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
Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th
Nina [5.8K]

Answer:

5.925%

Explanation:

For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment

Given that,  

Present value = $1,050

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8%  = $80

NPER = 20 year - 1 year = 19 year

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 7.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.50% × ( 1 - 0.21)

= 5.925%

3 0
3 years ago
The parenting style which takes the concerns of all family members into account when making decisions is __________. permissive
seraphim [82]
The answer is DEMOCRATIC.   :)
4 0
3 years ago
Determine the missing amounts. Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio 1. $900
Pie

Answer:

(a) = $468

(b) = 52%

(c) = $144

(d) = 28%

(e) = $1150

(f) = $920

Explanation:

    selling price   variable cost    contribution   margin contribution ratio

1.     $900             $432                  (a) $                          (b)%

2.    $200            $ (c)                     $56                            (d)%

3.  $ (e)               $(f)                       $230                          20%

contribution = selling price - variable costs

Margin contribution ratio = contribution / sales

Variable cost = selling price - contribution

Selling price = contribution / margin contribution ratio

5 0
3 years ago
A conglomerate is ________ a giant corporation composed of many smaller corporations. a corporation in the manufacturing sector.
alexdok [17]

Answer:

a giant corporation composed of many smaller corporations.

Explanation:

This option is not 100% right, but the other options were completely wrong. A conglomerate is a corporation that operates in totally different and unrelated industries. For example, a conglomerate can operate in the energy sector, financial services, education services, cruise lines, and agriculture. No two industries are even related to one another, and that is what operates a conglomerate from a normal corporation. E.g. Samsung is a conglomerate because it operates an electronics business, manufactures cars, builds ships, operates funeral homes, etc.

4 0
3 years ago
Bali Inc. reported $605,800 net income before tax on this year’s financial statements prepared in accordance with GAAP. The co
kodGreya [7K]

Answer:

$669,950

Explanation:

Computation of taxable income

Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600

Book gain on equipment sale$(23,000)

(53,000-27,400)

Tax gain on equipment sale38,000 15,000

(23,000-38,000=15,000)

Nondeductible loss on sale to related party 23,550

(75,000-51,450)

Taxable income$669,950

(605,800+25,600+15,000+23,550)

Therefore the taxable income will be $669,950

4 0
3 years ago
Other questions:
  • Tanyika needs a loan to buy furniture for her house. she can get a loan from all the following except:
    15·1 answer
  • Harvey automobiles uses a standard part in the manufacture of several of its trucks. the cost of producing​ 90,000 parts is​ $13
    11·1 answer
  • According to _____, location-specific advantages are of considerable importance in explaining both the rationale for and the dir
    5·1 answer
  • Tailoring movies slightly to appeal to different markets, such as editing Iron Man 3 for China, best reflects which kind of inte
    14·1 answer
  • The cost of capital: a. is the price of borrowing money, which is the rate of return that borrowers must pay investors. b. tends
    8·1 answer
  • Gersick's model for team development rejects the standard model in favor of something called: The golden rule. Directed chaos. F
    6·1 answer
  • _____ goals are set by and for an organization's top management. a. Operational b. Diversification c. Strategic
    13·1 answer
  • Last year's sales revenues at Coffee Connection were $27,000, and the cost
    6·2 answers
  • G Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:
    9·1 answer
  • Sifa Company is selling for Shs60.00 per share today. In one year, Sifa Company will be selling for Shs58.00 per share, and the
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!