Answer:
c. Marginal cost is $8, and average total cost is $5.
Explanation:
Marginal cost of a firm is the cost difference in producing an additional unit of a firm's output. The extra amount result from the an extra unit of output produced. It is derived by calculating the difference between the total cost and dividing it by the difference in output i.e change in TC/ change in output
In the question, The change in TC is calculated as $5008 - $5000 = $8 and the change in quantity is 1001 - 1000 = 1
Therefore 8/ 1= 8 marginal cost is = $8
on the other hand, Average total cost is the cost per unit of output i.e the cost of a commodity out of all the products produced by a firm. it is calculated by dividing the total cost by the total number of output
In the question above, The total cost is $5,000 and the Total output is 1,000
$5,000/ 1000 =$ 5
similarly, when the total output increased to 1001 and the total cost rises to $5008 the Average cost still remains at$ 5
prove: 5008/ 1001 = 5.0002 which is approximately equal to 5.
therefore the correct answer is c. Marginal cost is $8, and average total cost is $5.
<u>Answer:</u> D. 60,000 shares at $5 per share
<u>Explanation:</u>
The company has 15,000 shares and offers to split the stock four-for-one. It means that the there will be four times the number of shares but the total value of the shares, before and after the split, would remain the same.
The total value of shares = $15,000 x 20 = $300,000
Since the stock split is 4-for-1, the number of shares would be = 15000 x 4
= 60,000 shares
Therefore the total value of shares divided by the number of shares will give us the par value of the shares:
300,000 / 60,000 = $5
Answer:
C) underapplied overhead of $5,000
Explanation:
If the Actual Overheads > Applied Overheads, we say overheads are under-applied.
and
If the Applied Overheads < Actual Overheads, we say overheads are over-applied.
where,
Applied Manufacturing Overheads = Predetermined Overhead Rate × Actual Hour
and
Predetermined Overhead Rate = Estimated Overhead ÷ Estimated Total Hours
= $100,000 ÷ 10,000
= $10.00 per direct labor hour
Thus,
Applied Manufacturing Overheads = $10.00 x 10,500 direct labor hours
= $105,000
therefore,
Actual Manufacturing Overheads = $110,000
Applied Manufacturing Overheads = $105,000
Overheads under-applied = $5,000 ( $110,000 - $105,000)
When Wal-Mart started purchasing from the manufactures of products directly in 1980 it helped to grow the business into a major success. The three activities that helped build the success was more cost effective inventory management, distribution practices by having their own fleet of trucks, and supply chain efficiency which helped to save time.
Answer: Option (D)
Explanation:
The individual has shown significant alteration in his emotional attitude, he has been going through mood swings. Therefore his immediate response is empathy , anger and sadness. This when analyzed by his care team , they would most likely attribute such changes to ischemic alteration in elements of the individual's limbic system. Since the limbic system controls the rudimentary emotions such as fear, anger and pleasure.
