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Mazyrski [523]
3 years ago
6

This month your vendor invoiced $31,500 in testing charges for your production run. The unit cost for testing is twice as much f

or each of the first 400 units per month as compared to each unit over 400. If we shipped 500 units to the vendor this month, find: a) Average cost per unit b) Cost per unit below the price break point c) Marginal cost for the 650th unit
Business
1 answer:
Ket [755]3 years ago
4 0

Answer:

a) Average Cost per unit = $63 / unit

b) Cost per unit below break point = $ 70 / unit

c) Marginal Cost for 650th Unit = $35 / unit

Explanation:

a) To calculate average cost per unit, we simply divide the total cost for the month $31500 by the total units shipped this month 500 units.

Average cost p.u = 31500 / 500 = $63 / unit

b) The breaking point is at 400 units. The cost for initial 400 units is twice that of the additional units after 400. So, we can say that in this case of 500 units, it takes 2x cost to test initial 400 units while x to test the later 100 units.

Thus,

  • 31500 = 400 * 2x + 100 * x
  • 31500 = 800x + 100x
  • x = 31500 / 900
  • x = 35

So, plugging 35 in place of x,

the cost per unit below cost break = 2 * 35 = $70 / unit

c) Marginal cost of 650th unit is simply x that is $35 / unit

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If a defendant seeks to throw out evidence obtained by law enforcement officers during a search and seizure, and interrogation,
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Answer:

c) suppression

Explanation:

Suppression describe the lawful or unlawful act of preventing evidence from being shown in a trial.

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3 years ago
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6 0
3 years ago
Grosheim Incorporated has fixed expenses of $213,000 per year. Right now, Grosheim Incorporated is selling its products for $250
nirvana33 [79]

Answer:

781 units

Explanation:

Under the CVP concept, the break-even point is calculated by dividing the fixed costs by the contribution margin per unit.

i.e., break-even point = fixed cost/ contribution margin per unit

Currently, fixed costs are $213,000, an increase of 10% will take to

=(10/100 x $213,000) + $213,000

=$21,300 + 213,000

=$234, 300

The selling price is $250, an increase of 40%

=$250 x 1.4

=$350

variable cost will remain the same this year and the following year

Current variable  costs are 20% of sales

=20/100 x 250

=0.2 x 250

=$50

Contribution margin will be new selling price - variable costs

=$350-50

=$300

Break-eve point = $234, 300/300

=781 units

3 0
3 years ago
3 reason why loading and unloading a school bus is dangerous?
UkoKoshka [18]
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5 0
2 years ago
An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. If the required return is
drek231 [11]

Answer:

Today, the investment is worth $31,997.29

Explanation:

Giving the following information:

An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent

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

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

A= annual pay= 5,900

n= 15

i= 0.06

FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22

Now, we can determine the present value:

PV= FV/ (1+i)^n

PV= 137,328.22/ 1.06^25= $31,997.29

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3 years ago
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