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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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Converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as aggregate planning.

Aggregate planning is a method for developing a business by arranging a management to the production and demands. In this method, the quarterly and annual business plans are converted into broad output and labor requirements for the intermediate term. This intermediate term may last from 4 to 12 months.

In this period of time the company will hire new employees to make enough output to satisfy the demands and thereby maximizing the profit with a minimum cost.

Aggregate planning ensures the efficiency and production of a company. Usually it is done as a prior activity to obtain a continuous production facility.

Learn more about aggregate planning at brainly.com/question/18803972

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1. ______ assist in the movement of goods and services from producers to industrial and consumer users. Exchange providers Finan
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Answer:

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Explanation:

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2 years ago
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Explanation:

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A

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