mimiloveyuhh
10.05.2021 •
Business
Which of the following will lead to an increase in the firm's short-run demand for labor? an increase in price of the final product's substitute good an improvement in labor productivity a decrease in the price of the final product a decrease in the number of buyers for the final product
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Ответ:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ;Replace with old machine(Alternative 2);Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500$50500
COSTS
Purchase price$0-$75000-$75000
Direct labor-$56000-$3700019000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss)-$56000-$61500-$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)