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
Amanda [17]
3 years ago
14

When marginal cost exceeds average total cost:

Business
1 answer:
gtnhenbr [62]3 years ago
4 0

Answer:

B) average total cost must be rising

Explanation:

Marginal cost is the rate at which total variable cost increases when one more unit is produces.

So when marginal cost is larger than average cost, it means that total average costs must be increasing.

For example, we have the following production costs:

  • total costs = $100
  • units produced = 20 units
  • total average costs = $5 per unit

If the marginal cost of producing 1 more unit is $6, then the total costs will be $106 and the total average cost will be $5.05 per unit (= $106 / 21 units).

You might be interested in
Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system. The followi
jok3333 [9.3K]

Answer:

1. $28

2. $278,040

3. $7,560 under-applied

4. $8.8536

Explanation:

The computation is shown below

1. Predetermined overhead rate = (Total Budgeted: Overhead) ÷ (estimated direct labor-hours)

= $285,600 ÷ 10,200 hours

= $28

2. The applied overhead would be

= Actual direct labor-hours × predetermined overhead rate

= 9,930 hours × $28

= $278,040

3. The over applied or under applied would be

= Actual manufacturing overhead - applied overhead

= $285,600 - $278,040

= $7,560 under-applied

4. Total cost per unit would be

= (Prime Cost + Applied Overhead) ÷ (Number of units)

= ($1,050,000 + $278,040) ÷ (150,000 units

= $1,328,040  ÷ 150,000 units

= $8.8536

7 0
3 years ago
Charmingbells inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down bec
Elena L [17]
The situation best outlines Competitive Failure. In financial aspects, advertise disappointment is a circumstance in which the portion of products and ventures isn't proficient. That is, there exists another possible result where no less than one individual might be improved off without exacerbating another person off.
6 0
3 years ago
Read 2 more answers
Aloan Co. provides the following sales forecast for the next three months: January February March Sales units 3,000 4,200 5,000
Natalka [10]

Answer:

Total= 3,120 units

Explanation:

Giving the following information:

production budget:

January= 3,000 units

February= 4,200 units

March= 5,000 units

The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.

Beginning inventory= 300 units.

To calculate the production for any month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

<u>January:</u>

Sales= 3,000

Desired ending inventory= (4,200*0.1)= 420

Beginning inventory= (300)

Total= 3,120 units

6 0
3 years ago
Refer to the information for Alfombra Inc. below.
Ann [662]

Answer:

<u>cost to be accounted for:</u>

beginning cost: 180,000

added cost        756,000

total cost         <em>   936,000</em>

<u>cost accounted for:</u>

ending WIP 30,000 x 5.2           =  156,000

trasnsferred-out: 150,000 x 5.2 =  780,000

total cost accounted for           <em>      936,000</em>

Explanation:

150,000 completed

 50,000 at 60%

weighted average equivalent unit:

complete + percetage of completion ending WIP

150,000 + 50,000 x 60% = 180,000

Cost per unit:

936,000 / 180,000 = 5.2 dollar per unit

we should match the total cost pool with the ending WIP and trasnferred out units

4 0
3 years ago
What are two advantages of the procurement integrated enterprise environment.
nevsk [136]

Answer:

Increasing visibility on all procurement stages. You can get access to the reports, documents, payments, workflows anytime. Data Security.

Explanation:

here is your answer if you like my answer please follow

4 0
2 years ago
Other questions:
  • Owens Finest Mattress Co., Inc. decided to employ an anti-mission statement. Which of the following phrases did they use?
    13·2 answers
  • The Wagner Act of 1935 is grounded in which of the following principle beliefs regarding conflict?
    7·1 answer
  • "Government works to create a competitive marketplace because it believes competition helps markets function well. Yet governmen
    12·1 answer
  • What is the difference between global trade and domestic trade?
    10·2 answers
  • It is estimated that the net cash flows to be received from the copyright will be $63,000, and its fair value is $59,850. The ac
    10·1 answer
  • Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2.460 per month plus $49 per boat. For the month of
    12·1 answer
  • What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet? Do you believe Blai
    15·1 answer
  • Tamery Corp. is engaged in marketing various goods and services. It buys products from various manufacturers and sells them to b
    7·1 answer
  • Emma is the team lead at a data analytics firm. She believes in encouraging her team members to fulfill their job responsibiliti
    15·1 answer
  • 2. For the fiscal year of 2017, Excel Sports Inc. had a net income of $255,000 and paid out $51,000 as common dividend. Meanwhil
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!