Gushers Company produces 1000 packages of fruit snacks per month. The sales price is$5 per pack. Variable cost is $1.60 per unit, and fixed costs are $1800 per month.Management is considering adding a vitamin supplement to improve the value of theproduct. The variable cost will increase from $1.60 to $1.90 per unit, and fixed costs willincrease by 10%. At what sales price for the new product will the two alternatives (sellas is or process further) produce the same operating income? (Round your answer to thenearest cent.)O $5.48O $5.00O $3.88O $1.60< PreviousNext ►

Answer) Calculation of Selling price per unit to earn operating Income of $ 1,600 Operating Income =…

Answered: to improve the 90 per unit, an : will…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Based on the following sensitivity report, what would be the impact of changing the constraint right-hand side for Resource_A to 77 and, at the same time, changing the constraint right-hand side for Resource_C to 550? Variable Cells Final Objective Allowable Allowable Cell Name Value Reduced Cost Coefficient Increase Decrease $B$2 $B$3 Product 1 -2 5. 2 1E+30 Product 2 175 7 1E+30 1 $B$4 Product 3 -1.5 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease $H$9 Resource_A Resource B Resource C 100 1E+30 20 $H$10 525 800 1E+30 220 $H$11 700 1.75 700 200 110 100%. Applying the 100% rule, because the total change in the constraint right-hand sides
Q7: An individual lives for only two periods and has preferences given by the follow- ing intertemporal utility function: U = Ing₁ +aln(1 -h₁) + [Inc₂+aln(1 - h₂)] (1) where, c₁, c₂ denotes consumption in period 1 and period 2 respectively h₁, h₂ denote the labour supply in period 1 and 2 respectively. Therefore 1-h is the amount of leisure time in period 1. The term 3 is the discount factor. The problem of the individual at period 1 is to choose consumption in both periods and labour supply in both periods subject to the following budget constraints: +8= wh and c₂= w₂h₂ + (1+r)s where s denote the saving, w denotes the wates and r denotes the real interest rate. (a) Provide an economic interpretation of the two budget constraints written above. (b) Combine the two budget constraints written above and prove the economic interpretation of of life time budget constraint. (c) Set the Lagrangean function and find the first order conditions with respect to C₁ C₂, hi and h₂. (d) Find the…
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Where does the 60% come from? on part a Step 2?
Hh1.
Based on the following sensitivity report, what would be the impact of changing the constraint right-hand side for Resource_A to 73 and, at the same time, changing the constraint right-hand side for Resource C to 600? Variable Cells Final Objective Coefficient Allowable Allowable Reduced Cost Cell $8$2 $B$3 $854 Name Value Increase Decrease 1E+30 1. Product 1 -2 2 Product 2 175 16430 Product 3 -1.5 9 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease SHS9 Resource A 100 16430 90 SH$10 Resource B 525 s00 1E+30 340 SH$11 Resource C 700 1.75 700 390 160 Applying the 100% rule, The shadow price remains valid because the total change in the constraint right-hand sides does not exceed 10 3 of 5 Next > ASUS

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to improve the 90 per unit, an : will the two al me? (Round yo