The correct answer is A.88.2. Productivity is projected to increase by 5% each year. Last year's productivity was 84, and with a growth rate of 5%, this year's productivity becomes 84 multiplied by (1+0.05), which calculates to 88.2.
Answer: Selling Price = $9803.92
Explanation:
Details:
A Treasury bill has a return of 2% every 6 months.
Time duration = 6 months
Return rate = 2% per 6 months
Selling Price of the Treasury bill = 
Selling Price = 
The expected selling price for a 6-month Treasury bill is $9803.92.
Answer:
We need to evaluate the possible gains from selecting one order over the other:
Current costs for JTM:
- $12 variable per unit
- $4 fixed per unit
If JTM proceeds with Firm A's order, its fixed costs will remain unchanged and it stands to gain an additional profit of: ($17 - $12) x 10,000 = $50,000.
However, if JTM opts for Firm B's order with its existing cost framework, it lacks the capacity to fulfill it unless variable or fixed costs rise—though we can’t ascertain by how much. Therefore, the contribution margin would likely be less than the $5 obtainable from Firm A's order.
Alternatively, JTM could accept Firm B's order while foregoing the sale of 2,000 units through standard sales channels. This choice would enhance profits but would also incur a loss of regular profits:
($5 x 14,000 units) - ($6 x 2,000 units for forgone regular profits) = $70,000 - $12,000 = $58,000. If JTM manages to cancel the sale of those 2,000 units, Firm B's proposition would increase profits by $58,000, surpassing Firm A's by $8,000, but this hinges on the feasibility of canceling the routine sales.
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.
The correct selection is option (b).
Annual benefits and costs for each project are presented.
Calculating the B-C ratio for project A, we find:
Annual benefits = $1,800,000;
Annual costs = $2,000,000;
B-C ratio = Annual benefits / Annual costs = $1,800,000 / $2,000,000 = 0.90.
Project A's B-C ratio is 0.90.
In a similar manner, for project B:
Annual benefits = $5,600,000;
Annual costs = $4,200,000;
B-C ratio = $5,600,000 / $4,200,000 = 1.33.
The B-C ratio for Project B is 1.33.
Following the same calculations for projects C, D, and E yields respective B-C ratios of 1.24, 0.93, and 1.22.
Considering that the agency will fund projects with a B-C ratio of at least 1, projects A and D will not be funded. Among the remaining, Project B offers the highest B-C ratio, making it the selected project.
