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Anit [1.1K]
4 years ago
10

Bonita Industries used high-low data from June and July to determine its variable cost of $12 per unit. Additional information f

ollows: Month Units produced Total costs June 2200 $32400 July 600 13200 If Bonita’s produces 1300 units in August, how much is its total cost expected to be?
Business
1 answer:
ladessa [460]4 years ago
4 0

Answer:

Total cost= $25,200

Explanation:

Giving the following information:

Unitary variable cost= $12

Units produced - total cost:

June: 2,200 - $32,400

July: 600 - $13,200

August= 1,600 units

First, we need to determine the fixed costs:

Fixed costs= total cost - total variable cost

June= 32,400 - 12*2,200= $6,000

July= 13,200 - 12*600= $6,000

Now, we can calculate the total cost for 1,600 units,

Total cost= 6,000 + 12*1,600= $25,200

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Answer:

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                        C = Ca = a+bYd

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That is the equilibrium GDP is Y = (a + I +G + X)/(1 - 0.8b)

Explanation:

Equilibrium GDP is also called equilibrium level of national income. This is the condition that must prevail for planned expenditure to exactly equals planned income or output in an economy. this is represented by the general equation of Y  =  C+ I+ G+ X-M but for the purpose of this question M which represent import was not introduced.

The consumption function of C = Ca = a+bYd is a Keynesian consumption function, it shows aggregate planned expenditure by household

Ig represents investment expenditure of the firm

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G represents government expenditure on goods and services

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