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Anettt [7]
3 years ago
6

"Suppose you are the owner of a small t-shirt printing business. While conducting a cost analysis of your business, you find tha

t at current production levels, your average total cost (ATC) is $10. You also know that if you increase production by one more unit, the marginal cost of that unit will be $5. If you produce another t-shirt" does the avg/marginal cost decrease or increase?
Business
2 answers:
Veronika [31]3 years ago
4 0

Answer:

The answer is The average total cost of production will decrease.

Explanation:

It cannot be known to be true if the marginal cost will decrease/increase for the very next unit of production. this will depends on what point of curve of  marginal cost and the level of the current production..

However, it is certain that, is the average total cost for the next unit produced will decrease, because the ATC is defined as total cost/output.

The next unit produced would definitely reduce the ATC, Since  the total output  is in the denominator,  this cost would move over an output larger.

Bad White [126]3 years ago
3 0

Answer:

The average total cost of production will decrease.

Explanation:

Average total costs consists of total fixed cost plus the total variable cost divided by the number of output/unit produced.

Now, since the fixed cost is fixed and doesn't change due to the change in output, the fixed cost per unit or the average fixed cost will decrease when the output will increase. Hence, resulting in the decrease of the average total cost of production.

I hope I cleared your concept above.

Best of luck and Good luck.

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When crafting a business message with strong reasoning, it is important to back claims with Multiple choice question. broad gene
Dima020 [189]

Answer:

supporting facts

Explanation:

A business message with strong reasoning has as main objectives to convince a consumer to close a deal or an employee to perform certain tasks for example, the objective is always to support an idea and positively impact and convince the public of something.

Therefore, the most suitable option for a business message with strong reasoning is to use supporting facts, as the recipient of the message will feel much more transparency and security when believing in your message if it is supported by concrete facts that support it, and this can be a strong argument to strengthen and reaffirm your idea so that it is more convincing and supported.

8 0
3 years ago
Bugle's Bagel Bakery is investigating the purchase of a new bagel making machine. This machine would provide an annual operating
bagirrra123 [75]

Answer:

Total annual cash inflow= $5,000

Explanation:

The total annual cash inflow will be the sum of the savings in operating costs and the incremental contribution from the sale of the bagels.

Annual contribution from Bagel = 1,500×$0.90=1350

Operating cost savings = 3,650

Total annual cash inflow = 1,350 + 3,650 =5,000

Total annual cash inflow= $5,000

3 0
2 years ago
Detailing's cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of August, the c
OverLord2011 [107]

Answer:

Planning budget amount = $3,052.00

Explanation:

<em>The planning budget is als0 known as the </em><em>fixed budge</em><em>t . It is the budget prepared for the original level of activity intended or  planned for. As it's name implies, it is used for  planning purpose.</em>

For the month of August, the planning budget

= $2060 + ($12 × 86)

=  $3,052.00

Planning budget amount = $3,052.00

5 0
3 years ago
Read 2 more answers
What is the normal balance for the allowance for doubtful accounts (debit or credit), and why?
abruzzese [7]

The allowance for doubtful accounts has a normal credit account.

This account is a contra-asset account. Since assets have a normal debit balance, this account would have a normal credit balance.

7 0
3 years ago
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
marysya [2.9K]

Answer:

See below

Explanation:

1. Predetermined overhead rate

= Total fixed overhead cost for the year / Budgeted standard direct labor hour

Predetermined overhead rate = $530,400 / 68,000

Predetermined overhead rate

= $7.8 per direct labor hour

2. i. Fixed overhead budget variance

= Actual fixed overhead - Budgeted fixed overhead

= $521,000 - $530,400

= $9,400 favourable

ii Fixed overhead volume variance

= Budgeter fixed overhead - Fixed overhead applied to work in process

= $530,400 - (66,000 × $7.8)

= $530,000 - $514,800

= $15,200 unfavorable

3 0
2 years ago
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