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2 years ago

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:_________

1 answer:

5 0

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost economic profits must be zero.

Profit-maximizing is the process of determining the most effective way to maximize earnings, either in the short or long term. It primarily focuses on identifying the price and output level that generates the greatest profit. It is a crucial premise that supported the development of numerous economic theories, including the pricing and production theories.

Profit maximizing is the sole goal of organizations, and conventional theories are built around this idea. It is also viewed as the organization's most rational and fruitful business goal. It aids in determining corporate organization behavior and the impact of various economic conditions.

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Rank the following items from most liquid to least liquid:

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3 years ago

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True or false: apple computer, inc. collected information on the age of their customers. the youngest customer was 12 and the ol

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3 years ago

On January 2, 2017, Kellogg Corporation acquired equipment for$800,000. The estimated life of the equipment is 5 years or 80,

lesya692 [45]

Answer:

Book value of the asset = $484,000

Explanation:

Given:

Equipment cost = $800,000

Residual value = $10,000

Computation:

Depreciation = (Equipment cost - Residual value) / Life

Depreciation = ($800,000 - $ 10,000) / 5

Depreciation = $ 158,000 per year

Depreciation for 2 year =$ 158,000 x 2

Depreciation for 2 year = $316,000

Book value of the asset = Equipment cost - Depreciation for 2 year

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3 years ago

A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the

Irina-Kira [14]

Answer:

A. Lowest Total Cost:

A. 315,550 or more

B. Lowest total cost of annual volume of 120 boats

C. C

Explanation:

The lowest total cost among the three alternatives is b.

If the company goes for new location it will have to incur fixed cost of $270,000 and variable cost per boat will be $600.

If the company Subcontracts then Total cost per boat is $2,620

If a company goes for expanding existing facility then it will incur fixed cost of $57,000 and variable cost will be $1,030 per boat.

If company produces 315,000 or more boats then it will have lowest possible cost for the boat.

For an output of 120 bots the best possible alternative is option C. The fixed cost will be $475 per boat ($57,000 / 120 boats)

The total cost will be $1,505 ($475 + $1,030)

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3 years ago

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I

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Answer:

cost of goods manufactured schedule

Raw Materials ($9,180 + $55,020 - $17,480) $46,720

Direct Labor $51,740

Manufacturing overheads :

indirect labor $6,510

factory insurance $4,700

machinery depreciation $4,380

machinery repairs $1,990

factory utilities $3,740

miscellaneous factory costs $1,980

Add Opening Work In Process $5,670

Less Closing Work In Process ($7,610)

Cost of goods manufactured $119,800

Explanation:

Cost of goods manufactured schedule shows a summary of results (cost) obtained from manufacturing activity during the production period.

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3 years ago