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3 years ago

If a firm's average total cost is less than price where MR = MC,

Business

1 answer:

bekas [8.4K]3 years ago

3 0

Answer:

C. the firm should produce if its price exceeds average variable cost.

Explanation:

WHen average total cost is less that price, this means you are making a profit, and since they are in the equilibrium sate with Margina revenue being equal to marginal cost, they are in the sweet spot of production, so the only thing left for them is producing if its price exceeds average variable cost, and that would maximize their profits.

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Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.5

stellarik [79]

Answer:

correct option is (A) 16,500 units.

Explanation:

given data

shirts sold = $7.50

variable cost = $2.25

after tax net income = $5,040

selling price =$10

solution

we get here first fixed cost that is

Break even sales units = Fixed costs ÷ Contribution per unit .............1

put here value

20000 = $\frac{fixed \ cost }{7.50 -2.25}$

Fixed costs = $105000

and

Fixed costs coming year will be

Fixed costs coming year = ($105000 × 1.10)

Fixed costs coming year = $115500

and

Variable cost = $2.25 + ($2.25 × $\frac{1}{3}$ )

Variable cost = $3

so that Contribution margin will be

Contribution margin = Sales price - Variable cost ............2

Contribution margin = $10 - $3

Contribution margin = $7

and

break even sales units is

break even sales = $\frac{115500}{7}$

break even sales = 16500 units

so correct option is (A) 16,500 units.

4 0

3 years ago

Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply. The APT maintains

Klio2033 [76]

Answer: The APT identifies all relevant factors that affect the realized returns on stocks.

Explanation:

Arbitrage pricing theory (APT) is an idea that has to do with the fact when the linear relationship between the macroeconomic variables and the expected return of an asset are analysed, such assets return can be forecasted.

In arbitrage pricing theory, several risk factors are used in determining prices. It also identifies all relevant factors that affect the realized returns on stocks.

4 0

2 years ago

What is pulchritude

Rufina [12.5K]

Answer: it means beauty

Explanation:

5 0

3 years ago

___________is a conductor installed on the supply side of a service or separately derived system to ensure the required electric

g100num [7]

Answer:

Supply-side bonding jumper

Explanation:

A supply side bonding jumper is a transmitter on the stockpile side or inside an assistance or independently inferred framework to guarantee the electrical conductivity between metal parts required to be electrically associated.

A bonding jumper on the stock side of an over current gadget

The size of the stock side holding jumper depends on the unground stage conductors

7 0

3 years ago

Tatham Corporation produces a single product. The standard costs for one unit of its Clan product are as follows:

Alla [95]

Answer:

$3,500 Unfavorable

Explanation:

The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-

Variable overhead efficiency variance

= (Standard labor hours - actual labor hours) × (Standard variable overhead rate)

= (3,500 × 2 - 7,500) × $7

= (7,000 - 7,500) × $7

= $3,500 Unfavorable

Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.

3 0

2 years ago

If a​ firm's average total cost is less than price where MR​ = MC,

If a firm's average total cost is less than price where MR = MC,