Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. • Prevailing price of corn/sack is P1,200. • He incurred the following annual expenses (P): • Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500 insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 Variable costs: seeds@5,000; fertilizer@10,500: labor@18,0003; pesticides@8,000; tractor@3,000; transportation,@3,500.

Hypothetical problem A corn farmer produces 300 sacks of corn at 50 kgs./sack. • Prevailing price of corn/sack is P1,200. • He incurred the following annual expenses (P): • Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500 insurance @3,000; interest on loan @4,200; entrepreneuship@7,000; salaries/wages@10,000; taxes@4,600; depreciation@2,600 Variable costs: seeds@5,000; fertilizer@10,500: labor@18,0003; pesticides@8,000; tractor@3,000; transportation,@3,500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Number of variable inputs Total output Marginal product Average product3 - 18 304 - 20 -5 130 - -6 - 5 -7 - - 19.5
Define the terms "use value" and "non-use value" with an example.
Calculate the value of gross value added at factor cost with given information:- Sales = $200 Change in stock = $40 Purchase of raw material = $160 Subsidy = $10
Problem 11:Hick's Furniture Company (not a real company) sellsindustrial furniture for office buildings. During the current year, the company reported costs of goods soldon its income statement of $1,650,000. The company'sbeginning inventory was $2,750,000, and its endinginventory was $3,825,000 (all in U.S. dollars). What is thecompany's inventory turnover ration for the current year?
For the year 2020, what is total amount of Property,Plant & Equipment (PPE) for Woolworths Group Ltd & Coles Group Ltd? Both are Australian Companies. See 2020 Annual Report and answer it.
Calculate the value of Gross value added at factor cost using:- Import duty = 2000 Price per unit = 18 Excise = 2000 Change in stock = 1200 Intermediate cost = 16000 Subsidy = 600 Output sold = 10,000
Prepare an excel sheet for undergiven answers:please prepare excel sheet ....5. Cost of Inventory Sold: Cost of jeans sold: 16 * $19 = $304Cost of sweaters sold: 2 * $9 = $18Cost of purses sold: 2 * $27 = $54Cost of suits sold: 2 * $67 = $134Total Cost of Inventory Sold = $304 + $18 + $54 + S134 = S510 6. Gross Margin: Gross Margin = Total Gross Sales - Total Cost of Inventory Sold Gross Margin = $1,418 - $510 = $908 7. Direct Expenses for the Month: Advertising: $200Salaries: $500Rent expenses: S200Total Direct Expenses for the Month = $200 + $500 + 5200 = S900 Direct Expenses for the Day (assuming a 31-day month) = Total Direct Expenses for the Month / 31 Direct Expenses for the Day = $900 / 31 = $29.03 8. Indirect Expenses for the Month: Water: $75Electricity: $89Insurance: $60Total Indirect Expenses for the Month = $75 + 589 + 560 = 5224 Indirect Expenses for the Day (assuming a 31-day month) = Total Indirect Expenses for the Month / 31 Indirect Expenses for the Day = $224 / 31 =…
Self-Study Problem 4.4 In October 2020, Jack, a single taxpayer, sold IBM stock for $12,000, which he purchased 4 years ago for $4,000. He also sold GM stock for $14,000, which cost $17,500 3 years ago, and he had a short-term capital loss of $1,800 on the sale of land. The tax rates on long-term capital gains are as follows: Income Level Long-TermCapital Gains Rates Married filing jointly $0–$80,000 0% $80,001–$496,600 15% > $496,600 20% Single $0–$40,000 0% $40,001–$441,450 15% > $441,450 20% Head of household $0–$53,600 0% $53,601–$469,050 15% > $469,050 20% If Jack's other taxable income (salary) is $78,000, what is the amount of Jack's tax on these capital transactions?$fill in the blank 1
Value added by a single firm is measured as total sales revenue O a. Plus indirect business taxes O b. minus the purchase of intermediate goods OC. Minus factor payments (labour and capital) O d. Plus depreciation
Q5) A firm is planning to manufacture a new product. The sales department estimates that the quantity that can be sold depends on the selling price. As the selling price is increased, the quantity that can be sold decreases. Numerically they estimate: P = $35.00 - 0.02Q where P =selling price per unit Q = quantity sold per year On the other hand, the management estimates that the average cost of manufacturing and selling the product will decrease as the quantity sold increases. They estimate C = $4.00Q + $8000 where C = cost to produce and sell Q per year The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, where income minus cost will be a maximum. What quantity should the decision makers plan to produce and sell each year?
Using the specific identification method: Date Units purchased Cost per unit Ending inventory June 1 12 Echo Show’s 360 $ 272 2 Echo Show’s from June July 1 52 Echo Show’s 360 247 11 Echo Show’s from July August 1 65 Echo Show’s 360 237 8 Echo Show’s from August a. Calculate the ending inventory ____________ ? b. Calculate the cost of goods sold _____________ ?
Felde Company had $150,000 of net income in 2011 when the s4elling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2012. The president of Felde Company is under pressure from stockholders to increase netincome by $60,000 in 2012. Instructions (a) Compute the number of units sold in 2011. (b) Compute the number of units that would have to be sold in 2012 to reach the stockholders’ desired profit level.