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2 years ago

If marginal cost is greater than average total cost, then

Business

1 answer:

Ber [7]2 years ago

5 0

Answer:

d. the average total cost is increasing.

Explanation:

The average total cost if the average cost of producing one unit, where as the marginal cost if the additional cost of producing an additional unit, so when the marginal cost is greater than the average total cost, it means that producing new units will drive the average total cost up because the cost to produce one more unit is more than the average total cost. This means that the new unit being produced costs more than the previous units produced if we take an average. We can also prove this mathematically.

If a factory produces 100 units, at a total cost of 10,000.

The average total cost if 10,000/100=100

If the marginal cost is greater than the average cost for example it is 150 then the total cost is 10,000+150=10,150

Also the average total cost will be 10,150/101=100.49

This shows that when the marginal cost is greater than average total cost the average total cost is increasing.

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This year, Callie and Neil formed the equally owned CN partnership. Callie contributed $300,000 of cash and Neil contributed rea

Nitella [24]

Answer:

1. a. Callie =$375,000

b. Neil $25,000

2. Equal

Explanation:

The computation of given question is shown below:-

1. Adjusted Callie contribution = $300,000

Neil contribution = $100,000 × 50%

= $75,000

Callie basis in partnership interest after the formation = $300,000 + $75,000

= $375,000

Adjusted Neil contribution = $100,000

Neil contribution = $100,000 × 50%

= $75,000

Neil basis in partnership interest after the formation = $375,000 - $75,000

= $25,000

2. Equal or in Profit-Loss Sharing Ratio

In the profit - loss sharing ratio or equal when debt is allocated between the two partners

6 0

3 years ago

Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000. The company estimated that the machine has a s

Ugo [173]

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,700

Useful life= 6

First, we need to calculate the annual depreciation using the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (66,000 - 5,700) / 6= 10,050

2017:

Annual depreciation= (10,050/12)*3= $2,512.5

2018:

Annual depreciation= $10,050

8 0

3 years ago

. A car accident occurs at an intersection outside of a physician’s office during normal office/business hours. Do the physician

lina2011 [118]

Search it up dudeeeee :)

3 0

3 years ago

Suppose you invest in 100 shares of Harley-Davidson at $60 per share and 300 shares of Yahoo at $25 per share. Over the next yea

Alexxx [7]

Answer:

(a) $0 (b) 0% (c) 50% (d) -40% (e) 0.444 and 0.556 (f) -0.05

Explanation:

(a) Profit (in $) = (increase in price per share of Harley-Davidson * number of Harley-Davidson shares held) - (decrease in price per share of Yahoo * number of Yahoo shares held)

= $90 - $60 = $30 increase in Harley Davidson and $25 - $15 =$10 decrease in Yahoo

= ($30*100) - ($10*300) = $0

(b) return on portfolio = return/capital invested * 100 = $0/($60 * 100 + $25 * 300) = $0/$13500 = 0%

(d) return on investment in Yahoo = return/capital invested in Yahoo * 100 = -$10*300/$25*300 = -$3000/$7500 = - 40% (negative rate of return)

(e) Weighting at the beginning of year (in decimals)

Harley Davidson = $60 * 100 units/ total invested ($60 * 100 + $25 * 300)

= $6000/$13500 = 0.444

Yahoo = $25 * 300 units/ total invested

= $7500/$13500 = 0.556

(f) realized returns (as a decimal) of the portfolio = 0.444*50% + 0.556*-40%

= -0.0493728

= - 0.05 (to decimal places)

3 0

2 years ago

In contrast to a real-time system, in a batch processing system a. relatively more resources are required b. there is a lag betw

professor190 [17]

Answer:

B) there is a lag between the time when the economic event occurs and the financial records are updated

Explanation:

Batch processing systems collect data together in a batch before the execution of the process, e.g. billing, generating reports. While real time processing happens immediately after the data has been entered, e.g. an ATM.

Batch systems usually postpone the data processing while real time processing is carried out without delay.

6 0

2 years ago