1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Otrada [13]
3 years ago
14

Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $45

0,000 per year. Last year, Steve sold 1,200 bikes. Steve’s average variable cost was __________ per bike.
Business
2 answers:
ahrayia [7]3 years ago
6 0

Divide variable costs by output. Therefore, it would be 750000 divided 1200, giving you $625.

Dahasolnce [82]3 years ago
4 0

Variable cost means a cost that changes with the change in the output. The total variable cost changes with the change in the number of units produced but the variable cost remains fixed per unit.

Steve Total Variable Cost = $750,000

Steve's average Variable Cost = Total Variable Cost ÷ Number of Bikes Sold

Steve's Average Variable Cost = $750,000 ÷ 1200

<u>Steve's Average Variable Cost = $ 625 per bike</u>

You might be interested in
Given the same purchase and sales data, the three major costing methods for inventory will result in three different amounts for
sdas [7]

Answer:

The correct answer is False.

Explanation:

This statement is false, because as much as the sales prices, the quantities sold and the income received from sales never change. For this reason it is considered that the cost of goods sold will always be different. It was taken into account that the price of the inventory increased.

4 0
2 years ago
Read 2 more answers
The opportunity cost of​ tesla's investment in a new battery factory in nevada is
Alex787 [66]
I believe the answer is: D. <span>what the company considered to be the best-foregone option to the factory.
The creation of new type of battery would cost Tesla a huge amount of capital that would definitely impact the amount of their profit for several operating years. The difference in profit between prior and after new battery would be the opportunity cost that must be taken by Tesla.</span>
5 0
3 years ago
Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 560,000 units are e
andrew11 [14]

Answer:

d. $11.11 per unit

Explanation:

Plant wide overhead rate = Total manufacturing cotsts / Total direct labor hours

Plant wide overhead rate = ($2,530,000 + $900,000) / (168,000+110,000)

Plant wide overhead rate = $3,430,000 / 278,000

Plant wide overhead rate = $12.34 per DLH

Overhead cost per unit = Plant wide overhead rate * Direct hours per unit

Overhead cost per unit = $12.34 * 0.90

Overhead cost per unit = $11.11 per unit

7 0
3 years ago
Carol works for firm x. she takes long breaks and often daydreams when she is being paid to work. carol is
lakkis [162]
The answer is A because she could be watching people while daydreaming
6 0
3 years ago
What is the reason it's better to underestimate your income instead of overestimating when creating your budget?
Alik [6]

Answer:

  • <em>Underestimating your income is a conservative and healthy measure that can avoid financial problems.</em>

Explanation:

<em>Underestimating</em> your <em>income</em> is a conservative and healthy measure, such as it is overestimating your expenses.

Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.

There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.

But, if you if all is smooth you will have in a happy situation, you will have a surplus which can use for savings, for an important purchase, or for vacations.

It is better to be cautious than to regret later!

6 0
3 years ago
Other questions:
  • Your sister just deposited $13,000 into an investment account. She believes that she will earn an annual return of 10.3 percent
    11·1 answer
  • The epa tries to balance protecting business interests with protecting
    10·2 answers
  • What are some of the reasons businesses fail?
    6·1 answer
  • Which of the following is an example of an environmental sustainability practice? a. Making sound financial plans to ensure long
    5·1 answer
  • A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the f
    13·1 answer
  • New growth theoryLOADING... suggests that the accumulation of knowledge capital can be slowed because knowledge is both nonrival
    9·1 answer
  • The cash basis of accounting A : is the method required by generally accepted accounting principles. B : follows the revenue rec
    9·1 answer
  • Bakery a sells bread for $2 per loaf that costs $0.50 per loaf to make. bakery a gives a 70% discount for its bread at the end o
    11·1 answer
  • Greg, a project manager in your company, is falling behind on the project schedule. He has elected to crash the project. What is
    7·1 answer
  • FunnyTime Products uses humor in its ads to communicate with its fun-loving consumers. What type of ads does FunnyTime Products
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!