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3 years ago

What condition is being met when goods are being produced and sold at the lowest possible average cost?

1 answer:

6 0

The condition that is being met is PRODUCTIVE EFFICIENCY. Productive efficiency refers to a situation in which production is carried out without waste. In this situation, when the average cost of production is reduce to the barest minimum, the economy will be operating on the production possibility frontier.

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Production records show that there were 440 units in the beginning inventory, 30% complete, 1,440 units started, and 1,600 units

Nimfa-mama [501]

Answer and Explanation:

The computation is shown below:

a. The number of units processed is

= Beginning work in process units + completed and started units - transferred out units

= 440 units + 1,440 units - 1,600 units

= 280 units

b. The material cost per unit is

= Total cost ÷ equivalent units

where,

Total cost is

= Opening work in process + material cost

= $2,220 + $6,610

= $8,830

And, the equivalent units is

= Units transferred out + ending work in process

= 1,600 + 280

= 1,880

So, the material cost per unit is

= $8,830 ÷ 1,880 units

= $4.70

c. The conversion cost per unit is

= Total cost ÷ equivalent units

where,

Total cost is

= Opening work in process + labor cost + overhead cost

= $1,720 + $4,800 + $1,300

= $7,820

And, the equivalent units is

= Units transferred out + ending work in process × completion percentage

= 1,600 + 280 × 40%

= 1,712

So, the material cost per unit is

= $7,820 ÷ 1,712 units

= $4.57

8 0

3 years ago

An investment offers $6,400 per year for 15 years, with the first payment occurring one year from now. If the required return is

yawa3891 [41]

Answer:

PV= $62,158.4

Explanation:

Giving the following information:

Annual payment= $6,400

Number of periods= 15 years

Interest rate= 6% = 0.06

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {6,400*[(1.06^15) - 1]} / 0.06

FV= $148,966.21

Now, the present value:

PV= FV/(1+i)^n

PV= 148,966.21 / (1.06^15)

PV= $62,158.4

4 0

3 years ago

What is the expected value when a $1 lottery ticket is bought in which the purchaser wins exactly $10 million if the ticket cont

Nadusha1986 [10]

We expect to lose $0.37 per lottery ticket

Explanation:

six winning numbers from = { 1, 2, 3, ....., 50}

So, the probability of winning:

$P(win) = \frac{ no of favorable outcomes}{no of possible outcomes}$

$P(win) = \frac{1}{^5^0C_6} \\\\P (win) = \frac{6! X (50 - 6)!}{50!} \\\\P(win) = \frac{6! X 44!}{50!} \\\\P(win) = \frac{1}{15,890,700}$

The probability of losing would be:

P(loss) = 1 - P(win)

$P(loss) = 1 - \frac{1}{15,890,700} \\\\P(loss) = \frac{15,890,699}{15,890,700}$

According to the question,

When we win, then we gain $10 million and lose the cost of the lottery ticket.

So,

$10,000,000 - 1 = $9,999,999

When we lose, then we lose the cost of the lottery ticket = $1

The expected value is the sum of the product of each possibility x with its probability P(x):

E(x) = ∑ xP(x)

$= 9,999,999 X \frac{1}{15,890,700} + ( -1 ) X \frac{15,890,699}{15,890,700} \\\\=- \frac{5,890,700}{15,890,700} \\\\= - \frac{58,907}{158,907} \\\\= - 0.37$

Thus, we expect to lose $0.37 per lottery ticket

7 0

3 years ago

In most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed

Jlenok [28]

Answer: disaffirm

Explanation:

most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed contract), the minor may disaffirm the contract.

It should be noted that a contract that is signed by a minor unless in some rare exceptions is normally void and therefore, the minor can disaffirm the contract.

8 0

3 years ago

FedEx is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo aircraft, the c

andriy [413]

Answer:

Journal entries

Explanation:

Before passing the journal entries, first we have to determine the book value of truck which is

= Cost of delivery truck - accumulated depreciation

= $56,000 - $41,300

= $14,700

Now the journal entries are as follows

a. Cash Dr $14,700

Accumulate depreciation $41,300

To Delivery truck $56,000

(Being the disposal of the truck is recorded)

b) Cash Dr $16,400

Accumulate depreciation $41,300

To Delivery truck $56,000

To Gain on sale $1,700

(Being the disposal of the truck is recorded)

c) Cash Dr $12,900

Accumulate depreciation $41,300

Loss on sale $1,800

To Delivery truck $56,000

(Being the disposal of the truck is recorded)

4 0

3 years ago

What condition is being met when goods are being produced and sold at the lowest possible average cost​?

What condition is being met when goods are being produced and sold at the lowest possible average cost?