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aksik [14]
3 years ago
13

A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the

7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000. 40.2. In producing the 7,000 staplers, the firm's average total cost was
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer:

<u>Average total cost for 7000 staplers was= $2.43</u>

Explanation:

Total Cost=Fixed Cost +Variable Cost

Fixed Cost =$45000-$28000

Fixed Cost=$27000

Average total Cost= Fixed Cost/ Quantity

=17000/7000

=$2.43

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Given:
<span>stockton company adjusted trial balance december 31
cash 7,530
accounts receivable 2,100
prepaid expenses 700
equipment 13,700
accumulated depreciation 1,100
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notes payable 4,300
common stock 1,000
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dividends 790
fees earned 9,250
wages expense 2,500
rent expense 1,960
utilities expense 775
depreciation expense 250
miscellaneous expense 185

To determine the total assets, we only have to consider the following:
</span>cash                                         7,530 
accounts receivable                 2,100 
prepaid expenses                       700 
equipment                              13,700 
<span>accumulated depreciation   <u>    (1,100) </u>
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NET INCOME: 
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<span>wages expense                         (2,500) </span>
<span>rent expense                             (1,960) </span>
<span>utilities expense                           (775) </span>
<span>depreciation expense                   (250) </span>
<span>miscellaneous expense         <u>       (185)</u>
</span><span>Net Income                                  3,580

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<span>dividends                                      (790) 
</span>Net Income                              <u>     3,580</u>
TOTAL LIABILITIES & SHE      22,930
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