1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fynjy0 [20]
3 years ago
14

produces decorative mailboxes. The​ company's average cost per unit is $ 23.43 when it produces 1 comma 400 mailboxes. Requireme

nts 1. What is the total cost of producing 1 comma 400 ​mailboxes? 2. If $ 20 comma 202 of the total costs are​ fixed, what is the variable cost of producing each​ mailbox? 3. Write Rollins Mailbox​'s cost equation. 4. If the plant manager uses the average cost per unit to predict total​ costs, what would the forecast be for 1 comma 500 ​mailboxes? 5. If the plant manager uses the cost equation to predict total​ costs, what would the forecast be for 1 comma 500 ​mailboxes? 6. What is the dollar difference between your answers to questions 4 and​ 5? Which approach to forecasting costs is​ appropriate? Why?
Business
1 answer:
lianna [129]3 years ago
3 0

Answer:

1) The total cost of production (TC) is $32,802.

2) The variable cost per unit is $9/unit.

3) Cost equation: TC(Q)=20,200+9Q

4) TC=$35,145

5) TC=$33,702

6) Difference=$1,443

The appropiate approach is using the cost function, because its differentiates the cost that are fixed and not dependant of the volume of production, and the variable cost, that are proportional to the quantity produced.

Explanation:

1) The total cost of production can be calculated as the product of the cost per unit ($23.43/unit) and the total ammount of units (1,400 units):

TC=c*Q=23.43*1,400=32,802

The total cost of production (TC) is $32,802.

2) The fixed cost (FC) are $20,202, so the variable cost are:

VC=TC-FC=32,802-20,202=12,600

This is the variable cost for 1,400 mailboxes, so the unit variable cost is:

vc=VC/Q=12,600/1,400=9

The variable cost per unit is $9/unit.

3) The equation of cost can be written as:

TC(Q)=20,200+9Q

4) If it uses the average cost tot predict the cost of 1,500 mailboxes, he will get:

TC=23.43*1,500=35,145

5) If he uses the cost function, he will get

TC=20,202+9*1500=20,202+13,500=33,702

6) The dollar difference between the two estimates is:

TC_4-TC_5=35,145-33,702=1,443

The appropiate approach is using the cost function, because its differentiates the cost that are fixed and not dependant of the volume of production, and the variable cost, that are proportional to the quantity produced.

The average cost per unit is not constant for every quantity and the error will increase if the quantity is much different from 1,300 units.

You might be interested in
Column A
kykrilka [37]

Answer:

omg what is this I can't understand sorry

3 0
2 years ago
Wanda is organizing an Employee Appreciation Day event and is soliciting vendors to provide food and drinks. There are 638 emplo
DedPeter [7]

In this case, Wanda can calculate the revenue for her Employee Appreciation Day event by using this formula:

  • revenue = [(number of employees of the company) + (½ x number of employee of the company)] x event price
  • x = [(638) + (319)] x 2
  • x = 952 x 2
  • x = $1,914

Thus, Wanda’s expected revenue is $1,914, assuming that half of the employees are married and will be attending the Employee Appreciation Day alongside their spouse.  


6 0
3 years ago
Frolic Corporation has budgeted sales and production over the next quarter as follows: August September Sales in units Productio
Black_prince [1.1K]
Bro its c im sure just put c
5 0
2 years ago
You have a standard practice of displaying all student work in your classroom. Recently, you assigned students to write any essa
Tresset [83]

Answer:

The first amendment involves the freedom off free scheech and religion. Meaning that a person can not criticize or not display a person's religion based on your own beliefs or beliefs of others.

Explanation:

Reference possibilities could be

1. http:/guides.library.harvard .edu/

2. Your state website ie Maine.gov mass.gov

3. USA.gov is the federal law

4. Loc.gov is the library of congress

5. 6. Supremecourtus.gov and supremecourts

Gov/opinions for us Supreme Court and recent opinions

7. Law.cornell.edu/citation for legal citations for legal arguments if needed as well as taking the citation out of the address bar to use for finding the law online

8. Http.thelawdictionary.org for legal terms or the black law dictionary

Be cautious of commercial websites some that are good and can give information that is not completely accurate.

C1. Findlaw.com

C2. Lexisone.com for federal and state cases and statutes

Both are used for general information.

Good luck.

5 0
3 years ago
The foreign exchange market:
zheka24 [161]

Hello! Your answer would be C. Facilitated the buying and selling of foreign currencies. I just learned about it.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Cado Co.'s payroll for the month ended January 31 is summarized as follows:Total wages $100,000Amount of wages subject to payrol
    14·1 answer
  • Heidi's Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10,
    9·1 answer
  • Human capital is
    14·1 answer
  • For which of the following would major medical coverage be useful?
    11·1 answer
  • Ok I need serious help!!!!!!
    14·1 answer
  • On November 1, Mason Corp. issued $800,000 of its 10-year, 8% term bonds dated October 1. The bonds were sold to yield 10%, with
    12·1 answer
  • Under the Securities Act of 1933, which of the following would MOST LIKELY be included in the definition of an underwriter? a. A
    7·1 answer
  • The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and
    14·1 answer
  • The endpoints (horizontal and vertical intercepts) of the budget line: Group of answer choices represent the quantity of each go
    12·1 answer
  • A positive consequence of organizational distress may take the form of: a. functional turnover. b. absenteeism. c. employee work
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!