1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
navik [9.2K]
3 years ago
10

Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;

if he produces 20 pairs of shoes per day, his MC is $15. What is his AFC when output is 20 pairs of shoes per day
Business
1 answer:
zalisa [80]3 years ago
3 0

Answer:

Average fixed cost for 20 units = $7

Explanation:

<em>The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.</em>

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

You might be interested in
Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October,
IRISSAK [1]

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance  =$11,060 favorable

direct labor cost variance  = $ 8,640 favorable

<em>Investigate : direct labor efficiency variance</em>

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance  = $35,475 favorable

<em>Investigate : direct labor efficiency variance</em>

Explanation:

October

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (12,100×$16) - (12,100×$15.80)

                                          =$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(12,100 × $15.80) - (6,400×2 ×$15.80)

                                                    =$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance  

                                           = $2,420 (A) + $11,060 (F)

                                           = $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (16,100×$16.05) - (16,100×$15.80)

                                          = $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(16,100 × $15.80) - (6,800×2 ×$15.80)

                                                    =$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

                                          = $4,025 (A) + $ 39,500 (F)

                                           = $35,475 favorable

5 0
3 years ago
The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value w
horsena [70]

Answer:

Change in accounting estimate

Depreciation for 2018: $80,000

Explanation:

A change in accounting estimate occurs when there is new information that surfaces, affecting the initial situation. It can affect the carrying amount of an asset or liability as well as alter the accounting for existing and future assets or liabilities.

The machine has a cost of $800,000. It is depreciated using the straight-line method of depreciation. Hence, the depreciation expense is the same annually throughout the life of the asset.

Annual depreciation = (Cost of asset - salvage value) / number of useful years

Old annual depreciation = ($800,000-0) / 5 = $160,000 per year.

By January 2018, the asset has depreciated for two years. Hence the book value of the asset as at 2018 is the difference between the cost of the asset and the total depreciation expense i.e. $800,000 - (160,000 x 2)

= $480,000.

According to the new depreciation estimate, the asset has a useful life of 8 years. Hence the remaining years is 6 years ( 8 - 2).

The annual depreciation currently is = ($480,000 - 0) / 6 = $80,000

Depreciation expense for 2018 = $80,000

5 0
3 years ago
Your job is to submit a risk diagnosis to the Centers for Medicare &amp; Medicaid Services (CMS) for the purpose of payment. As
kotegsom [21]

Answer:

Report the incident to the compliance department (via compliance hotline or other mechanism)

Explanation:

Since in the question, it is mentioned that the you have to submit a diagnosis risk to CMS with respect to the payment also you need to check whether the data is correct or not

But at the same time you also ignored the process so here you need to report the situation to the compliance department so that the proper actions could be taken

3 0
3 years ago
Consider two neighboring island countries called Felicidad and Bellissima. They each have 4 million labor hours available per mo
Ilia_Sergeevich [38]

Answer:

Bellisima's opportunity cost:  

  • Production of corn per million hours of labor = 12 / 24 = 0.5 pairs of jeans of corn
  • Production of jeans per million hours of labor = 24 / 12 = 2 bushels of corn

Felicidad's opportunity cost:  

  • Production of corn per million hours of labor = 8 / 32 = 0.25 pairs of jeans of corn
  • Production of jeans per million hours of labor = 32 / 8 = 4 bushels of corn

Felicidad has a comparative advantage int he production of corn while Bellisima has a comparative advantage in the production of jeans.

If both countries specialize:

  • Felicidad will produce 128 million bushels of corn.
  • Bellisima will produce 48 million pairs of jeans.

Total production of corn has increased by 24 million bushels.

Total production of jeans has increased by 12 million pairs.

Assuming that Bellisima trades 26 million pairs of jeans and Felicidad exchanges 78 million bushels of corn, then:

  • Felicidad's consumption of jeans will increase by 2 million pairs, while their consumption of corn will increase by 50 million bushels.
  • Bellisima's consumption of jeans will increase by 10 million pairs, while their consumption of corn will increase by 6 million bushels.

8 0
3 years ago
You are trying to decide whether to repaint your house or install vinyl siding. The vinyl siding will cost $13,000 today and wil
emmasim [6.3K]

Answer:

we will find present value of cost over 25 years for both alternatives and would choose one which lowest PV of cost.

Vinyl siding

Cost today (start of year 1) = PV = $13,000

It will last for 25 years

Painting:

Start of year 1:

Cost Incurred today = $3,500

Cost of replacing the boards today (which will last for 25 years) = $2,500

Start of year 6:

Cost Incurred at start of year 6 = $3,500 * (1 + 5%) 5 Annual Inflation rate being 5%

PV of this cost = $3,500 * (1 + 5%) 5 / (1 + 10%) 5

Start of year 11:

Cost Incurred at start of year 11 = $3,500 * (1 + 5%) 10

PV of this cost = $3,500 * (1 + 5%) 10 / (1 + 10%) 10

Start of year 16:

Cost Incurred at start of year 16 = $3,500 * (1 + 5%) 15

PV of this cost = $3,500 * (1 + 5%) 15 / (1 + 10%) 15

Start of year 21:

Cost Incurred at start of year 21 = $3,500 * (1 + 5%) 20

PV of this cost = $3,500 * (1 + 5%) 20 / (1 + 10%) 20

Total PV of all costs = 3500 + 2500 + 3500 * (1 + 5%) 5 / (1 + 10%) 5 + 3500 * (1 + 5%) 10 / (1 + 10%) 10 + 3500 * (1 + 5%) 15 / (1 + 10%) 15 + 3500 * (1 + 5%) 20 / (1 + 10%) 20

= $14,093.94

As such PV of cost Vinyl siding is lower at $13,000 than the PV of cost at $14,093.94 in case of painting.

Thus, you would prefer to install the vinyl siding

4 0
3 years ago
Other questions:
  • Carol’s Clothiers, LLP, sells women’s business clothing designed by the world’s top designers. The company also sells clothing f
    9·1 answer
  • An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve
    10·1 answer
  • A good reason to open a checking account is that
    9·1 answer
  • On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for G
    8·1 answer
  • Human services can best be defined or described as _____.
    6·1 answer
  • You are in a store and see two sheets for sale. Each is labeled "200 Percale." What differences in construction could there be b
    13·1 answer
  • Tulsa Company, (a merchandising Co.) has the following data pertaining to the year ended December 31, 2016: (CPA adapted) Purcha
    5·1 answer
  • Compare and contrast the three categories of project resource.
    14·1 answer
  • 1.2 Assume that there are 600 customers in your target area. The average income per annum per customer amount to R12500. You est
    7·1 answer
  • If an economy maintains a small rate of growth for a long period of time, then the size of the economy?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!