The Highway Transportation System __________

Give the formulas for and plot average fixed cost, AFC, marginal cost, MC, average variable cost, AVC, and average cost, AC,

zloy xaker [14]

Answer:

AFC = $\frac{TFC}{q}$

MC = $\frac{d}{dq}$ TC

AVC = $\frac{TVC}{q}$

AC = $\frac{TC}{q}$

Explanation:

The cost function is given as $C=9+q^{2}$ .

The fixed cost here is 9, it will not be affected by the level of output.

The variable cost is $q^{2}$ .

AFC = $\frac{9}{q}$

MC = $\frac{d}{dq}$ TC

MC = $\frac{d}{dq}$ $C=9+q^{2}$

MC = 2q

AVC = $\frac{TVC}{q}$

AVC = $\frac{q^2}{q}$

AVC = q

AC = $\frac{TC}{q}$

AC = $\frac{[tex]C=9+q^{2}$ }{q}[/tex]

AC = $\frac{9}{q} +q$

3 0

3 years ago

Greg is the owner of a full-service car wash. For the month of December he paid $2,000 in rent, $700 in utilities, $2,950 in sal

galben [10]

Answer:

Break-even point= 713 car washes

Explanation:

Giving the following information:

For December he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full-service car wash costs $10.50. Unit variable costs per car wash are $2.50.

First, we need to calculate the total fixed costs:

Fixed costs= rent + utilities + salaries + advertising

Fixed costs= 2,000 + 700 + 2,950 + 50= $5,700

Now, using the following formula, we can calculate the break-even point in units:

Break-even point= fixed costs/ contribution margin

Break-even point= 5,700/ (10.5 - 2.5)= 713 car washes

3 0

3 years ago

A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per

Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost = Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0

3 years ago

Use the following information to answer this... Use the following information to answer this question. Windswept, Inc. 2010 Inco

prisoha [69]

Answer:

The Quick ratio: 0.86:1

Explanation:

The question is completed first as follows:

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 270 $ 300 Accounts payable $ 1,530 $ 1,485 Accounts rec. 1,080 980 Long-term debt 1,140 1,340 Inventory 1,930 1,755 Common stock $ 3,420 $ 3,370 Total $ 3,280 $ 3,035 Retained earnings 680 930 Net fixed assets 3,490 4,090 Total assets $ 6,770 $ 7,125 Total liab. & equity $ 6,770 $ 7,125 What is the quick ratio for 2010?

Solution:

The requirement is to use the given information to calculate Windswept Inc's Quick ratio for 2010.

Quick ratio: this represents the ability of an organisation's short term liquidity to cover and cater for its short term obligation. Basically, it looks at the ratio of the current assets of an organisation (those that can be quickly converted to cash) to meet the current liabilities.

The formula for quick ratio= Current Assets - Inventory / Current Liabilities

Windswept's quick ration = Cash + Accounts receivable / Accounts Payable (all for 2010)

= $300 + 980 / $1, 485

= $1,280/$1,485

= 0.86:1

This means that the current asset of the company can only cover its current obligations up to about 86%. This is the quick ratio.

5 0

3 years ago

Imagine you inherited $50,000, and you want to invest it to meet two financial goals: (a) to save for your wedding you plan to h

AleksAgata [21]

Answer:

<u>Solution and Explanation:</u>

<u>Evaluation for investment decisions </u>

Investing for Wedding
Investing for Retirement

CD – 24 months .

Energy sector mutual fund

General electric bond – 18 months
Johnson & Johnson stock

Money market shares
General electric bond – 2.5 years

Saving account
Dow ETF

Short term junk Bonds
Treasury Note – 60 months

CD – 24 months= Maturity period has met the criteria for short term goal and money used for their wedding

General electric bond – 18 months=Bonds are generally Long term or short term depends upon the maturity period for this bond has only 18 months maturity period

Money market shares = This instrument is readily converted into cash at any point in time

Saving account = No obligation of any maturity period saving account is personal account

Short term junk Bonds = Short term junk bonds are for a short period of time

Energy sector mutual fund = This sector mutual fund has long term maturity period and thereafter returns in the long term

Johnson & Johnson stock = It is considered as a dividend growth stock and investor invest for high growth on the market value of the share price

General electric bond – 2.5 years = This instrument has a long term maturity period

Dow ETF ETF is retained for capital gains in the near future period but their gestation period is high

Treasury Note – 60 months = Investment for 60 months which is not suited for short term goal of investor

6 0

3 years ago

The Highway Transportation System ___________.