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JulijaS [17]
3 years ago
6

The per-unit cost of an item is its average total cost (= total cost/quantity). suppose that a new cell phone application costs

$250,000 to develop and only $0.70 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units?
Business
1 answer:
emmasim [6.3K]3 years ago
8 0

Answer:

Cost per unit= $2,500.70

Explanation:

Cost per unit of an item is the fixed cost of producing the item plus the variable cost.

That is:

Total cost = fixed cost + variable cost

In this instance the fixed cost (cost of the application) is given as $250,000

The variable cost (cost of delivery) is $0.7

For 100 units variable cost will be $0.7* 100= $70

Total cost= 250,000+ 70

Total cost= 250,070

Cost per unit = Total cost/ Number of units

Cost per unit= 250,070/100

Cost per unit= $2,500.70

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A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC= 10000 +0.04q2 .
iren2701 [21]

Answer:

700

Explanation:

The condition for maximizing profits is Marginal cost = Price.

1. We need to calculate the marginal cost, which is the first derivative of the total cost function.

  • marginal cost = (TC=10000+0.04q2=) '

  • MC=0.08q

2. Now, we equalize the MC to the price and solve for q.

0.08q=56

q=56/0.08

<h2>q=700</h2>

6 0
2 years ago
Explain how each of the following events changes the demand for or supply of jeans. A. Upper A new technology becomes available
Dima020 [189]

Answer:

A. Where a new technology that reduces the time it takes to manufacture a pair of jeans is available, it will leads to a change in supply. For example if a new machine is invented which decreases output per unit of time, there will decrease in the supply of a pair of jeans.

B. Where the price of the cloth (denim) used to make jeans rises, it will affect the change in the supply of jeans because an increase in the price of the raw materials used (denim) in making jeans, it will lead to a reduction in supply.

C. Where Jeans go out of fashion, it will cause a change in demand or supply because taste changes over time. For example, if jeans go out of fashion there would be a decrease in demand and supply for it.

D. Where the price of a pair of jeans falls, it will not affect the change in demand or supply of the jeans because a change in the price of a commodity is not a factor that causes a change in demand or supply.

E. Where the wage rate paid to garment workers falls, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.

F. Where many jeans producers go out of business, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.

H. Where people's incomes increase, it will affect the change in demand that leads to increase in demand for a pair of jeans

Explanation:

Causes of changes in demand and supply

Demand refers to the quantity of a commodity which consumers are willing and able to purchase at a particular price and at a particular period of time.

The Law of demand sates that 1) the higher the price of a commodity, the lower the quantity demanded, and  2) the lower the price of a commodity, the higher the quantity demanded.

The Change in demand (shift in the demand curve): There is a change in demand if the demand curve shifts to an entirely new position. A change in demand is determined by the factors affecting demand, other than price in a commodity. Factors affecting change in demand include changes in taste, fashion, population size, and income. 

The Supply of a commodity is the quantity of that commodity which sellers are willing and able to offer for sale at a particular price, at a particular period of time.

The Law of supply states that the higher the price of a commodity, the higher the quantity supplied while the lower the price of a commodity, the lower the quantity supplied.

The Change in supply (shift in the supply curve): There is a change in supply if the supply curve shifts to an entirely new position. A change in supply is determined by the factors affecting supply, other than price in a commodity. Factors affecting supply include Technological development, weather and climate, government policies/effects of subsidies and taxation, a new source of raw materials. A change in supply could be a decrease or increase in supply of a commodity. 

8 0
2 years ago
Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 10 utils and the
sammy [17]

Answer:

INCREASE in Consumption of product Y

DECREASE in Consumption of product X

Explanation:

Based on the information given we were told that the already existing product (X) has a marginal utility of 10 utils as well as the price of the amounts of $5 while the new product (Y) has a marginal utility of 8 utils as well as the price of the amounts of $1 which means that PRODUCT Y marginal utility and price is lower than that of PRODUCT X marginal utility and price.

Therefore equal marginal principle suggests that Oscar should INCREASE his consumption of product Y and DECREASE his consumption of product X reason been that product Y has a lower marginal utility of 8 utils and the price of the amounts of $1 which means that his consumption of Product Y has to be INCREASED while product X on the other has a higher marginal utility 10 utils as well as the price of the amounts of $5 which means that his Consumption of Product X has to DECREASED.

7 0
3 years ago
Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2:_________.
klemol [59]

Answer:

Ansara Company

a. Ansara Company  Variable Costing Income Statement

For the Year Ended December 31, 20Y2 (in millions)

Sales                                                                         $ 21,920

Variable cost of goods sold:

Beginning inventory                             $ 1,841

Variable cost of goods manufactured 13,810

Ending inventory                                    2,149

Total variable cost of goods sold                               17,800

Manufacturing margin                                               $4,120

Variable selling and administrative expenses              870

Contribution margin                                                 $3,250

Fixed costs:

Fixed manufacturing costs                      $ 4,820

Fixed selling and administrative expenses 1,100

Total fixed costs                                                        5,920

Income from operations                                         $2,670

b. Explanation of the difference between the amount of income from operations reported under absorption costing and variable costing concepts:

The difference occurs as a result of cost of inventory at the beginning and at the end.  Under variable costing concept, the fixed manufacturing costs does not form part of the product costs.  They are treated as period costs.  But under absorption costing, fixed manufacturing costs form part of the product costs.

Explanation:

a) Data:

Ansara Company Abbreviated Income Statement for the year ended December 31, 20Y2: (in millions):

Sales                                       $21,920

Cost of goods sold                $18,630

Gross profit                             $3,290

Selling, administrative, and

other expenses                        1,970

Income from operations        $1,320

b) Absorption costing concept is a costing technique that includes the full cost of manufacturing (i.e. cost of direct materials, direct labor, and all fixed production costs or overheads) in the product costs.  Under variable costing concept, the full cost of manufacturing is not included in the product costs.  Instead, all the variable costs (direct materials, direct labor, and variable overhead, whether factory or not)  are included, while fixed manufacturing overheads are treated as period costs and expensed.

5 0
3 years ago
What are the rules of brainstorming? Check all that apply.
Allisa [31]

Answer:

<h3>Always make sure to write all the ideas down. </h3><h3>Make no judgement.</h3><h3>Briefly discuss and elaborate on each idea as they are presented. </h3><h3>Let people know they will be brainstorming in advance if possible .</h3>

Explanation:

  • One of the most basic rule of brainstorming includes the practice of inclusiveness. It is important to bring all ideas together and write it down as in a brainstorming session, quantity matters over quality.
  • Each and every idea should be <u>respected by all</u>. One should not make any judgement of another person's idea.
  • It is important to briefly discuss each idea as they are presented as to fully <u>comprehend the main motive behind each idea</u>. Some ideas become more refined as we discuss more upon it.
  • It is also important to let the members know that there will be a brainstorming session in advance so that <u>each member can think of an idea before the actual session</u> takes place.
8 0
3 years ago
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