Answer:
The price Galla should charge is $75
Explanation:
Solution
Now
The total cost = variable product cost + variable administrative cost + fixed overhead + fixed administrative
= ($23 * 6,420) + ($25 * 6,420) + $46,500 + $30,540
= $147,660 + $160,500 + $46,500 + $30,540
= $385,200
Thus,
The total cost per unit = Total cost / units
= $385,200 / 6,420 units
= $60
Hence
The selling price should charge = Cost per unit * 1.25
= $60 * 1.25
= $75
In long-run, the equilibrium in the competitive market can be determined at the level where Price (P) = Minimum Average Cost (AC) = Marginal Cost (MC) = Marginal Revenue (MR).
In the competitive market with similar firms in the industry every consumer wants to buy from any seller in the market. Subsequently , in the long run, the equilibrium in such industry will happen at a level where "the price of the product (P) is same as the marginal cost (MC) and the marginal revenue (MR) of the product".
The industry can be in equilibrium in the long run when all firms receive standard profits. There is no reason for firms to quit the industry or for new firms to make an entry. Such an equilibrium position is achieved when the long-run price for the industry is set up by the equality of total demand and supply of the industry. The long-run equilibrium of the industry is where the long-run price are set up by the crossing of the demand curve and the supply curve at a point .
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Answer:
Present value of zero coupon bond = $283
Explanation:
Provided that zero coupon bonds are to be issued.
In zero coupon bonds issue price is less than face value to meet the needs.
Interest rate = 13%
Duration = 10 years, Paid semiannually.
Thus periods = 20
Interest rate =
Therefore, Present value factor @6.5% for 20 periods = 0.283
Therefore, Value of bond today = $1,000 0.283 = $283
Answer:
The total cost of the units completed and transferred out of the department was: $342,200.
Explanation:
First calculate the Total Cost per Equivalent unit.
Total Cost per Equivalent unit :
Materials $2.10
Conversion $3.80
Total $5.90
Total cost of the units completed and transferred out = Units completed and transferred out × Total Cost per Equivalent unit
= 58,000 units × $5.90
= $342,200
Answer:
average tax rate
Explanation:
Based on these two tax rates I would say that the more important of the two is average tax rate. This is because the average tax rate is the total taxes you have paid divided by your total income. This therefore will always be less than the marginal tax rate because the this tax rate is divided by tax brackets which since the average tax rate is specific it will never reach the limit of the tax bracket making it less than the marginal tax rate.