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KatRina [158]
3 years ago
14

A sofa manufacturer can produce 10 sofas for $2,500 and 12 sofas for $2,760. What is the difference between the average cost per

sofa for 12 sofas and the marginal cost of the 12th sofa
Business
1 answer:
strojnjashka [21]3 years ago
8 0

Answer:100

Explanation:

The following information can be gotten from the question:

Cost for 10 sofas = $2500

Cost for 12 sofas = $2760.

Average Cost = Total Cost/Quantity

2500 / 10 = $250 and

$2760 / 12 = $230

The average cost for 12 sofas will be $230

Marginal cost is the change in total cost divided by the change in quantity. This will be:

= ( 2760 - 2500 )/( 12 - 10 )

= 260/2

= 130

The difference between the average cost per sofa for 12 sofas and the marginal cost of the 12th sofa will be:

=230 - 130

= 100

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Roberson Corporation manufactured 30,000 ice chests during September. The overhead cost-allocation base is $11.25 per machine-ho
Paha777 [63]

Answer:

$165,000

Explanation:

Data provided in the question;

variable overhead data

                                                                           Actual                   Budgeted

Production                                                       30,000 units          24,000 units

Machine-hours                                                15,000 hours         10,800 hours

Variable overhead cost per machine-hour        $11.00                   $11.25

Now,

The actual variable overhead cost will be

= Actual machine hour × Actual Variable overhead cost per machine-hour

= 15,000 × $11.00

= $165,000

Hence,

The actual variable overhead cost for the Roberson Corporation is $165,000

5 0
3 years ago
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can
mash [69]

Answer:

Hence, the minimum transfer price = $2

Explanation:

Transfer price is the price at which goods are exchange between branches or divisions of the same group

Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows

Minimum transfer price = Variable cost

It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division  is currently having excess capacity- it can meets all demands both external and internal.

<em>Therefore, any offering price equal to or above the variable manufacturing cost  of $2 would be acceptable and optimize the group profit</em>.

Hence, the minimum transfer price = $2

8 0
3 years ago
What is micro economy
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5 0
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Answer:

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Explanation:

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3 0
4 years ago
The Jack Frost Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 11 comma 000 for ten
Svet_ta [14]

Answer:

a. $11,000

b. $2,200

Explanation:

According to the cash basis accounting, the cash is recorded when actual cash is received

But as per the accrual basis of accounting, the revenue is recorded when it is realized or earned whether cash is received or not                      

So,

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= $2,200

8 0
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