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Schach [20]
3 years ago
7

Cooke Corporation reports that at an activity level of 7,000 units, the total variable cost is $590,730, and the total fixed cos

t is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units? Assume that this level of activity is within the relevant range.
Business
1 answer:
Hoochie [10]3 years ago
8 0

Answer:

$971,919

Explanation:

Given:

For activity level = 7,000 units

Total variable cost = $590,730

Total fixed cost = $372,750

Now,

Variable cost per unit = \frac{\textup{Total variable cost }}{\textup{Activity level}}

or

Variable cost per unit = \frac{\textup{590,730}}{\textup{7,000}}

or

Variable cost per unit = $84.39

The fixed cost remains the same irrespective of the number of units produced

Therefore,

The total cost for activity level of 7,100 unit

= Total variable cost for 7,100 units + Total fixed cost

= Variable cost per unit  × Number of units + Total fixed cost

= ( $84.39 × 7,100 ) + $372,750

= $599,169 + $372,750

= $971,919

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vekshin1

Jacob is an example of a conformist follower. These kind of followers are also known as the yes people. The explanation behind this is a conformist contributes enthusiastically in a relationship with the boss but doesn't use critical thinking abilities. In other words, a conformist naturally transmits out any and all orders notwithstanding of the environment of the demand. The conformist contributes willingly, but without seeing the costs of what he or she is being requested to do. A conformist is worried only with evading conflict.

5 0
3 years ago
Read 2 more answers
Crockin Corporation is considering a machine that will save $9,000 a year in cash operating costs each year for the next six yea
Roman55 [17]

Answer:

IRR = 16.5%

Explanation:

T<em>he IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero  </em>

<em>If the IRR greater than the required rate of return , we accept the project for implementation  </em>

<em>If the IRR is less than that the required rate , we reject the project for implementation  </em>

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

NPV = PV of annual savings - initial cost

PV of annual savings = A× (1- (1+r)^(-n) )/r

A- annual savings in operating cost , r- rate of return, n- number of years

NPVa  at 10% discount rate

PV of cash inflow = (9,000×  1-1.1^-6)/0.1 =   39,197.35  

NPV =    65,328.91 - 33,165 =  6,032.35  

NPVb at 20% discount rate

PV of cash inflow = (9,000×  1-1.2^-6)/0.2=  (3,235.41)

NPV = 29,929.59  -33,165 = (3,235.41)

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

IRR = 10% + ( (6,032.35/(6,032.35 +3,235.41) )× (20-10)%= 16.51%

IRR = 16.5%

8 0
3 years ago
20. Which of the following is not a difference between monopolies and perfectly competitive markets? a. Monopolies can earn prof
Naily [24]

Answer:

The correct answer is option c.

Explanation:

A perfectly competitive market has a large number of buyers and sellers. The firms are price takers and the price is determined by the market forces. Thus the monopoly firms face a horizontal demand curve. This horizontal line represents price, average revenue, and marginal revenue. The equilibrium is obtained where price, (average revenue and marginal revenue) is equal to marginal cost. There is no restriction on entry and exit of firms in the long run. That's why firms face a break-even in the long run.  

While in a monopoly market there is a single firm. This firm fixes price higher than marginal cost. The demand curve of the monopoly is a downward sloping showing relatively elastic demand. A monopoly firm can earn profits in both the short run as well as the long run.

6 0
3 years ago
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $ 3,500 winnings in the bank. The reserve requ
Katarina [22]

Answer:

$3,325

Explanation:

Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.

In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.

the maximum possible increase in the money supply as a result of your bank deposit is $3,325.

5 0
3 years ago
A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $900,000 with an estimated useful life of 1
gavmur [86]

Answer:

depreciation expense 2017 = $180,000

depreciation expense 2018 = $144,000

depreciation expense 2019 = $115,200

Explanation:

purchase cost $900,000

estimated useful life 10 years

depreciation expense using double declining method = 2 x regular straight method depreciation rate x purchase cost

depreciation expense 2017 = 2 x 1/10 x $900,000 = $180,000

depreciation expense 2018 = 2 x 1/10 x $720,000 = $144,000

depreciation expense 2019 = 2 x 1/10 x $576,000 = $115,200

8 0
3 years ago
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