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ElenaW [278]
3 years ago
14

Chuck Diesel Burger is a food truck in Houston, Texas. Imagine that Chuck Diesel Burger’s minimum average total cost (ATC) is $3

.75 and that its minimum average variable cost (AVC) is $2.50. Assume there are no barriers to entry into or exit from the food-truck market. Chuck Diesel Burger will suffer a loss but still produce if the price is equal to:
$4.00.$3.75.$3.00.$2.50.$2.00.
Business
1 answer:
Trava [24]3 years ago
5 0

Answer:

The answer is: $3.00

Explanation:

In order for Chuck Diesel Burger to make a profit it must sell its product at ˃$3.75.

If it sells its product at $3.75 it will break even (costs = revenue).

If its price is <3.75 but ˃$2.50 it will lose money but still produce, since its revenue is ˃ than its variable cost.

Any price ≤$2.50 would make it impossible for Chuck Diesel Burger to continue production since its revenue is < variable production costs.

You might be interested in
Numeric Company uses the periodic inventory method and had no beginning inventory. The company purchased 7 units of inventory at
BigorU [14]

Answer:

$115

Explanation:

The computation of the cost of the ending inventory is shown below:

Total units purchased

= 7 units + 5 units + 6 units

= 18 units

And, the total cost is

= 7 units × $8 + 5 units × $10 per unit + 6 units × $11 per unit

= $56 + $50 + $66

= $172

And, the closing units inventory units is

= 18 units - 6 units

= 12 units

So, the cost of ending inventory is

= $172 × 12 units ÷ 18 units

= $115

8 0
3 years ago
Which of the following is associated with long chains of command, inefficient use of resources, and excessive attention to proce
Lynna [10]

The answer choice which is associated with long chains of command, inefficient use of resources and excessive attention to procedures and rules is known as:

  • A bureaucracy

<h3>What is Bureaucracy?</h3>

This refers to a complex system which has different layers and requires a chain of command and the proper ways of doing things.

With this in mind, we can see that this is evidenced by the Department of Justice as it has different offices such as the office of the District Attorney, Prosecutor, etc.

Read more about bureaucracy here:
brainly.com/question/905062

8 0
3 years ago
Tyrell Corporation is an electronics company based in the country of Palmia. The company has manufacturing facilities in four ot
Sauron [17]

Answer: global-standardization

Explanation:

Global Standardization strategy simply refers to when standard marketing can be used on the international scene. Global standardization works for different cultures and help in the promotion of a product.

We can see that Tyrell uses sane standards for the countries it's involved in without much differentiation. This is global standardization strategy.

3 0
3 years ago
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate o
Bess [88]

Answer:

r = 0.235 or 23.5%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market return

r = 0.06 + 2.5 * 0.07

r = 0.235 or 23.5%

3 0
3 years ago
A company purchased a weaving machine for $264,970. The machine has a useful life of 8 years and a residual value of $14,500. It
Nutka1998 [239]

Answer:

$37,455

Explanation:

The unit of production method of depreciation charges higher amounts of depreciation seasons of higher output.  The depreciation amount is propositional to the level of production.

The formula applicable in the calculation of the unit of depreciation is as follows.

Depreciation = depreciable value / estimated production value x units produced

For this machine: depreciable value = Asset cost - residual value

Depreciable value =$264,970- $14500 = $250, 470

Estimated units to be produced = 759,000 bolts

Units produced in the second year =113,500

Depreciation for the second year

=  250, 470/ 759,000 x 113,500

=0.33 x 113, 500

= $37,455

6 0
4 years ago
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