Business, 27.02.2020 01:51 sindy35111

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 10 units of labor, 7 units of land, 2 units of capital, and 3 units of entrepreneurial ability, selling at prices of $20, $60, $60, and $20, respectively. Assume the firm can sell these 400 loaves at $2 per unit. Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the firm's total revenue? b. What is its total cost? c. Calculate the amount of economic profit or loss. d. Will it continue to produce banana bread? e. If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good? Next

Answers: 3

Show answers

Answers

Answer from: Petlover6975

Solution:

a. What is the firm's total revenue?

Multiply the sales price by either the number of units sold to determine overall revenue.

The total income amounts to 2 dollars (price) and 400 more (bread loaves sold).

Therefore, the total income is $800.

b. What is its total cost?

Multiply increasing variable usage (the number of units used) by input price and add both values together to measure total costs.

Total cost equals 10 × $20 (cost of labor) + 7 × $60 (cost of land) + 4 × $40 (cost of capital) + 3 × $20 (cost of entrepreneurial ability) = $840.

c.Calculate the amount of economic profit or loss.

For this operation, benefit / loss is equal to total revenue less overall cost. In this case, profit / loss is equivalent to $800 (total income) minus $840.

If the total income equals the total cost, the corporation will profit; but, if the total cost exceeds the total income, the company will have a loss.

d. Will it continue to produce banana bread?

The company will keep producing banana bread if it receives fine, with zero economic profit.

However, the firm can stop producing banana bread if it loses money (when its total cost equals its total revenue).

e. If this firm's situation is typical for the other makers of banana bread, will resources flow toward or away from this bakery good?

If the product has contributed in a positive way, other businesses or individuals are going to want to make banana bread. Therefore, resources are going to pour into this good bakery. With the economic loss, money must disburse this pastry commodity, when companies or individuals would leave the market so that the loss could not be prevented. When economic profit is negative, no change occurs, as no new companies enter the market, no companies leave. There is no change.

Answer from: Quest

Hi! so let’s say you buy two cds that’s a total of 20$ & two books , which is 12$, giving you the sum of 32$ , i would write it as ; c2+b2=32hope this : ) good luck!

Answer from: Quest

Ithink its a hope it ! : )

Another question on Business

Business, 22.06.2019 10:30

Issued to the joint planning and execution community (jpec) initiates the development of coas; it also requests that the supported ccdr submit a commander's estimate of the situation with a recommended coa to resolve the situation (joint force command and staff participation in the joint operation planning and execution system, page 10)

Answers: 2

Answer

Business, 22.06.2019 14:20

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

Answers: 2

Answer

Business, 22.06.2019 21:00

Noah met an old friend at a coffee shop. he jotted down the friend's new phone number, but later that afternoon he could not find it or remember what he had done with it. a couple of days later, noah went back to the coffee shop, and while waiting in line, he suddenly remembered where he had put the phone number. this is an example of:

Answers: 1

Answer

Business, 23.06.2019 09:00

Matthew decides to buy expensive designer jeans. less expensive jeans are available, but the added cost of the designer brand is worth it to matthew most likely because

Answers: 1

Answer

You know the right answer?

With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume t...

Questions