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bixtya
1 month ago
14

In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex

pected to cost approximately $22, and Rutton would probably spend another $15 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 ˚ on game day. Damon is thinking about skipping the game and taking his wife to the movies and dinner, at a cost of $50. The amount of sunk cost that should influence Damon’s decision to spend some time with his wife is
Business
1 answer:
harina [3.8K]1 month ago
8 0
The sunk cost amounts to $70. Sunk Cost describes an expense that has already been incurred and is non-recoverable. Typically, these costs are ignored in decision-making as they cannot be avoided regardless of the decisions made. In this scenario, Damon Rutton spent $70 on a ticket, which is the only pre-paid expense; any additional costs for parking or refreshments would only be incurred if he chooses to attend the game.
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Suppose that the total benefit and total cost from a continuous activity are, respectively, given by the following equations:
Mariulka [3825]

Answer:

A) The equation for net benefits is given by 20 + 24Q - 4Q²

B) 40; 40

C) MNB(Q) = 24 - 8Q

D) 16; -16

E) Q = 3

F) 0

Explanation:

a) This outlines the formula for net benefits.

Essentially, net benefits arise when total benefits surpass total costs from Q units of the control variable.

From this definition, we derive the equation

N(Q)= B(Q) - C(Q)

Where

N(Q)= Net benefits from Q units of control variable

B(Q)= Total benefits from Q control variable units

C(Q)= Total cost from Q units of the control variable

We are informed that B(Q)= 100 + 36Q - 4Q^{2} and C(Q) = 80 +12Q

This implies:

N(Q)= 100 + 36Q - 4Q² - (80 + 12Q)

= 100 + 36Q - 4Q² - 80 - 12Q

= 20 + 24Q - 4Q²

b) To find the net benefits when Q = 1 and Q=5

Step 1) For Q=1, we apply the 20 + 24Q - 4Q² formula

= 20 + 24(1) - 4(1²)

= 20 + 24 - 4

= 40

Step 2) For Q=5, we use the 20 + 24Q - 4Q² formula

= 20 + 24(5) - 4(5²)

= 20 + 120 - 100

= 40

c) To determine the marginal net benefits equation

Marginal net benefits reflect the change in net benefits caused by a change of one unit in the control variable

The formula is formulated as follows:

MNB(Q) = MB (Q) - MC(Q)

Where

MNB(Q)= The marginal net benefits at the Q level of the control variable

MB(Q)= marginal benefits

MC(Q)=Marginal Costs

We are already informed: MB(Q) = 36 – 8Q and MC(Q) = 12.

This indicates

MNB(Q)=MB (Q)-MC(Q)

= 36-8Q-12

= 36-12-8Q

= 24-8Q

Thus, MNB(Q) = 24-8Q

d) To find marginal net benefits

Step 1) When Q=1 we apply the marginal net benefit formula MNB(Q)= 24-8Q

=MNB(Q)= 24-8(1)

= 16

Step 2) For Q=5 we utilize the marginal net benefit MNB(Q)= 24-8Q

=MNB(Q)= 24-8(5)

=24-40

=-16

e) To calculate maximum net benefits, which occur when marginal costs equal marginal benefits (indicating the control variable level).

MB(Q)=MC(C)

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

We know that MB(Q) =36-8Q and MC(Q)=12

Therefore, setting maximum benefit

= MB(Q)= MC(Q)

=36-8Q=12

8Q=36-12

8Q= 24

So, Q= 3.

This indicates that at Q equal to 3, net benefits achieve maximum levels

f) To compute marginal net benefits - the difference between marginal costs and benefits

MNB(Q)=MB(Q)-MC(Q)

MNB(Q)= Marginal net benefits

MB(Q)= Marginal benefits

MC(Q)= Marginal Costs

We are aware that MB(Q) =36-8Q and MC(Q)=12

MNB(Q)= 36-8Q-12

=36-12-8Q

=24-8Q

As established, maximum levels of net benefits occur at Q = 3, substituting Q with 3 in the equation

MNB(Q)= =24-8(3)

= 24-24

=0

This indicates that at Q = 3, net costs balance out with net benefits, maximizing net benefits.

5 0
1 month ago
The management team has asked you to reschedule the project so it finishes two weeks earlier without spending more money. They h
Scilla [3833]

Answer:

Crash the schedule.

Explanation:

Using fast-tracking enables earlier completion of the task but incurs higher costs. Assigning seasoned individuals to the project will also increase management expenses. Reducing the project scope leads to a quicker finish by decreasing requirements. Hence, options A, B, and D are not viable solutions.

Opting to crash the schedule (option C) is the correct choice since it efficiently utilizes resources to accelerate task completion without additional expenditure.

5 0
2 months ago
1. Do you see Sony as an innovator in its industries of electronics, semiconductors, computers, video games, and telecommunicati
stepan [3596]

Response: Question 1: I perceive Sony as a trailblazer in the electronics, semiconductor, computer, video gaming, and telecommunications sectors, owing to their numerous innovations across these fields.

Question 2: Sony captivates my interest by making remarkable advances in technology and producing phenomenal and practical tech products.

I hope this is helpful!:)

Clarification:

5 0
2 months ago
Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the
Scilla [3833]

Respuesta:

1) Variación de Tasa de Costo Indirecto Variable = ( SR - AR )* AH

= ( $21 - $20) 3,500

= $3,500 Favorable

2) Tasa de Labor = ( SR - AR )* AH

= ( $24 - $24.9) 2,290

= $2,061 U

Explicación:

TOTAL = Costo estándar - Costo incurrido

Costo Estándar = $70,000 + $4,550

= $74,550

Tasa Estándar = $74,550 / 3,550

= $21

costo incurrido = AR * horas de máquina

costo por hora de máquina = $70,000/3,500

= $20

2) Tasa de Labor = ( SR - AR )* AH

= ( $24 - $24.9) 2,290

= $2,061 U

AR = $57,021/2,290 = $24.9

AR = Tasa Real

SR = Tasa Estándar

AH = Horas Reales

8 0
2 months ago
Congratulations! You have been hired to work in advertising for a large firm whose products are used by millions, including mill
Free_Kalibri [3773]

Answer:

Should you allocate your whole advertising budget to social media, you will connect with ____60,000_______ millennials and____20,000_________ older adults.

If your entire budget is directed towards print newspaper ads, you will engage ___20,000______ millennials and___40,000_______ older adults.

Explanation:

Social Media Cost per ad = $88

Advert budget = $88,000

Number of social media ads produced based on the budget = 1,000 ($88,000/$88).

Each social media ad reaches 60 millennials and 20 older adults

So, the total outreach will amount to 60,000 (60* 1,000) millennials and 20,000 (20 * 1,000) older adults respectively.

Print newspaper advertising cost per ad = $44

Advert budget = $88,000

Number of print ads base on budget = 2,000 ($88,000/$44)

Each print ad caters to 10 millennials and 20 older adults

Thus, the total reach will account for 20,000 (10 * 2,000) millennials and 40,000 (20 * 2,000) older adults accordingly.

7 0
1 month ago
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