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gulaghasi [49]
3 years ago
5

We observe that total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units. Which of the follow

ing is true if marginal cost is constant?
a. Fixed Cost = $100

b. Fixed Cost = $200

c. Fixed Cost = $300

d. Fixed Cost = $400
Business
1 answer:
iren2701 [21]3 years ago
7 0

Answer:

c. Fixed Cost = $300

Explanation:

Because marginal cost is constant we can find the variable cost per unit and then subtract the total variable cost from the total cost in order to find the fixed cost. The firms total cost increase $300 (from 1500 to 1800) when output increases by 10 units (from 40 to 50), so the variable cost per unit is 300/10=30.

Now to calculate the total variable cost we will multiply variable cost per unit by the number of units.

50*30= 1500

Now we will subtract 1500 from 1800 in order to find the fixed cost.

1800-1500=300

Fixed cost is $300.

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Answer:

The answer is 629,000.

Explanation:

  • For each unit of M sold, the price is 7 and the cost is 3, so the contribution margin is 4;
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  • For each unit of O sold, the price is 6 and the cost is 3, so the contribution margin is 3;
  • With the mix, 1 unit of sale contributes (contribution per mix) 3*M+1*N+2*O = 3*4+1*2+2*3 = 20

For covering the 340,000 of fixed costs, you have to sale 340,000/20 units. That's equal to 17,000 units.

Each unit of sales is equal to (price per mix) 7*M+4*N+6*O = 7*3+4*1+6*2 = 37. So, with 17,000 units, the total sales will be 17,000 * 37 = 629,000.

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3 years ago
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Marina CMI [18]

Answer:

Above the point bar

Explanation:

channelization

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Advantages of channelization

Improves rate of flow

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Reduces bank collapse

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Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

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