Response:
a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.
b. The primary factor behind the change in corn production acreage is:
A. The increased price indicates to suppliers that corn is becoming more valuable.
Clarification:
As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.
The optimal approach for Karan to take is:
D.
to inform the employees that their emails will be subject to monitoring
Explanation:
Oversight of employees' social media interactions straddles ethical considerations, thus it’s important to establish a best practice that aligns with the organization’s culture.
Workers should be made aware of the monitoring so they comprehend that it will occur.
Subsequently, checks can be conducted randomly or based on perceived trustworthiness.
Answer:
DeShawn should not continue offering the engine detailing service
Explanation:
Given data
Cost = $40
Charge = $75
Total price = $90
Additional charges amount to $20
To determine
Whether DeShawn should proceed with the offer
Solution
Here, we know DeShawn's marginal benefit is Marginal benefit = total price - charge
Marginal benefit = 90 - 75
Marginal benefit = $15
Given that the additional charge is $20
Thus,
the marginal cost exceeds the marginal revenue
Hence, DeShawn should not continue the engine detailing service
Answer:
The correct option is A.
$14.38 per direct labor hour
Explanation:
If the planned direct labor time for December is 8,000 hours, the total budgeted factory overhead per direct labor hour is calculated as follows:
Total budgeted factory overhead for December= Variable Factory Overhead rate per labor hour * budgeted labor hours for December + Fixed Factory Overhead monthly cost
Total budgeted factory overhead for December = 5*8000 + 75000
Total budgeted factory overhead for December = $115,000
Total budgeted factory overhead per labor hour = Total budgeted factory overhead for December/budgeted direct labor hours for December
Total budgeted factory overhead per direct labor hour = 115000/8000
Total budgeted factory overhead per direct labor hour = 14.38
