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gizmo_the_mogwai [7]
3 years ago
9

A new machine comes with 200 free service hours over the first year. Additional time costs $150 per hour. What are the average a

nd marginal costs per hour for the following quantities? a) 125 b) 225 c) 325
Business
1 answer:
pishuonlain [190]3 years ago
5 0

Answer:

(a) 0; 0

(b) $150 per hour; $16.67 per hour

(c) (b) $150 per hour; $53.57 per hour

Explanation:

(a) Number of hours = 125

Marginal cost = 0 (since service is cost less upto 200 hours)

Average cost = 0

(b) Number of hours = 225

Marginal cost = $150 per hour

Total cost = $150 × (225 - 200)

                = $150 × 25

                = $3,750

Average cost = Total cost ÷ Number of hours

                       = $3,750 ÷ 225

                       = $16.67 per hour

(c) Number of hours = 325

Marginal cost = $150 per hour

Total cost = $150 × (325 - 200)

                = $150 × 125

                = $18,750

Average cost = Total cost ÷ Number of hours

                       = $18,750 ÷ 325

                       = $53.57 per hour

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2 years ago
In a small​ town, a steel mill produces air pollution. if the government does not​ intervene, the equilibrium price of steel wil
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Select the items that describe perfect competition.
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2 years ago
The Creamery is analyzing a project with expected sales of3,800 units, give or take 5 percent. The expected variable cost per un
vaieri [72.5K]

Answer:

operation cash flow ( OCF ) is  $98800

Explanation:

given data

number of units = 3800 units

variable cost = $185 per unit

fixed costs = $364,000

depreciation expense = $104,000

sales price = $305 per unit

tax rate = 35 %

fix cost = $360,000

to find out

what is the OCF given this analysis

solution

we know operation cash flow ( OCF ) is express as

OCF = [ { selling - variable cost ) × no of units } - fixed cost ] × [ tax rate ] + [ deprecation × tax rate ]      ..............................1

put here all these value

OCF = [ { 305 - 185 ) × 3800 } - 360000 ] × [ 35% of income before tax ] + [ 104,000 × 0.35 ]

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OCF = $98800

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3 years ago
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