<span>If the hourly wage rises by ten percent next week while keeping all other expenses unchanged, the total payroll variance will increase by ten percent as well. This conclusion is based on the findings from the Smith BBQ Restaurant report.</span>
Answer:
The answer is $59.50.
Explanation:
The calculations based on the scenario are as follows:
Profit on futures price = After futures price - before futures price
$63.50 - $59
= $4.50
Thus, the effective price that the company pays can be calculated using this formula:
Effective price paid = Spot price in July - Gain on futures price
= $64 - $4.50
= $59.50
To calculate the percentage return, use the formula (total profit / total investment) * 100, which gives us
( 100 / 1000 ) * 100 = 10%
Solution and Explanation:
1. MC = Cost of raw materials + Labor cost
MC = 5 plus (10 divide by 2)
MC = $10
2. TFC = $300
Q = 300, AFC = TFC/Q = 300 divide by 300 = $1
3. Nicholas's optimum output is likely to be greater
Rationale: P = MR = $15, MC = $10
With MR exceeding MC, increasing output is advisable until MR equals MC to maximize profits.
4. His profit-maximizing output would likely increase
Reason: P = MR = $15, MC = $4 + $5 = $9
Since MR > MC, Nicholas should amplify his output until they are equated at the profit-maximizing point.
Answer:
$109.80 per unit
Explanation:
To solve the problem, we'll follow this approach
First
Variable cost per unit = $728,190 ÷ 8,700 units
Variable cost per unit = $83.70 each
Next
Fixed cost per unit at 8,900 units = $232,290 ÷ 8,900 units
Fixed cost per unit = $26.10 each
Finally
Total cost = Variable cost + Fixed cost
So we have
Total cost = $83.70 per unit + $26.10 per unit
Total cost = $109.80 per unit
