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pantera1 [17]
3 years ago
10

A firm has three different production​ facilities, all of which produce the same product. While reviewing the​ firm's cost​ data

, Jasmin, a​ manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. Another​ manager, Joshua, notes that the​ high-cost plant has high fixed costs but that the marginal cost for that plant is lower than in the other plants. He says that the​ high-cost plant should not be shut down but should expand its operations. Who is​ right? Just considering the short run time​ frame, the manager who is correct is
Business
1 answer:
kakasveta [241]3 years ago
3 0

Answer:

Joshua statement is correct.

Explanation:

Marginal cost:

Is the cost of producing a new unit.

Average Cost:

\frac{Fixed Cost + Variable Cost}{UnitsProduced} = $Average Cost

\frac{Fixed Cost}{UnitsProduced} + $Variable Cost Per Unit= Average Cost

If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.

This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.

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3 years ago
Selected financial statement information and additional data for ABC Co. is presented below. Prepare a statement of cash flows f
ELEN [110]

Answer:

1.   $175,800

2.  -$41,200

Explanation:

The preparation of the Cash Flows from Operating Activities and investing activities —Indirect Method are shown below:

1. Cash flow from Operating activities - Indirect method

Net income $240,200

Adjustment made:

Add : Depreciation expense $31,600

Less: Increase in accounts receivable -$60,200 ($144,200 - $84,000)

Less: Increase in inventory -$33,600 ($201,600 - $168,000)

Add: Increase in accounts payable $35,600 ($86,000 - $50,400)

Less: Decrease in short term notes payable -$37,800 ($29,400 - $67,200)

Total of Adjustments - $64,400

Net Cash flow from Operating activities                         $175,800

2. Cash flow from Financing activities

Add: Sale of land  $42,800 ($58,800 - $16,000)

Less: Purchase of equipment - $84,000

Net Cash flow from Financing activities                             -$41,200

8 0
3 years ago
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7 0
3 years ago
The term exchange in marketing mean?​
devlian [24]

Explanation:

i hope help <em><u>you</u></em><em><u /></em>

<em><u>follow </u></em><em><u>me</u></em><em><u> </u></em><em><u /></em><em><u /></em>

8 0
3 years ago
Business communication that is interactive, conversational, and open to those who wish to join follows which type of communicati
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Answer:

Social Communication model

Explanation:

Business communication that is interactive, conversational, and open to those who wish to join follows social communication model. In this model audience are the active participants in a conversation rather to act as passive member.

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