Insurance products are viable and relevant to individuals because people worry about their medical expenses becoming too high for them to be able to afford. Businesses, on the other hand, need to protect their important investments and assets in order to preserve the business.<span />
Answer:
A) where the firm's marginal revenue equals its marginal cost.
B) average total cost per unit should equal the marginal cost per unit.
C) at their highest level.
Explanation:
Profit maximizing levels where marginal revenue = marginal cost, is applicable to every type of company regardless in what type of market they operate, e.g. perfect competition, monopoly, monopolistic competition, etc.
The equation becomes 7-10 which equals -3
Answer and Explanation:
1. Unit Cost for June = Total Cost/ Equivalent Units of output
= 174,000/75,000
= $2.32 per unit
2. Cost of Ending Work in Progress = Cost per unit * Ending WIP
= 2.32 * 21,600
= $50,112
Cost of goods transferred out = Cost per unit * Units completed
= 2.32 * 53,400
= $123,888
3. By using the Weighted Average method for calculating cost, May costs will also be reflected in the cost figures. In May, the measures to reduce cost had not been implemented so the costs were still higher than anticipated for June. They will therefore pull the June costs upward such that the cost reductions will not show up in June.
This can be overcome by using a method that would reflect the cost of June alone.