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4 years ago

Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is

Business

1 answer:

nataly862011 [7]4 years ago

4 0

Answer:

$0.25

Explanation:

The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:

$MC = \$1.75-\$1.50 = \$0.25$

The marginal cost of the sixth pencil is $0.25

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Ming Company had net income of exist767, 200 based on variable costing. Beginning and ending inventories were 7, 300 units and 4

pychu [463]

Answer:

Part 1

Absorption Costing Net Income = $760,700

Part 2

Income under absorption costing will be: Lower than income using variable costing

Explanation:

The difference in net income under absorption costing and variable costing is because of fixed costs that are in closing inventory.

If we are given net income under one method we can find the net income under the other method by performing a reconciliation as follows :

Reconciliation of Variable Costing Income to Absorption Costing Income

Variable Costing Net Income $767, 200

Add fixed cost in closing stock (4, 700 × $2.50) $11,750

Less fixed costs in opening stock (7, 300 × $2.50) ($18,250)

Absorption Costing Net Income $760,700

5 0

3 years ago

The total cost to the firm of producing zero units of output is A. its variable cost in both the short run and the long run. B.

likoan [24]

Answer:

B. its fixed cost in both the short run and the long run.

Explanation:

As there is no production the fixed costs remains the same for short run and long run too, because there is no activity which might be used for these costs allocation in the short or long run. In the long run a fixed cost might behave as a variable cost if there is any activity involved. I the short run the fixed costs is considered as fixed whether there is any activity or not.

4 0

3 years ago

A company wants to cultivate brand ambassadors for their new product so that others will follow their trail. They should go afte

viva [34]

A company that wants to cultivate brand ambassadors for its new product so that others will follow in its wake should go after celebrities and digital influencers who use social media to generate publicity and engagement for a product.

It's a marketing technique called celebrity endorsement, which is a strategy to reach a larger number of people through a certain celebrity's fan audience.

This is an advantageous strategy capable of increasing the brand equity, generating greater identification, engagement and influence over a product and service.

Therefore, it is necessary for the company to use celebrity endorsements by choosing ambassadors who have a profile aligned with the target audience and brand values.

In this way, influence marketing has the potential to generate trust and admiration in the consumer, thus increasing your advertising, positioning and profitability.

Learn more here:

brainly.com/question/19735018

5 0

3 years ago

IPS Corp. will upgrade its package-labeling machinery. It costs $850,000 to buy the machinery and have it installed. Operation a

katrin [286]

Answer:

The future worth of cost of the machinery is –$8,227,391.25.

Explanation:

The value of an amount of money at a particular interest rate at some point in the future is referred to as future worth.

Note: See the attached excel file for the calculation of the future worth of cost of the machinery.

In the attached excel file, the discounting factor for each year is calculated as follows:

Discounting Factor = (100% + Interest)^Remaining years ………………. (1)

Where:

Interest = 25%

Remaining years = 10 – Number of current year

In the attached excel file, we have:

Total future worth = (8,227,391.25) = –$8,227,391.25

Therefore, the future worth of cost of the machinery is –$8,227,391.25.

Download xlsx

8 0

4 years ago

Equipment is a(n) _____________ account. It is reported on the _____________ side of the accounting equation and is ____________

Stella [2.4K]

Answer:

Equipment is an _asset__ account. It is reported on the _left_ side of the accounting equation and is __increased__ when equipment is purchased

Explanation:

Buying more Equipment is an asset to company in the sense that it helps in boosting the company production output and in turn generating more profit. It is reported on the left side of the company accounting equation. The aggregate equation increases as the number of equipment purchase increases.

3 0

3 years ago