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4 years ago

As a firm produces more units of a good, its

Business

1 answer:

AURORKA [14]4 years ago

6 0

Answer:

fixed costs remain constant in the short run and its variable costs rise.

Explanation:

Fixed costs are the expenses that do not vary with the production level in a period. Fixed costs will, therefore, remain constant in the period regardless of the production level. Examples of fixed costs include rents, depreciation, and administrative salaries.

Variable costs vary with the output level. They are the expenses that increase as production increase and decrease as output decreases. In other words, variable expenses are directly proportional to the production level. Examples of variable costs include packaging and raw materials.

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Drafi Arts Corp. makes and sells original handicraft products. The management of the company has been successfully using a niche

Lerok [7]

Answer:

It only serves a limited geographic market.

Explanation:

In this regard, it can be said that the company Drafi Arts Corp serves a limited geographic market, because it is a company that has been using a successful niche market strategy for years, which means that it manages to meet a demand for handicrafts from location, which sets up its strategy to serve a specific market.

4 0

3 years ago

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in

Bezzdna [24]

Answer:

Inventory= $251,540

Explanation:

Giving the following information:

Swifty Company took a physical inventory on December 31 and determined that goods costing $203,600 were on hand. Not included in the physical count were $25,420 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,520 of goods sold to Alvarez Company for $32,230, f.o.b. destination.

Both the purchase and the sale must be accounted for in inventory. The purchase is FOB shipping point, therefore it is responsibility os Swifty. The sale was made FOB destination, as it is in transit, it is the responsibility of Swifty.

Inventory= 203,600 + 25,420 + 22,520= $251,540

3 0

3 years ago

Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.

Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

($250,000 − $200,000)/$200,000 = 0.25 or 25%

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0

4 years ago

Anthony Roofing's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $30,000 Variable ma

liberstina [14]

Answer:

Total budgeted manufacturing cost = $824,000

Explanation:

The total budgeted manufacturing cost is the sum of the variable and fixed manufacturing cost

The fixed manufacturing cost of $30,000 would be absorbed (i.e charged to the units produced using overhead absorption rate (OAR).

OAR = Budgeted fixed manufacturing cost / Budgeted production squares

= $30,000 / 50,000 squares = $0.6 per square

Absorbed fixed manufacturing cost= OAR × actual production of squares

Absorbed fixed manufacturing cost= $0.6 × 40,000 = $24,000

Variable manufacturing cost = $20.00 × 40,000 =800,000

Total budgeted manufacturing cost = $24,000 + $800,000 = $824,000

Total budgeted manufacturing cost = $824,000

5 0

3 years ago

Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after

EleoNora [17]

Answer:

Best estimate of the current stock price= $42.64

Explanation:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}$ .

where P2 = $\frac{D3}{ke-g}$

D0=$1.75

D1=$1.75(1.25)

D2=$1.75(1.25)(1.25)

D3=$1.75(1.25)(1.25)(1.06)

Price of the stock today = $\frac{1.75(1.25)}{(1+0.12)^1}+\frac{1.75(1.25)(1.25)}{(1+0.12)^2}+\frac{1.75(1.25)(1.25)(1.06)}{(0.12-0.06)(1+0.12)^2}$ . = $42.64

8 0

4 years ago