Answer:
B. $6000
Explanation:
Given that
Price = $9
Average total cost (ATC) = $7
Output (Q) = 3000
Two methods can be used in calculating profit in this case.
The first method is
Profit = (price - ATC) × Q
= (9 - 7) × 3000
= 2 × 3000
= $ 6000
The second method is
Profit = Total revenue (TR) - Total Cost (TC)
Where TR = Price × Q = 9 × 3000 = $27000
TC = ATC × Q = 7 × 3000 = $ 21000
Therefore,
Profit = 27000 - 21000
= $6000
Any method used will result to the same answer.
NOTE THAT,
ATC = Total cost / Q.
So change of formula was used to obtain Total cost from this formula.
building society --- is owned by its members and provides banking servic
trust company --- acts as a fiduciary and handles custodial asset arrangements
asset management firm --- invests people's funds in financial assets
stock brokerage firm --- trades securities and makes money from commissions
Answer:
See the explanation section
Explanation:
Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.
Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.
Answer:
see below
Explanation:
<u>1. COGS</u>
Expenses incurred for manufacturing or obtaining the products and materials sold during a given period.
COGS are the direct expenses in the production process. They include labor, materials, and direct overheads.
<u>2. Gross profit </u>
Balance arrived at after deducting the expenses incurred on the goods sold from the revenue earned by selling the goods.
The revenues must exceed the expenses for a business to realize a gross profit. Otherwise, it will be a loss.
3<u>. Operating expenses</u>
Expenses that a business incurs to carry out its daily operations. They are the indirect cost of production. Examples include insurance, administrative, and security costs.
4. <u>Selling expenses </u>
Money spent on advertising, traveling, and promotions. These are the costs incurred in the selling process.
