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
goblinko [34]
3 years ago
10

7) Suppose AVC = $113 when the firm produces 515 units of output. Then the firm's fixed cost amounts to a) $5,500, and its profi

t amounts to $20,375. b) $5,980, and its profit amounts to $25,750. c) $5,750, and its profit amounts to $20,375 d) $6,180, and its profit amounts to $25,750.
Business
1 answer:
Elenna [48]3 years ago
4 0

Answer:

d) $6,180, and its profit amounts to $25,750.

Explanation:

At output 515, average variable cost is $113

VC = AVC * Q

     = $113 x 515

     = $58,195

TC = ATC * Q

     = $125 x 515

     = $64,375

Now calculate for Fixed Cost

Total Cost (TC) = VARIABLE COST (VC) + FIXED COST (FC)

FC = TC - VC

     = $64,375 - $58,195

     = <u>$6,180</u>

Calculate for profit

Profit = TR - TC

         = $90,125 - $64,375

         = <u>$25,750</u>

You might be interested in
With respect to organizational changes, a health care organization that discovered weaknesses in the organization’s ability to c
Leni [432]

Answer:

The correct answer is "Process change "

Explanation:

Process Change or Process Change Management is implemented when you identify a mistake or a process that doesn´t function in a better way. That means that you need to consider to change or modify an existing process to improve them, and what should be the goals or objectives of the change.

7 0
3 years ago
The following units of an inventory item were available for sale during the year: Beginning inventory 11 units at $51 First purc
Gennadij [26K]

Answer:

$2,338

Explanation:

For computing the ending inventory, first we have to determine the average cost per unit, then ending inventory units which are shown below:

= (Beginning inventory units × price per unit +  first purchase inventory units × price per unit + second purchase inventory units × price per unit + third purchase inventory units × price per unit) ÷ (Beginning inventory units + one purchase inventory units + second purchase inventory units + third purchase inventory units)

= (11 units × $51 + 15 units × $53 + 21 units × $55 + 17 units × $57) ÷ (11 units + 15 units + 21 units + 17 units)

= ($561 + $795 + $1,155 + $969 ) ÷ (64 units)

= ($3,480) ÷ (64 units)

= $54.375 per unit

Now the ending inventory units would be

= Available units for sale - sale units

= 64 units - 21 units

= 43 units

Now the ending inventory would be

= Ending inventory units × average cost per unit

= 43 units × $54.375 per unit

= $2,338

5 0
3 years ago
Fill in the blank
gizmo_the_mogwai [7]

It's all part of promotions

8 0
3 years ago
When applying the lower of cost or market rule to inventory valuation, market generally means?
Tom [10]
The term that is being referred here is the REPLACEMENT COST. What the market generally means when lower of cost or market rule is being applied to inventory valuation, this refers to replacement cost. This is the cost applied to an item when it is being replaced. The cost is being applied is the same as its pre-loss condition. 
5 0
3 years ago
Whipple Corp. just issued 280,000 bonds with a coupon rate of 6.02 percent paid semiannually that mature in 25 years. The bonds
sesenic [268]

Answer:

529.64 million or $529,639,600 was received from the sale of bonds.

Explanation:

Money Raised from the sale is based on the current value of the bond. Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

As per given data

Face Value = $2,000

Coupon payment = $2,000 x 6.02% = $120.4 /2 = $60.2 semiannually

Number of period = n = 25 years x 2 period per year = 50 period

Yield to maturity = 6.46% annually = 6.46% / 2  = 3.23% semiannually

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $60.2 x [ ( 1 - ( 1 + 3.23% )^-50 ) / 3.23% ] + [ 2,000 / ( 1 + 3.23% )^50 ]

Price of the Bond = $1,483.51 + $408.06 = $1,891.57

Cash received = Number of bonds x Price per bond = 280,000 x $1,891.57 = $529,639,600

3 0
3 years ago
Other questions:
  • Delta inc. moved its entire production operation to the country of xondervan, where the company was free to dump pollutants to t
    11·1 answer
  • Witch is true about stock
    14·1 answer
  • According to an old myth, native americans sold the island of manhattan about 400 years ago for $24. if they had invested this a
    6·1 answer
  • Mark Allen, a Clinical Information Systems Manager at Intermountain Healthcare, must work with others to coordinate communicatio
    6·1 answer
  • Runaround corporation sells running shoes and during january they ran production machines for​ 20,000 hours total and incurred​
    6·1 answer
  • What did the economist A.C. Pigou think the relationship was between advertising and monopolistic competition? A.C. Pigou though
    8·1 answer
  • The following transactions occurred during July: 1. Received $1,350 cash for services performed during July. 2. Received $6,950
    8·1 answer
  • A major factor contributing to the growth in the use of direct marketing IMC efforts is:__________
    9·1 answer
  • The economy of Suielevia is under severe financial distress. Over the last few months, the economy has gradually picked up and t
    14·1 answer
  • The Family and Medical Leave Act: _____________
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!