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elena55 [62]
3 years ago
9

The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting th

e space in the mall is $250 per day. Number of workers Daily output (cookies) 1 200 2 400 3 600 4 700 The daily fixed costs of production are Choose one: A. $160 . B. $330 . C. $250 . D. $80 . E. $0. The labor cost per day of hiring two workers is $ . The total cost per day when three workers are hired is $ . The marginal product per day of the fourth worker is cookies.
Business
1 answer:
ivanzaharov [21]3 years ago
4 0

Answer: C. $250

Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.

Labour cost per day of hiring two workers = $80 x 2 = $160

Total cost per day when three

workers are hires. This includes both the fixed cost and labour cost

Total Cost = fixed cost + labor cost

= $250 + $80 x 3

= $490.

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Identify whether each of the following costs should be classified as product costs or period costs. (a) Manufacturing overhead.
djyliett [7]

Answer:

Product Costs: (a), (e) and (f).

Period Costs: (b), (c) and (d).

Explanation:

The difference between the two types of costs is that product costs are recorded within the inventory asset, since they affect the products. While the period costs are expenses that are recorded in the income statement without affecting inventory costs.

The product costs (Inventory Costs) are:

(a) Manufacturing overhead

(e) Direct labor

(f) Direct materials

The costs of the period (Expenses) are:

(b) Selling expenses.

(c) Administrative expenses

(d) Advertising expenses

Hope this helps!

8 0
3 years ago
An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply
sergey [27]

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

8 0
3 years ago
The term "additional funds needed (AFN)" is generally defined as follows:
Ganezh [65]

Answer: Option D

                   

Explanation: In simple words, additional funds refers to the funds that a company needs for financing a specific project or other such purposes. These funds are usually procured when there are no internal funds left in the company like retained earnings etc.

Thus, these funds are procured from external sources like issuing debt securities or by offering additional equity etc.

6 0
4 years ago
On march 1, year 1, roland doe bought 200 shares of gummit stock at $40 per share. on april 1, year 2, roland sold short (sold w
laiz [17]

Answer:

1,000 long term capital gain

Explanation:

8 0
4 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
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