CHERCRO Inc. is a startup. It is estimated that the company will not be paying any dividends for the coming 4 years. If the comp

Answer:

Total cost = $25,200

Explanation:

Based on the following data:

Unit variable cost = $12

Produced units - total cost:

June: 2,200 - $32,400

July: 600 - $13,200

August = 1,600 units

Initially, we must identify the fixed costs:

Fixed costs = total cost - total variable cost

Next, we can compute the total cost for 1,600 units

Answer:

The sales amount is $2,500,000

Explanation:

To achieve a net income of $450,000 this year, the company needs to total its net income with variable and fixed costs.

To clarify, we apply the net income formula:

net income=sales-variable costs-fixed costs

By reworking the formula, sales can be calculated as:

sales=net income+variable costs+fixed costs

variable costs equal to 70% of sales,, rendering sales to be 0.7 times sales

sales=$450,000+$300,000+0.7 sales

This leads to sales - 0.7 sales = $750,000

Thus, 0.3 sales equals $750,000

As a result, sales equals $750,000/0.3 which is $2,500,000

Answer:

export products with a greater labor-to-land ratio than those imported from Honduras

Explanation:

According to the factor proportions theory (also known as Heckscher-Ohlin model), nations tend to export goods that utilize their plentiful production factors. For instance, nations such as Japan, which have a high availability of labor and capital but limited land, typically manufacture and export industrial items that are labor- and capital-intensive. In contrast, countries like Argentina with ample labor and land resources tend to export agricultural goods.

Specifically, when comparing El Salvador to Honduras, El Salvador possesses a surplus of labor, meaning its exported products to Honduras will exhibit a greater labor-to-land ratio, attributed to the labor abundance.

Answer:

Option (E) is the correct answer.

Explanation:

Labor productivity will increase by 50%.

Currently, productivity is at 5000 pairs per worker; with the productivity boost, it will rise to:

= 5,000 × (1 + 50%)

= 7,500.

Total annual pay stands at $40,000.

Cost per unit with higher productivity:

= Total pay ÷ New productivity level

= 40,000 ÷ 7,500

=

Thus, labor costs per unit produced will decrease from $8.00 to $5.33 for a facility in North America.