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ololo11 [35]
3 years ago
5

Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be cons

tant at $0.30. She has already paid $20,000 for the donut-making machinery and one year's rent.
Refer to Situation. What will Diane's approximate average fixed costs be if she sells 36,500 donuts in one year?

A. $0.088
B. $0.30
C. $0.138
D. $0.55
Business
1 answer:
saw5 [17]3 years ago
8 0

Answer:

Option (d) is correct.

Explanation:

Given that,

Average variable cost = $0.30 for each donut

Fixed cost: Cost of rent and machinery = $20,000

If the number of donuts produced and sold in one year is 36,500, then

Average fixed cost:

= Total fixed cost ÷ Number of units sold

= $20,000 ÷ 36,500

= $0.547 or $0.55

Therefore, the average fixed costs be $0.55 if she sells 36,500 donuts in one year.

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Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

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3 years ago
As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. What is t
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answer is a

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3 years ago
Andres and Lakeisha are married and file jointly. Andres is 72 years old and in good health. Lakeisha is 62 years old and blind.
PIT_PIT [208]

Answer: $26,600.

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3 years ago
The many successful movies produced by Disney are evidenced not only in the movies themselves, but in the various merchandise th
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Answer:

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8 0
2 years ago
Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for $135 per share before C
Elan Coil [88]

Answer:

number of share 30,000 share

price per share = $90

Explanation:

given data:

investor's share = 5%

outstanding share =400,000

stock split = 3/2

number of share after spliting = investor share* outstanding share* stock split

                                                  = 5%*400,000*(3/2)

                                                   = 30,000 share

per share price can be determined by using following relation:

price\  per\  share =\frac{ outstanding\  share*\  trading\ price * investor's\  share}{ number\  of \ share\  after \ splittg}

                             = \frac{40000 *135*0.05}{30000}

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3 0
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