Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.

Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 2.2CE

See similar textbooks

Similar questions

Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%
Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is $100 $80 $1005 $800
Hello can anyone help me answer this one question. Thank you!
Is Fuel a variable, fixed or overhead cost?
There is a road between the suburbs and downtown. The road becomes congested at rush hour. As long as no more than 99 people use the road at rush hour, the trip takes 30 minutes. When the 100st person enters the road, everyone slows down and the trip now takes 31 minutes. People value their time at $6 per hour (i.e., $0.10 per minute) and so a 30-minute trip costs $3. What is the total social cost of 100 people using the road?
The global microchip shortage is causing significant price increases for both new and used vehicles (and for a wide variety of other consumer products). Does this necessarily mean that the revenues earned by chip manufacturers will be up? Why or why not?
Q)Vegemite has been recently introduced to the Chinese market. It sells for the equivalent of $2 per jar, and costs $0.50 per jar to make. The company’s fixed costs are $20,000. How many jars of vegemite need to be sold to break even?
Question 4. Please help with a & b. Thank you
Paccar Winch makes winch components for its different product lines. The firm operates its production facility three hundred and five days per year. It has orders for about twelve thousand winch components per year and has the capability of producing one hundred and five per day. Setting up the winch production costs fifty five dollars. The cost of each winch component is one dollar and ten cents. The holding cost is fifteen cents per winch component per year. a) What is the optimal size of the production run? b) What is the average holding cost per year? c) What is the average setup cost per year? d) What is the total cost per year, including the cost of the winch components?
A manufacturer of hospital supplies has a uniform annual demand for 500,000 boxes of bandages. It costs $20 to store one box of bandages for one year and $ 500 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs? The company should produce boxes of bandages □ time(s) a year. A manufacturer of hospital supplies has a uniform annual demand for 500,000 boxes of bandages. It costs $20 to store one box of bandages for one year and $500 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs? C The company should produce boxes of bandages time(s) a year.
You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
Please do in excel