Given the following marginal cost values for a given asset, determine the equivalent uniform annual cost for the first three years and identify the minimum cost life. Use an interest rate of 10%. Year Marginal
Q: At the Cournot equilibrium, fırms have no incentive to change their output levels because (select…
A: Cournot equilibrium is achieved when the firm decides its quantity on the basis of the strategy…
Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: Home's demand curve for wheat is D = 100- 20P. Its supply curve is S= 20 + 20P. 2. Now add…
A: A government's policy of not discriminating against imports or interfering with exports by imposing…
Q: (? Market for Clothing in Cambodia Domestic Demand Consumer Surplus Domestic Supply New World Price…
A: consumer surplus is a proportion of consumer government assistance and is characterized as the…
Q: What is the future value of $3,000 saved for 6 years at 4% interest
A: FV = PV ( 1 + r )^t FV = Future value PV = present value i = interest rate compounded annually t =…
Q: An award is being established, and t wil pay $11,200 every three years, with the fst instalment…
A: C = 11,200 r = 3%
Q: Discuss in detail the limitations of the IS-LM model. Why is it unrealistic for todays economies
A: The IS-LM Model stands as, IS - Investment-savings, LM - liquidity-money supply. This IS-LM Model…
Q: In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of…
A: Answer is given below
Q: You buy a watch that costs $45.50. The tax on the watch is 7.5%. What is the final cost?
A: Given: The cost of the watch is = $45.50 The tax on the watch is = 7.5% To Find: The final cost:
Q: 4. The marginal social cost (MSC) of an electricity generating plant that uses coal is estimated by…
A: Answer in step 2
Q: Explain the Friedmanian model of NAIRU
A: NAIRU stands for Non Accelerating Inflation rate of Unemployment.
Q: Baed on best buy company assessment of the present value of your organization: what it would be…
A: Strategy planning: Strategic planning is a organization process to defining its strategy on various…
Q: discussing factors of production. How would you determine the demand for a factor of production?…
A: Factors of production:- a) Capital. b) Land. c) Labor. a) The demand for a production factors is…
Q: Your company is going to invest in a new machine that expects to produce $50,0oo in new profits each…
A: Given information: Profit for 3 years = $50000 each year First-year investment for machine = $50000…
Q: A firm has a production function QL,K=100L0.4K0.6 with a cost function CL,K=5L+30K. What is the…
A: Q(L,K)=100L0.4K0.6 C(L,K)=5L+30K w=5 r=30 Q=1000 MPL=dQ/dL=0.4(100)L-0.6K0.6 MPL=40L-0.6K0.6…
Q: In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of…
A: Answer is given below
Q: 2. Given the following information: U=XY; Px= 5; Py= 10; I = 200, a. mathematically_show the (i)…
A: * SOLUTION :- (6e) Given that , U = XY Px = 5 Py =10 I =200
Q: Which of the following statements is true? a. In a finitely repeated prisoner’s dilemma, players…
A: Nash Equilibrium: A Nash equilibrium refers to one in which no one can get better without making…
Q: Explanation it correctly and in detail. Q)As long as there is free entry into a market:- A.…
A: If there is free entry and exit in the market, such markets generally have high competition due to…
Q: ompare two methods of monopoly regulation.
A: To safeguard consumers' interests, the government may desire to regulate monopolies.Monopolies, for…
Q: Consider two internet service providers: ISP West and ISP East, offering internet access to a small…
A: * SOLUTION :- (10) Given that , The price elasticity of 1SP west = -1.25 The price elasticity…
Q: Suppose the demand for oil is P=122Q 0.20 There are two oil producers who do not cooperate.…
A: Profit = Total Revenues - (Explicit Costs + Implicit Costs)
Q: 2. Consider the utility function of individual A given by Ua (X,Y) = X".5ya.s in answering the %3D…
A: utility means the satisfaction consumer derives from the consumption . it is measured in terms of…
Q: The price-supply and price-demand equations of a certain product are given by p = S(x) = 15 + 0.1x…
A:
Q: year. The transaction was denominated in Euros. The exchange rate at the time Was US Euro. However,…
A: Foreign Currency exchange can be presented in either direct quote or indirect quote. A direct…
Q: Explain how the relationship between elasticity of demand for the product and labor would affect…
A: The elasticity of labour demand measures how responsive labour demand is to changes in wage rates.…
Q: [Basic static analysis of trade] Construct a simple model of the (wholesale) market for wheat…
A: The process of purchasing and selling items in big numbers and so at lower rates, mainly to…
Q: Q.2 When transactions costs are sufficiently high, it may be more efficient to supply the good…
A: The term "publicly supplied goods" refers to goods that have a high marginal cost of supplying…
Q: An award is being established, and t will pay $11,200 every three years, with the fst instalment…
A: C = 11,200, r = 3%
Q: Read the following scenario. Imagine a market where there is perfect competition between two or…
A: *Answer:
Q: In which market structure does Johnson Electronics (Pty) Ltd operate? Provide a reason for your…
A: "Market structure depicts how firms are differentiated from each other based o the type of…
Q: Question 11 Refer to Figure 6-1 What price will Dough! charge to maximize profits? (Write just the…
A: "For a monopoly, profits are maximized at a point where marginal revenue curve (MR) intersects the…
Q: Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand…
A: Given information Qdx=65000-11.25Px+15Py-3.75I+7.5A--(1) Qsx=7500+14.25Px-15Pz-3.75C---(2) equation…
Q: A firm has the following average variable cost equation. AVC = 60 – 15Q+ Q? And the average total…
A: Average total cost is the sum of average variable cost and average fixed cost i.e., ATC = AVC + AFC…
Q: A company is considering the purchase of new equipment for $93,000. The projected annual net cash…
A: Net Present value is a tool which is used for calculating the current total value of a future assets…
Q: The Canadian economy produces a vast array of goods and services, trom cars to cannabis Suppose that…
A: In an economy, GDP is the sum of the components of aggregate demand that are consumption, net…
Q: Instructions: Analyze and answer the following questions A US Company plans to sell farm equipment…
A: Many factors like legal, economic, political, and cultural factors can affect the business condition…
Q: for product X. Eq. 1 Eq. 2 Qdx = 65,000 – 11.25P; + 15P, – 3.75/ +7.5A Qsx = 7,500 + 14.25PX – 15P,…
A: We are going to solve these questions using partic derivative techniques
Q: Which of the following is a method a incumbent's can use to make limit pricing a credible threat?…
A: When talking about the competition at the marketplace, incumbents are the sellers who tries to get…
Q: As a part of their benefits program, Lonny's Grocery Store offers its employees a PTO package that…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: The marginal product of labor is the increase in total product from a Select one: a. one dollar…
A: "Total product refers to the total output produced by inputs involved in the production process."
Q: Economics The presence of co-insurance has the following effect on price elasticity of demand:…
A: When talking about co-insurance, it can be said that it is the amount of money paid by an insured…
Q: Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government…
A: Short-run equilibrium occurs at the intersection point of the short-run aggregate supply (SRAS) and…
Q: Amagine you are the manager of a car dealership and you are trying to create an economic model to…
A: An economic model creates a similar situation for a firm in accordance to real life through which…
Q: Suppose two consumers, Jack and Suzy, have identical utility functions defined for pencils (P) and…
A:
Q: Please perform the quantitative analysis with the above variables. 1.0 Introduction 1.1 Objectives…
A: Sales operations are a set of actions and processes that assist a sales organization run more…
Q: a. What will be the total change in money supply as the result of this increase in deposits? Explain…
A: The concept of money supply states that when money is deposited in the bank, after keeping the…
Q: 19. Odette has a base monthly salary of S1.500 and eams a 5% commission on all sales she makes at…
A: One of the most important incentives given by the firms to their employees are incentives on Sales…
Q: Your pharmaceutical firm is seeking to open up new international markets by partnering with various…
A: The market price is the ongoing cost at which a resource or administration can be traded. The market…
Q: The government is considering passing a regulation that will prohibit the use of a certain chemical…
A: Given, P1 = $5 Q1 = 6 million units P2 = $6 Q2 = 4 million units slope of demand curve, m=change in…
Given the following marginal cost values for a given asset, determine the equivalent uniform annual cost for the first three years and identify the minimum cost life. Use an interest rate of 10%.
Year |
Marginal cost of existing asset |
1 |
$3,500 |
2 |
$3,150 |
3 |
$3,400 |
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
- A company plans to design and build transport vehicles for the Army. The cost for the design is $10M. The cost for the test prototype is $2M. The cost to produce and test each production vehicle is $0.5M. What is the non-recurring cost? What is the recurring cost per vehicle? What price per vehicle must the company sell the vehicles to the government to make $50K profit per vehicle if the company sold 50 vehicles? 100 vehicles? Why does the price per vehicle go down when production goes up?Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integerA company in Denver started a new production line to manufacture a new part. The table below showed the costs. If the parts will be sold at the selling price = $15.00/unit, what annual production quantity need to be manufactured to make it breakeven? Material and Parts Cost $3.00/unit, Labor Costs $4.00/unit, Overhead Cost $2,500,000, Annual Production Quantity ? units
- The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order $520 Relevant carrying costs per year for each product: Required annual return on investment 16% Required other costs per year $9 Annual demand is 32,000 prroducts per year. The purchase price per product is $51.What is the economic order quantity?Jumbo Company uses 1,100 units of an particular item each year. Carrying the item in inventory costs $200 per unit per year. It costs $150 for each order of the chemical. The firm uses the item at a constant rate each year. Calculate the Economic Order Quantity AND Use the data from problem above and assume that Jumbo Company operates 250 days per year. Also assume that its total usage is 1,100 units per year. There is a lead time of 2 days and Jumbo desires to keep a safety stock of 4 units. Calculate the reorder pointQuestion 4 XYZ Company manufactures and sells plates. Present sales output is 4,000,000 units per year at a selling price of $.70 per unit. Fixed costs are $800,000 per year. Variable costs are $.35 per unit. What is the Contribution Margin for a year? $1,400,000 $800,0000 1,600,000 $400,000
- Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer O a. 152 O b. None is correct O c. 725 O d. 625 O e. 615A manufacturing company leases for $100,000 per yr a building that houses its manufacturing facilities. In addition the machinery in the building is being paid for installments of $20,000 per year. Each unit of product produced costs $15 in labor and $10 in materials and can be sold for $50. a) How many units per year must be sold for the company to break even? b) If the selling price is lowered to $45 per unit how many units must be sold each year for the company to earn a profit of $80,000 per year?The projected profit of a hi-tech recording disks retailer is Birr 200,000 for the current year based on sale volume of 200,000 units. The company has been selling the disks for $16 each; variable costs consist of the Birr 10 purchase price and Birr 2 handling cost. The retailer’s annual costs are Birr 600,000. Required: a. Calculate the breakeven point for the current year in units. b. What will be the company’s profit for the current year if there is a 10% increase in projected unit sales volume? c. Management is planning for the coming year when it expects that the unit purchase price of the disks will increase by 30%. What volume of dollar sales must the retailer achieve in the coming year to maintain the current year’s profit if the selling price remains constant at Birr 16
- A company is developing a new electronic product. It expects to spend $38 million on Research and Development and then another $6 million on Manufacturing Engineering. After completing all this, the company expects a cost of $15 per unit to manufacture and plans to build in a profit of $5 per unit into the price. The company needs to recover the cost of R&D plus Manufacturing Engineering over five years through sales of 4 million units over those five years. What will the company need to establish as the sales price for the unit?Write Company has a maximum capacity of 200,000 units per year. Variable manufacturing costs are $12 per unit. Fixed overhead is $600,000 per year. Variable selling and administrative costs are $5 per unit, and fixed selling and administrative costs are $300,000 per year. The current sales price is $23 per unit. A. What is the breakeven point in (a) sales units and (b) sales dollars? B. How many units must the Write Company sells to earn a profit of $240,000 per year?ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. A company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data: Option A: Purchase 10,000 items per year at a fixed price of $8.50 per item. The cost of placing the order is negligible according to the present cost accounting procedure. Option B: Manufacture 10,000 items per year, using available capacity in the factory. Cost estimates are direct materials = $5.00 per item and direct labor = $1.50 per item. Manufacturing overhead is allocated at 200% of direct labor (= $3.00 per item). Based on these data, should the item be purchased or manufactured?