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3 years ago

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Assume a company had the following production costs: Direct labor $ 2 per unit Direct material $ 3 per unit Variable overhead $

4 per unit Total variable $ 9 per unit Fixed overhead ($50,000/10,000 units) $ 5 per unit Total production cost $ 14 per unit Under absorption costing, the total product cost per unit when 4,000 units are produced would be $22.50. True or False True False

1 answer:

Mamont248 [21]3 years ago

3 0

Answer:

Total production cost $ 14 per unit Under absorption costing True

The total product cost per unit when 4,000 units are produced would be $22.50 False

Explanation:

Direct labor $ 2 per unit

Direct material $ 3 per unit

Variable overhead $ 4 per unit

Total variable $ 9 per unit

Fixed overhead ($50,000/10,000 units) $ 5 per unit

Total production cost $ 14

Production Costs involve the fixed costs under absorption Costing. So the total Product cost under absorption costing is $ 14.

When 4,000 units are produced the production costs are as follows

Absorption Costing: 4,000 * 14= $ 56,000

Variable Costing : 4000 * 9= $ 36,000

So the second statement is false.

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3 years ago

The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6

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Answer:

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3 years ago

Read 2 more answers

You are given the market demand function Q=2800-1000p, and that each duopoly firm's marginal cost is $0.07 per unit, which impli

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Answer:

q1 = 910

q2 = 910

Explanation:

Given:

Q = 2800 - 1000p

Marginal cost = $0.07 per unit

Q = 2800 - 1000p

$p = \frac{2800 - Q}{1000}$

$p = \frac{2800- q_1 - q_2}{1000}$

Let's calculate profit of firm 1:

TR = p1 q1

$= \frac{2800 q_1 - q_1^2 - q_1 q_2}{1000}$

$MR = \frac{2800 - 2q_1 - q_2}{1000}$

MR = MC = 0.07

$\frac{2800 - 2q_1 - q_2}{1000} = 0.07$

Cross multiplying:

2800 - 2q₁ - q₂ = 70

2800 - 2q₁ = 70 + q₂

2800 - 70 - 2q₁ = q₂

2730 - 2q₁ = q₂...............(1)

Let's calculate profit of firm 2:

TR = p₁ q₂

$= \frac{2800 q_2 - q_1 - q_2^2}{1000}$

$\frac{2800 - q_1 - 2q_2}{1000} = MR$

MR = MC = 0.07

$\frac{2800 - q_1 - 2q_2}{1000} = 0.07$

Cross multiplying:

2800 - q₁ - 2q₂ = 70

2800 - 2q₂ = 70 + q₁

2800 - 70 - 2q₂ = q₁

2730 - 2q₂ = q₁................... (2)

Substitute 2730 - 2q₂ for q₁ in (1)...

Thus:

2730 - 2q₁ = q₂

2730 - 2(2730 - 2q₂) = q₂

2730 - 5460 + 4q₂ = q₂

-2730 + 4q₂ = q₂

-2730 = q₂ - 4q₂

-2730 = - 3q₂

q₂ = -2730/-3

q₂ = 910

Substituting 910 for q₂ in (2):

2730 - 2q₂ = q₁

2730 - 2(910)= q₁

2730 - 1820 = q₁

910 = q₁

q₁ = 910

The Cournot equilibrium quantities are: q₁= 910; and q₂ = 910

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Answer:

Post closing trail balance

Explanation:

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