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stiv31 [10]
3 years ago
9

A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable c

ost of $17.50 per unit for the first 50 units and then $35.00 per unit for all successive units.
Does price exceed average variable cost for the first 50 units? (Click to select)YesNo

What is the average variable cost for the first 50 units?

Instructions: Round your answer above to two decimal places.

Does price exceed average variable cost for the first 100 units? (Click to select)NoYes

What is the average variable cost for the first 100 units?

Instructions: Round your answers to two decimal places.

What is the marginal cost per unit for the first 50 units? $ per unit for the first 50 units.

What is the marginal cost for units 51 and higher? $ per unit for subsequent units.

For each of the first 50 units, does MR exceed MC? (Click to select)NoYes

For the units 51 and higher does MR exceed MC? (Click to select)YesNo

What output level will yield the largest possible profit for this purely competitive firm?

Producing ________-- units will maximize profit
Business
1 answer:
Alinara [238K]3 years ago
4 0

Answer:

Yes $30 agsinst $19.50

The variable cost for the first 50 untis is $17.50

Yes $30 against $27.25

average variable cost for the first 100 units $26.25

Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue

from 51 units and subsequent untis: 35 which is higher than marginal revenue

It will produce 50 units achieving $525 of profit

Explanation:

$100 fixed cost /50 units + 17.50 = 19.50 average cost

selling price: $30

100 fixed cost + 17.50 x 50 + 35 x 50 = 2725

total cost 2,725 / 100 units = 27.25 unit average cost

selling price $30

($17.50 x 50 + $35 x 50)/100 = 26.25

After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:

50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit

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A year ago, you purchased 300 shares of Stellar Wood Products, Inc. stock at a price of $8.62 per share. The stock pays an annua
Galina-37 [17]

Answer:

D. -$1,116

Explanation:

Total amount of purchase = number of shares * price per share

= 300 * $8.62

= $2,586

Total dividends received = number of shares * dividend per share

= 300* $0.10

= $30

Total proceeds from sale of shares = number of shares sold  * price per share

= 300* $4.80

= $1,440

Total dollar return = (Total proceeds from sale of shares + Total dividends received - amount of purchase)

= $1,440 + $30 - $2,586

= -1,116

3 0
3 years ago
Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p
frutty [35]

Answer:

10.12%

Explanation:

The computation of the WACC is shown below:

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 6% × (1 - 0.21) × 0.35 ÷ 1.35 + 12% × 1 ÷ 1.35

= 1.23% + 8.89%

= 10.12%

We simply multiplied the capital structure with each of its weight so that the WACC could come and the same is to be considered

7 0
3 years ago
Golden Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require high
drek231 [11]

Answer:

A. The company paid a higher cost for the direct materials than allowed by the standards.

Explanation:

The following is a logical explanation for this variance:

Since, the standard quantity of raw materials to be used is 22 pounds x 500 units = 11000 pounds. The actual usage is 9500 pounds ony. Hence, variance in direct material price variance can be only due to higher cost of direct material purchased.

7 0
3 years ago
One year ago, you purchased $6,000 worth of a mutual fund at an offering price of $38.10 a share. Today, the fund distributed $0
dalvyx [7]

Answer:

a. 7.48%

Explanation:

Number of shares = $ 6,000 / $ 38.10

Number of shares = 157.48

Rate of return = [Number of shares * (Short term gans + Long term gains + ((1 - Front end load) * (Current offering price)) - Purchase price] / Purchase price

Rate of return = [157.48 * ($0.20 + $1.04 + ((1 - 0.05 ) * $41.80)) - $6,000] / $6,000

Rate of return = [157.48 * ($0.20 + $1.04 + (0.95 * $41.80)) - $6,000] / $6,000

Rate of return = [157.48 * ($1.24 + $39.71) - $6,000] / $6,000

Rate of return = $448.806 / $6,000

Rate of return = 0.074801

Rate of return = 7.48%

6 0
3 years ago
Compute the continuously compounded interest rate for 228 days where the ACT/365 interest rate is 2.92%. Give your answer to fou
Nikitich [7]

Answer:

The answer is 1.8407.

Explanation:

To calculate interest rate for 228 days we will first calculate daily rate and than put value in compounding rate formula.

Daily interest rate = 2.92%/365 = 0.008 %

Interest rate 228 = (1+I%)^n -1

Interest rate 228 = (1+0.008%)^228-1  = 1.8407%

3 0
3 years ago
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