A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts have a price of $32 and variable costs of $17. Which of the following is a true statement for this clothing manufacturer in the short term? 1. They would prefer to make shorts instead of shirts. 2. They would prefer to make skirts instead of shorts. 3. They would not have a preference for either product. 4. If both products used the same machine for different lengths of time, it would make no difference.
Answers
Answer:
1)They would prefer to make shorts as contribution margin per unit is higher for shorts
Explanation:
Step 1. Given information.
- Sales price shirts is $24
- Variable costs shirts is $10
- Sales price shorts $32
- Variable costs shorts $17
Step 2. Formulas needed to solve the exercise
Contribution margin = sales price - variable cost
Step 3. Calculation.
Contribution margin shirts = 24 - 10 = 14
Contribution margin shorts = 32 - 17 = 15
Step 4. Solution.
Contribution margin shorts > Contribution margin shirts
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Briana was employed as a flight attendant by Tropical Coast Airlines. She was the only black female flight attendant on the airplane she was assigned to. At her job, Briana was frequently subjected to racial slurs, misbehavior, and threats from her co-workers. One co-worker even told their supervisor that the airline’s customers would not want to take orders from a black girl in the case of an in-flight emergency. Unable to tolerate the hostile environment, Briana quit her job. Which of the following holds true in this scenario? A) Briana has a cause of action for racial harassment under 42 U.S.C. section 1983. B) Briana does not have a cause of action for racial harassment, as she resigned at her own will. C) Briana has a cause of action for racial harassment under Title VII of the Civil Rights Act of 1964, as there is evidence that she was harassed. D) Briana does not have a cause of action for racial harassment, as the actions of her co-workers were not pervasive or severe.
Answers
Answer:Mary wins because Melissa failed to object to the merchant's confirmation memorandum.
Explanation:
A contract is first establish based on offer and acceptance between two parties. The telephone conversation of Mellisa to Mary constitute a valid offer and the email communication of Mary constitute a valid acceptance.
Furthermore the time interval between the email communication and delivery of the goods are enough period for Mellisa to counter the acceptance memorandum of Mary which she failed to carry out. This is the reason Mary wins.
b. $50,000
c. $75,000
d. $75,000
Answers
Answer:
Cost of hedging = $24,000
Explanation:
cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000
Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.
Answers
Answer:
The weighted-average unit contribution margin is $33.49 per unit
Explanation:
We know that,
Weighted average Contribution margin per unit = (Selling price per unit - Variable expense per unit) × sales mix
For A12 = ($55 - $40) × 55% = $8.25
For B22 = ($107- $79) × 29% = $8.12
For C124 = ($414 - $307) × 16% = $17.12
So, the total would be equal to
= $8.25 + $8.12 + $17.12
= $33.49 per unit
Answers
Answer:
Each firm sets it price equal to its average total cost.
Explanation:
In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :
1) manufacturers of identical products. . .
Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .
2) the firm has a small market share that will not affect prices. . .
No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices
3)Market where there are many buyers and sellers. . .
The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.
4)There is no obstacle to entering and leaving the market. . .
That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.
5)Perfect information. . .
Every market participant knows the prices, quality and production methods.
6) Zero transaction costs...
Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .
7) Maximizing profits. . .
In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.
As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.
Answers
Answer:
Amount dollars
Explanation:
Given
principal amount per month
Total time period years
months
Monthly rate of interest
As we know that
Where A is the amount
P is the principal amount
r is the rate of interest
n is the number of times interest applied over the total time period
t is the total time period
Substituting the given values in above equation, we get -
Final answer:
The payments of $190 per month for 4 years that your parents are giving you at the start of college, assuming an interest rate of .45 percent per month, are worth $7484.86.
Explanation:
The subject of this question is about calculating the present value of an annuity. The formula to calculate the present value of an annuity is PV = PMT * [(1 - (1 + r)^-n) / r], where PV is the present value, PMT is the monthly payment, r is the monthly interest rate, and n is the number of periods. Here PMT = $190, r = .45/100 = .0045, and n = 4 * 12 = 48 months.
Substituting the values into the formula, we get PV = 190 * [(1 - (1 + .0045)^-48)/.0045]. Then, performing the calculations, we get the present value PV = $7,484.86. Therefore, the payments your parents are providing for the 4 years of college are worth $7484.86 when you first start college assuming an interest rate of .45 percent per month.
Learn more about Present Value here:
#SPJ3
Year Mileage
1 3000
2 4000
3 3400
4 3800
5 3700
a) Forecast the mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecast in part (a), (Hint: You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5.
Answers
Answer:
Explanation:
A) using 2-year moving average :
Year 6 : (3800 + 3700) = 7500 / 2 = 3750
2) Mean absolute deviation based on the forecast above :
(3000 + 4000) = 7000/2 = 3500
(4000 + 3400) = 7400/2 = 3700
(3400 + 3800) = 7200/2 = 3600
3000
4000
3400 __3500__100
3800__3700__100
3700__3600__100
Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100
C) weight of 0.4 and 0.6
(0.4*3000 + 0.6*4000) = 3600
(0.4*4000 + 0.6*3400) = 3640
(0.4*3400 + 0.6*3800) = 3640
3000
4000
3400 __3600__200
3800__3640__160
3700__3640__60
(200 + 160 + 60) = 420 / 3 = 140