Answer:
$24 is the marginal cost of producing the third unit of output.
Explanation:
We know that the average variable cost of producing 3 units is 32, if we multiply 32 by 3 we get the total variable cost of producing 3 units. So 96 is the total variable cost of producing 3 units. Now we know that the marginal cost of producing the firs unit is 40 and the second unit is 32 so we can subtract (32+40) from 96 to find the marginal cost of the third unit.
96-(32+40)=24
Answer:
See below
Explanation:
Given the above information, margin of safety in dollars is computed as;
= (Total sales - Break even sales) × Sales price
= (4,525 - 2,000) × $90
= $227,250
Therefore, the margin of safety in dollars is $227,250
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $30,000
Accumulated Depreciation - Equipment A/c $12,494
To Equipment A/c $40,606
To Gain on Disposal of Equipment $1,888
(Being sale of machinery is recorded and the remaining balance is credited to the Gain on Disposal of Machinery A/c)
The computation is shown below:
= $30,000 + $12,494 - $40,606
= $1,888
