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Orlov [11]
3 years ago
14

Unlike in the case of constant costs, increasing-cost conditions correspond to a ________________ production possibilities front

ier (PPF). This indicates that the marginal rate of transformation __________ in response to movements along the PPF.
Business
1 answer:
umka2103 [35]3 years ago
7 0

Answer:

bowed-out, varies

Explanation:

  • The downwards pointing of the slope of the production curve is an implication of scarcity and this shape is a result of the allocation of the resources that are based on the comparative advantage and such as an allocation implies the opportunity costs with the holders.
  • <u>The rate of the transformation can be explained as many units of goods have been produced in order to make an extra unit of a good and it varies in the movement along the PPF curve.</u>
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Estrada Corporation produced 300,000 watches that it sold for $35 each. The company determined that fixed manufacturing cost per
Advocard [28]

Answer:

Variable cost per unit = $12

The total variable cost = $3,600,000

The total contribution margin = $6,900,000

Explanation:

Number of units produced = 300,000

Selling cost = $35

Revenue = 300,000 × $35

               = $10,500,000

Fixed cost = $14 per unit

Total fixed cost = 300,000 × $14

                          = $4,200,000

Gross margin = $2,700,000

Gross margin is the difference between the Revenue earned and the total cost.

Total cost = $10,500,000 - $2,700,000

                 = $7,800,000

Total cost = Total Fixed cost + Total variable cost

Total variable cost = $7,800,000 - $4,200,000

                               = $3,600,000

Variable cost per unit is the ratio of the total variable cost to the number of units produced.

Variable cost per unit = $3,600,000/300000

                                    = $12

Total contribution margin is the difference between the total revenue and the total variable cost.

Total contribution margin = Total revenue - Total variable cost

                                           = $10,500,000 - $3,600,000

                                           = $6,900,000

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3 years ago
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