B. Marginal and absorption costing: different rationales. Absorption costing stems from the view that certain necessarily incurred to allow output to occur and should therefore be included in unit costs. In effect‚ absorption costing is based on a functional classification of costs; that is all out put related (or production costs are attributed to cost units‚ with non production costs being excluded from unit costs (at least for stock valuation and profit measurement purposes). Marginal costing
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total revenue (the marginal revenue) from the fourth shirt per day. What price reduction was necessary to sell four rather than three shirts? Marginal revenue for the fourth shirt is $41 even though it price is $44. Price reduction is $1 which is from $45 to $44. 2) What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day? The change in total revenue from selling seventh shirts rather than sixth shirts is $28.The marginal revenue of the
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their decision. The premises for these models is to find out what & how to produce products‚ this is modeled after the Traditional Economic System. Economists are concerned with exactly how much a person will pay for "goods" and that is considered marginal utility. All of this ties to the Diamond-Water Paradox because the demand for diamonds is high as is the price‚ with that the demand for water is also high but the cost is significantly lower. As the consumption of water increases it is valued
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fixed at 10 units. (a) Determine the total product function (TPL) for input L. (2 marks) (b) Determine the marginal product function for input L. (2 marks) (c) Determine the average product function for input L. (2 marks) (d) Find the number of units of input L that maximizes the total product function. (2 marks) (e) Find the number of units of input L that maximizes the marginal product function. (2 marks) (f) Find the number of units of input L that maximizes the average product function
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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demand for your parking lot spaces is -2‚ and price is $8 per day. If your MC is zero‚ and your capacity is 80% full at 9 A.M. over the last month‚ are you optimizing? We are clearly not optimizing because we are only optimized when marginal revenue equals marginal cost. Because our costs are sunk we should lower our prices so that we can fill to capacity. 14.4 A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value
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older and inefficient generation plants which are normally not used but being used to fulfill high demand in peak hours and also distribution cost is high because of high demand for electricity creates transmission congestion. Smart pricing provides marginal cost will give a more comfortable using style to consumer and help to conservation of energy. In last part of the article express with mathematical calculations that installation of smart meters is highly cost-effective than adding new generation
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Axeon NV Project Review for the Production of AR-42 within the UK By Team 1- Ahsan‚ Biljana‚ Jason‚ Pavi‚ Silvia‚ Rick April 6‚ 2015 Table of Contents Executive Summary 3 Axeon N.V and The Hollandsworth UK Proposal 4 Analysis of the UK Proposal 4 Analysis of the Netherlands Proposal 5 Corporate Structure and Strategy 6 Transfer Pricing and Compensation 7 Recommendation 7 Appendix 9 Exhibit 1 –Axeon Sales Distribution 9 Exhibit 2 –Incremental Variable Cost 9 Exhibit 3 – Manufacturing in Netherland
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ACCOUNTING 5250 Managerial Accounting Case Study- Whale Printing Company This case study is located in the Assignment Section of your Blackboard. You are to analyze: Question 1: - What are the key issues? Answer 1: - An organization should include the 5 M’s of management in order to create value‚ run the business successfully and efficiently. These 5 M’s include: Money‚ Materials‚ Manpower‚ Machinery‚ and Methodology. The requirements for production usually represented as capital‚ labour
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*_MC=MR___Q=110________ Approximate mark up over cost ___*__There would be no mark up over cost___ In the long run‚ the price falls to $7.50. Why does this happen? *The business operates at the minimum average total cost (ATC)‚ which at $7.50 is equal to the marginal cost. Price‚ Cost What is the new profit maximizing output? _*_Minimum Average Total Cost (ATC)____Q=90_________________ $12.50 MC $10.00 ATC P=MR $7.50 $5.00 $2.50 $0.00 10 20 30 40 50 60 70 80 90 100 110 120 130 ! Quantity Page !2
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