Answer:
Total Cost is the cost that is fixed and does not vary directly with the level of output. According to this question typesetting, printing, editing, reviews, promotion, and advertising are fixed costs. The total fixed cost here is $100000.
Total Variable Cost is the costs that vary directly with the level of output. Variable costs are incurred on variable factors. The Total Variable Cost here is $49000.
Marginal cost is addition to the total cost when one more unit of output is produced.
<u>EQUATIONS
</u>
TC = 100000 + 4.9Q
ATC = 100000 + 4.9Q / Q
AVQ = 4.9Q / Q
MC = Change in Total Cost / Change in Quantity = 4.9
<u>GRAPH</u>
Is attached as picture.
Conclusion: The AVC and MC both are equal to 4.9.
Answer: c. $22,000 increase in operating income
Explanation:
Expected decrease in revenues -$280,000
Expected decrease in total variable costs (-$200,000)
Expected decrease in fixed costs <u> (-$102,000)</u>
Expected increase(decrease) in operating income $22,000
<em>Costs are to be deducted from revenues so if the costs are decreasing, the mathematical treatment would be to add the decrease to the revenues which is how the above was calculated. </em>
Answer:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Explanation:
Current liability refers to a short-term liability that is that is due for a payment within a year.
Long-term liability refers to a liability that is that is due for a payment more than one year in the future.
Not a liability - This implies that a liability is no longer a liability the moment a payment is made for it or the moment it is paid.
Based on the above, we therefore have:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Answer:
b.) $140,000
Explanation:
The computation of the segment margin is shown below:
Sales Revenue $500,000
Less: Variable Expenses ($280,000)
Contribution Margin $220,000
Less: Traceable fixed Expenses ($80,000)
Segment margin $140,000
By deducting the variable expense from the sales we can get the contribution margin and after that the fixed cost is deducted from the contribution margin so that the segment margin could come
Answer:
the nominal interest rate differential reflects the expected change in the exchange rate.
Explanation:
The Fisher Effect was developed by Irving Fisher and is shows the relationship between real interest rates, nominal interest rates and inflation.
Fisher's theory states that real interest rate = nominal interest rate - inflation rate.
The International Fisher Effect describes the relationship between two different currencies and how they are proportionally affected by changes in their exchange rate.
