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2 years ago

Costs that increase as production increases and decrease as production decreases are:____.

Business

1 answer:

pychu [463]2 years ago

5 0

Costs that increase as production increases and decrease as production decreases are <u>Variable costs</u> .

A Variable cost is a corporate cost that adjusts in percentage to how plenty a business enterprise produces or sells. Variable charges grow or lower depending on a corporation's production or income quantity—they rise as production will increase and fall as manufacturing decreases.

Variable costs are fees that change as the quantity adjustments. Examples of variable fees are raw materials, piece-price hard work, manufacturing components, commissions, delivery fees, packaging substances, and credit score card expenses. In a few accounting statements, the Variable prices of manufacturing are called the “price of products bought.”

Variable fees are fees that alternate as the amount of the coolest or carrier that a business produces modifications. Variable prices are the sum of marginal charges over all units produced. They also can be taken into consideration normal charges. Constant charges and variable fees make up the 2 components of the overall price.

Learn more about Variable costs here brainly.com/question/17594595

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The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities o

Flauer [41]

Answer:

a. $1.08

Explanation:

Total assets include net fixed assets, working capital and current liabilities. Harrisburg Store's total assets are:

$A= \$22,407+\$2,715+\$3,908\\A=\$29,030$

The total asset turnover is the amount of money worth of sales generated from every $1 in total assets and is given by:

$TAT=\frac{sales}{assets}=\frac{\$31,350}{\$29,030} \\TAT = \$1.08$

$1.08 worth of sales are generated from every $1 in total assets.

7 0

3 years ago

On December 31, Strike Company sold one of its batting cages for $20,084. The equipment had an initial cost of $223,162 and had

Anna35 [415]

Answer:

Loss on disposal = $2232

Explanation:

To calculate the amount of gain or loss on sale, we must first calculate the net book value or NBV of the asset. The net book value is the difference between the cost of the asset and the accumulated depreciation. The formula for NBV is as follows,

NBV = Cost - Accumulated depreciation

NBV = 223162 - 200846

NBV = 22316

If the sales proceeds are more than the NBV of the asset, the asset is sold on gain and vice versa.

Loss on disposal = 20084 - 22316 = - $2232 or$2232 loss

8 0

3 years ago

During May, 10,000 packages of chicken sausages were produced, for which 52,000 pounds of meat and 15,000 machine hours were use

Andre45 [30]

Answer:

50,000 pounds of chicken meat

Explanation:

If 10,000 packages of chicken sausages were produced, the estimated amount of chicken meat and machine hours would equal:

chicken meat = 10,000 packages times 5 pounds per package = 50,000 pounds of chicken meat
machine hours = 10,000 packages times 2 hours per package = 20,000 machine hours

8 0

3 years ago

Chapman Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $576,0

DIA [1.3K]

Answer:

The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations

Explanation:

The General rule is to appraise the investment based on various appraisal techniques.

A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.

The Net Present Value (NPV) approach will be the best method to proceed with.

The NPV approach typically falls under the following decision tree:

a. If NPV is negative (Reject the proposal)

b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)

c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR

Kindly refer to the attached for detailed workings

6 0

3 years ago

Farmer parker will maximize profits loading... by producing nothing bushels of wheat (enter a whole number). suppose that the

Temka [501]

Answer:

1. profit is maximized when Q = 6 bushels, from table

2. When MC increases by 0.5 at each level of quantity produced, setting P = MC for profit maximization

at output level = 6, P = 4, MC = 3.5

Q = 6 bushels

3. Profit = 24-15-0.5*6 = 6.00

6 0

3 years ago

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