Search & Filtering
The average cost of garment is £28.50
- The labour involved in producing on average 30 hours
- Casual labour currently costs £5.50 per hour; will have to increase this next year by at least 5%
- The transportation costs with the cost of delivery amount to £4.50 per sweater.
the company also runs a Head Office which costs £100,000 per year. The Directors require total salaries of £125,000 and each year they award themselves a 5% pay increase.This year advertising spend is £115,000. Next year the Sales Director would like to advertise in airline magazines, he believes that this would increase sales from this year’s forecast of 2,000 sweaters. He estimates that if the advertising budget is increased to £285,000 then sales would increase to 5,000 sweaters.
sweaters sell for between £200 and £400.
- Is the Managing Directors friend right in suggesting that marginal costing is an appropriate way to control costs and set a selling price? You should illustrate your answer with relevant calculations.
Q.2 Show diagrammatically the impact on the firms profit if in the short run demand
or the product reduces.
you went to tae shop and found that the tae price is increased from rs.5 to rs.10. Therefore I, the demand for coffee increased from 20 cups to 50 cups. what will be the cross elasticity of demand
A man wishes to have an amount of P2,769.84 after 5 years. He deposited P500 each year into a savings bank that pay “r” percent per annum compounded continuously. Compute the value of “r”.
(a) Which island has an absolute advantage in producing coconuts? Explain.
(b) Which island has a comparative advantage in producing coconuts? Explain.
(c) Assume Zeetopia and Freshland decide to specialize according to their comparative advantages and 1 ton of coconuts is exchanged for 1 ton of mangoes. Are specialization and trade under these terms beneficial to both Zeetopia and Freshland? Explain.
(d) Assume the two islands experience constant opportunity costs in the production of the two products. Draw a correctly labeled graph illustrating Zeetopia’s and Freshland’s production possibilities, showing coconuts on the horizontal axis and mangoes on the vertical axis. Plot the numerical values from the table above on your graph.
(e) On your graph in part (d), show a combination of coconuts and mangoes, labeled as point X that is unattainable for Freshland but feasible and inefficient for Zeetopia.
Which of the following is recorded in the U.S. balance of payments account? 1. foreign investment in the United States II. U.S. investment abroad III. the U.S. government deficit or surplus *
A) III only
OB) I and II
C) I and III
OD) I, II and III
Suppose a small country produces only food and clothing. An earthquake destroys many of the clothing factories, but the ability to produce food is unaffected.
A fall in price of from 1 shs 0.50 per bushel to 9.20 per bushel, the quantity of the demand from 18800 to 21200 per bushells. What is the price elasticity of demand?
if the central bank is able to keep the inflation rate equal to the target inflation rate every period, will there be dramatic fluctuations in unemployment?
A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this money will be spent in the town by factory personnel. The people in the town who receive this money are expected to spend 60% of what they receive in the town, and so on. What is the total of all this spending, called the total economic impact of the factory, on the town each year?
