Lydia's Marginal Benefits

125 Words1 Page
bulb-icon

Recommended: DECISION making task

Using marginal analysis, Lydia should extend her nail salon's hours of operations by five hours. If Lydia extends her hours by six, she would lose $5 in revenue. Lydia's marginal benefit, if she decides to stay open for two hours instead of one hour, is $25. Lydia's marginal cost, if she decides to stay open for two hours instead of one hour, is $10.
DeShawn's marginal benefit, if he sells a basic detailing package, is $75. The marginal cost of adding the engine detailing to the basic detailing package is $20. DeShawn should not continue to offer the engine detailing service because the marginal cost is higher than the marginal benefit. DeShawn gains $35 from a basic package and gains $30 from the upgraded package.

Show More
Related

  • Accounting for the Cost of Software Programs at AdCom Games Develop a Product Costing System

    1524 Words  | 4 Pages

    Overhead based on direct labor includes the cost of the Product Development Support Center, interest expenses, and general and administrative expenses. The Product Development Support Center failed to account for hours spent on each product, which will not only complicate the product cost calculations, but also the calculation of capitalization expenses later on. The Development Support Center will be most used during the peak (i.e. most hours) time of development for each product, and hours worked will probably be the best way to divvy up the costs of the support center. The money invested in the company is being used on developing each product right now. I figured interest would best be divvied up by hours to attribute the interest expense to the product using the most of the investment. Similar to the reasons stated before general and administrative costs are going to be associated with the most prominent product, and that is best seen through hours. (Figure A)

    Read More

  • Mongolian Grill Analysis

    1767 Words  | 4 Pages

    Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.

    Read More

  • An Analysis Of Peculiar Benefits By Roxane Gay

    818 Words  | 2 Pages

    Peculiar means odd, strange or unusual. So how could benefits be peculiar? It’s how we as people make it to be, as Roxane Gay emphasizes in her article “Peculiar Benefits,” published in 2012. Roxane Gay argues how we must move past the dispute as to why we must recognize privilege to get past societal problems and to not allow its meaning to continue to become diluted. Gay builds a strong argument mainly through audience adaptation, language and her choice of rhetoric was effective enough to affect my perception on her point of view.

    Read More

  • Big Crop Won T Reduce Pecans Summary

    405 Words  | 1 Pages

    The graph above and off to the right represents the demand and marginal cost for a firm. In the retail market, they have control over the price at which they sell their products to consumers. In the article they state that the firms buy the pecans from wholesale markets for a small price, like eighty-five cents, and then they go off and sell the same pecans for $5.50. A decrease in the price causes a decrease in marginal cost.

    Read More

  • Effects Of Soft Returns Of Investment

    1126 Words  | 3 Pages

    The following table demonstrates the PV of costs, the PV of benefits and the NPV respectively, over 5-year period for the investment:

    Read More

  • Cost Benefit Analysis In Health Care

    1504 Words  | 4 Pages

    There are several basic approaches that can be utilized when conducting economic evaluations for any new health care intervention; which can include medications that are designed for the treatment and prevention of disease and how to relate the effectiveness with the overall monetary value of the new treatment. The economic tools that can be employed to perform such an analysis can be broken down into four basic parts that consist of cost-minimization analysis (CMA), cost-effectiveness analysis (CEA), cost-benefit analysis (CBA) and cost-utility analysis (CUA). These four categories will contain the major financial analytical techniques employed when evaluating medical treatments and interventions along with other types termed cost-consequence

    Read More

  • College Forensics Case Study

    554 Words  | 2 Pages

    1. Hire hourly coaches to supplement our limited staff. 40 hours at going rate ($16) Total 640

    Read More

  • Olivers Market

    1751 Words  | 4 Pages

    Fourth problem- Demographic data on the two stores, Cotati, and Santa Rosa are closely related. A decision needs to be made on which store to purchase, or to purchase both stores. Can Oliver Market make a profit with these stores is the question. Also Steve and Tom need to think about their competitor best and weak strategy and who are entering in the demographic markets as well as which rivals are strong candidates to expand their product offering and enter new product segments where they do not currently have a presence.

    Read More

  • Lille Tissages S.A.

    1474 Words  | 3 Pages

    The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).

    Read More

  • Marketing And Product Marketing Case Study: Playtex

    1510 Words  | 4 Pages

    The projected revenue of sales for our first year is based on the cost of production, at .25 per disposable water bottle nipple, including packaging. Purchase options will consist of; travel size of 5 sold at $5.57, 12 nipples sold at $11.00, 25 nipples sold at $22.50, and 50 nipples sold at $42.00. The projected sales will be set at a minimum of 12,775 individual packages sold daily, which equals a revenue of $3,421,875 annually. Listed below is the expected breakdown:

    Read More

  • Denver's Financial Case

    1353 Words  | 3 Pages

    The calculations of Denver’s return on assets, profit margin, and asset turnover, both with and without the new product line are: The return on asset $12,000/$100,000 = .12 current results, $13, 500/$100,000 = .135 proposed without cannibalization, $12,000/$100,000 = .12 proposed results with cannibalization, next the Profit margin $ 12,000/$45,000 = .27 current results, $13,500/$60,000 = .225 proposed results without cannibalization, $12,000/$50,000 = .24 proposed results with cannibalization, and lastly, Asset turnover $45,000/$100,000 = .45 current results, $60,000/$100,000 = .60 proposed results without cannibalization, and $50,000/$100,000 = .50 proposed with cannibalization. The chart is located in Example A.

    Read More

  • Pros And Cons Of Buying A Truck

    227 Words  | 1 Pages

    For years Justin saved $2,000.00 to buy him a truck. He decided to go to the car lot to search for a reliable transportation. There are key components that made the difference in which vehicle he wanted to purchase; for example, space, condition, features, price and safety. Justin was interested in two trucks, but was undecided about which one to purchase. He begins to think about the pros and cons in each truck. First he wanted to see the similarities in both trucks, which were both trucks were manufactured in 1998 and have extended cabs. Also, pickup truck A and B are in drivable condition and the maintenance on the cars are not very expensive. He notices that both trucks have some difference. On one hand pickup truck A’s price tag says

    Read More

  • Cupcake Persuasive Essay

    1290 Words  | 3 Pages

    Amy is going to make cupcakes and sell them during the holidays. She is trying to figure out how much she should charge for a cupcake. If she sells it for 1 dollar, she cannot leave profit or if she sells it for 5 dollars, she cannot sell them all. How much Amy should charge for a cupcake?

    Read More

  • Difference Between Perfect And Perfect Competition

    1416 Words  | 3 Pages

    So total revenue (TR) will be simply P × Q, where (P = price and Q = quantity sold). Marginal revenue (MR), the increase in total revenue for production of one additional unit, will always be equal to the market price for a price

    Read More

  • Case Study: One Motorcycle One Guitar

    720 Words  | 2 Pages

    Scotland has an absolute advantage over production of both motorcycle and guitar also. Here, if Scotland commits all of its labor (9+2) for production of motorcycle for which Scotland has an absolute advantage. Scotland produces (9+2) ÷ 9= 1.22 units of motorcycle. If Scotland commits all its labor (9+2) for guitar, Scotland produces (9+2) ÷ 2= 5.5 units of guitar. Whereas, if Ireland commits all its labor (15+2.5) for production of motorcycle, Ireland produces (15+2.5) ÷ 15= 1.16 units of motorcycle. If Ireland commits all its labor (15+2.5) for production of guitar, Ireland produces (15+2.5) ÷ 2.5= 7 units of

    Read More

More about Lydia's Marginal Benefits

Open Document