Question

In: Operations Management

Calculate total costs of marketing a commodity with the given hypothetical data for mango. Producer costs...

Calculate total costs of marketing a commodity with the given hypothetical data for mango. Producer costs Activity Cost ($) Land preparation 5 Plant protection 4 Irrigation 2 Sorting and grading 3 Transportation 4 Loading and un loading 2 Labor charges 2 Costs of middlemen $0.5 Costs of wholesaler $0.75 Costs of retailer $0.4

PLEASE ANSWER IT ONLY IF YOU ARE SURE ABOUT THE ANSWER. I HAVE POSTED IT EARLIER ALSO BUT I COULD NOT GET THE CORRECT ANSWER

Expert Solution

Formula to calculate marketing costs is C = Cf + Cm1 + Cm2 + . . . + Cmn

Where Cf is cost incurred by producer from the production till the produce it brought to market.

Cm= costs incurred by middle men.

Costs incurred by producer are of two types: production costs and post-production costs

Activity	Cost ($)
Land preparation	5
Plant protection	4
Irrigation	2
Sorting and grading	3
Transportation	4
Loading and un loading	2
Labor charges	2

These costs must be segregated because we are concerned about post production costs. Post production costs are sorting and grading; transportation; loading and unloading.

Therefore producer costs= 3+ 4+ 2= 9

Cf= $9

Cm1 (Costs of middlemen) = $0.5

Cm2 (Costs of wholesaler) = $0.75

Cm3 (Costs of retailer) = $0.4

Cm1+Cm2+Cm3= 0.5+0.75+0.4= 1.65

Marketing costs= Cf + Cm1 + Cm2+Cm3

= 9+ 1.65= 10.65

Therefore marketing costs are $10.65

keosha answered 2 months ago

5. The data regarding purchases and sales of a commodity is given in the table below:...

5. The data regarding purchases and sales of a commodity is given in the table below: Date Description Units Unit Cost May/01 Inventory 25 $40 May/06 Sale 20 $50 May/08 Purchase 20 $41 May/16 Sale 10 $55 May/20 Purchase 20 $42 May/23 Sale 25 $55 May/30 Purchase 15 43 Instructions: Determine the cost of the inventory balance at May/31, using the FIFO and LIFO Perpetual. Determine the cost of the inventory balance at May/31 using the Average Cost periodic method....

T Given below is hypothetical data on two stocks on the LUSE and the market data...

T Given below is hypothetical data on two stocks on the LUSE and the market data (All Lusaka Share Index). The market data already includes dividends paid during the year. Stock 1 Stock 2 Market Index Year Stock Price Dividend Stock Price Dividend (Includes Dividends) 2013: K25.88 K1.73 K73.13 K4.50 17,495.97 2012: 22.13 1.59 78.45 4.35 13,178.55 2011: 24.75 1.50 73.13 4.13 13,019.97 2010: 16.13 1.43 85.88 3.75 9,651.05 2009: 17.06 1.35 90.00 3.38 8,403.42 2008: 11.44 ...

Calculate the mark-up on total costs for the owner.

Case Background A sole proprietor (the owner) has established a service business specializing in recruitment for businesses needing specialized Tool Industry staff. The trail balance at the end of the first three months of operations is provided below. Part of the service is to train people before they are placed with companies. The owner has asked, you, the accountant for HR, to prepare the answers to the questions below considering the notes provided. Trial Balance Accounts Debits Credits Cash 24,500...

Assume that the cost data in the following table are for a purely competitive producer: Total...

Assume that the cost data in the following table are for a purely competitive producer: Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions:...

A company produces a given commodity. Production costs are $10 per unit. The demand function for...

A company produces a given commodity. Production costs are $10 per unit. The demand function for this commodity is given by q = −2p + 1200, where q is the quantity demanded, and p is the selling price per unit. (a) Find the cost function C(q), and rewrite is as a function of the selling price p (that is, replace q by q = −2p + 1200). (b) Find the revenue function as a function only of the selling prince...

Suppose the total cost of a representative perfectly competitive apple producer is given as tc =...

Suppose the total cost of a representative perfectly competitive apple producer is given as tc = 12 + 6q + q^2$. All apple producers in the market are assumed to be identical. Suppose further that the demand for apples is estimated as qd= 18,000 − 500p and market supply is qs = 2,000 + 500p a. (2 points) Find the equilibrium market price and total supply of apples in the market. b. (4 points) What is the profit maximizing quantity...

Calculate average total cost, what is the most efficient (minimum ATC) output quantity given the costs...

Calculate average total cost, what is the most efficient (minimum ATC) output quantity given the costs below? What should be the cost to produce 900 units? Average Total Average Variable Step Fixed Total Output Cost Cost Cost Cost 0 $ 0 $50,000 $500,000 _________ 150 1,000 100,000 500,000 _________ 300 950 100,000 500,000 _________ 450 1,000 100,000 500,000 _________ 600 1,200 200,000 500,000 _________ 750 1,500 200,000 500,000 _________ 900 1,800 300,000...

Create a spreadsheet to calculate your projected total costs, total revenues, and total profits for giving...

Create a spreadsheet to calculate your projected total costs, total revenues, and total profits for giving a seminar on cost estimating. Make the following assumptions: You will charge $995 per person for a two-day class. You estimate that 30 people will attend the class, but you should keep an option to change this input. Your fixed costs include $500 total to rent a room for both days, setup fees of $500 for registration, and $300 for designing a postcard for...

Assume that the following cost data are for a purely competitive producer: Total Product Average Fixed...

Assume that the following cost data are for a purely competitive producer: Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 na $0.00 $0.00 na 1 $60.00 $45.00 $105.00 $45.00 2 $30.00 $42.50 $72.50 $40.00 3 $20.00 $40.00 $60.00 $35.00 4 $15.00 $37.50 $52.50 $30.00 5 $12.00 $37.00 $49.00 $35.00 6 $10.00 $37.50 $47.50 $40.00 7 $8.57 $38.57 $47.14 $45.00 8 $7.50 $40.63 $48.13 $55.00 9 $6.67 $43.33 $50.00 $65.00 10 $6.00 $46.50 $52.50 $75.00...

4. This is the data for a perfectly competitive producer. Output Total Cost 0 100 5...

4. This is the data for a perfectly competitive producer. Output Total Cost 0 100 5 110 10 130 15 170 20 220 25 290 30 380 35 490 A) How much will this firm produce when the price is $ 8? Why? B) How much profit or loss will he make? C)The firm comes to you for advice. Should he shut down? YES? NO? What are you basing your decision on? 5. Based on the data in question 4...