

Bonita Industries produces flash drives for computers, which it sells for $30 each. Each flash drive costs $6 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $6000. How much does Bonita’s operating income increase for each $2400 increase in revenue per month?

Answers

Answer:

See below

Explanation:

Sales ($30 × 1,000 drives sold)

$30,000

Less:

Variable cost ($6 × 1,000 drives sold)

($6,000)

Contribution margin

$24,000

Less:

Fixed costs

($6,000)

Operating profit

$18,000

Therefore, Bonita's operating income increases by $18,000 per month

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $25.25 per share; its last dividend was $1.50; and it will pay a $1.62 dividend at the end of the current year.
1. Using the DCF approach, what is its cost of common equity?
2. If the firm's beta is 0.80, the risk-free rate is 3%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach?
3. If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs?
4. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?

Answers

Answer:

Find my detailed explanations and answers below

Explanation:

1.

Based on the dividend discount model, the share price is the present value of the expected dividend as shown by the formula below:

share price=expected dividend/(cost of equity-growth rate)

share price=$25.25

expected dividend=$1.62

cost of equity=unknown(let us assume it is K)

growth rate=8%

$25.25=$1.62/K-8%

$25.25*(K-8%)=$1.62

K-8%=($1.62/$25.25)

K=($1.62/$25.25)+8%

K=14.42%

2.

Using the Capital Asset Pricing Model, the formula for cost of equity is as shown thus:

cost of equity=risk-free rate+beta*(market return-risk-free rate)

risk-free rate=3%

beta=0.80

,market return=14%

cost of equity=3%+0.80*(14%-3%)

cost of equity=11.80%

3.

cost of equity=cost of debt+risk premium

cost of debt=12%

risk premium=market return-risk-free rate=14%-3%=11%

cost of equity=12%+11%=23%

If all of the figures are of equal confidence, our cost of equity should be the average of the three

cost of equity=(14.42%+11.80%+23%)/3=16.41%

Identify supply chain of your school?​

Answers

Answer:Within the supply chain discipline itself, students need to learn the foundational concepts of management science and cover topics such as sourcing, selling, logistics, inventory control, quality management, and product management.

Explanation:

Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Answers

Answer:

If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Mary would specialize in making cakes while Tim would specialize in making pies.

Explanation:

a) Data and Calculations:

Mary's opportunity cost of making a cake = 2 pies

She can make additional 5 (10/2) cakes instead of making pies

This will increase her cakes to 25 a day (20 + 5)

Tim's opportunity cost of making a cake = 4 pies

She can make additional 40 pies (10 * 4) instead of making cakes

This will increase her pies to 60 pies a day (20 + 40)

When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.

A middleman is Multiple Choice a person or firm whose sole responsibility is bringing a buyer to the last link in the distribution chain. a person or firm whose sole responsibility is to find distributors for a manufacturer's products. any intermediary between a manufacturer and end-user markets. a person or firm that takes possession of a product and in some way alters it before passing it on to ultimate consumers. an intermediary that sells to ultimate consumers.

Answers

Answer:

would you still like me to help you with this question

An example of a type II error in quality control would be:counting a student s True/False response as incorrect when it is actually correct.throwing away a perfectly good fruit.eating food that you were unaware was spoiled.using clean bed sheet for every new guest in a hotel.

Answers

Answer:

the answer is a i just took the test got 100

Explanation:

The answer is True I think
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