.A monopolistically competitive firm is operating at a short-run level of output where price is $30, average total cost is $27,
1 answer:
You might be interested in
Answer:
- Punch Press - $12,502
- Lathe - $3,908.52
- Welder - $2,344.36
Explanation:
Cost will be allocated based on proportion of total Appraiser's estimate of fair value.
Total Appraisal Estimate = 16,000 + 5000 + 3,050
= $24,050
Total Purchase Price = Purchase price + Installation cost
=17,000 + 1,800
=$18,800
Punch Press
Punch Press proportion =
= 66.5%
Punch Press Cost = 66.5% * 18,800
= $12,502
Lathe
Lathe proportion =
= 20.79%
Punch Press Cost = 20.79% * 18,800
= $3,908.52
Welder
Welder proportion =
= 12.47%
Punch Press Cost = 12.47% * 18,800
= $2,344.36
Note; There are multiple variants of this question so be sure to check the figures to ensure it is the right one.