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GuDViN [60]
3 years ago
10

Consider the statement: "Even if a firm is losing money, it may be better to stay in business in the short run." This statement

is true, if the loss is less than variable costs. false, because it could be better to stay in business in the long run. false, because a firm should only operate if it is making money. true, if the loss is less than fixed costs. b. The firm should produce in the short run as long as price is less than the average fixed cost. exceeds the average variable cost. is less than the average variable cost. exceeds the average fixed cost.
Business
1 answer:
IRINA_888 [86]3 years ago
4 0

Answer:

if the loss is less than fixed costs

Price exceeds the average variable cost.

Explanation:

If a business is making losses and wants to shut down operations, it will need to keep paying the fixed cost component.

In a case where the loss made from running the business is less than the fixed cost that will be incurred, it is better for the business to keep producing in the short run. The cost of closing up will be higher.

Also the business should stay open if the price of a product is higher than its average variable cost. This is because as production increases the positive contributing margin will eventually exceed cost incurred. This can be achieved by scaling production upward.

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Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $182,000
MrRa [10]

Answer:

Total cost= $18,200

Explanation:

Giving the following information:

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $182,000 a year. It is estimated that these employees move 620,000 pounds of material per year. 62,000 pounds are moved in March.

Proportion for March= 62,000/620,000= 0.1

Total cost= 182,000*0.1= 18,200

5 0
3 years ago
If real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had incre
Sphinxa [80]

Answer:

10%; 16%

Explanation:

Given that,

Real GDP in the first quarter of 2016 = $10 billion

Real GDP in the first quarter of 2017 = $11 billion

Increased from the fourth quarter of 2016 to the first quarter of 2017 = 4%

Growth rate from the first quarter of 2016 to first quarter of 2017:

= \frac{GDP_{2017}-GDP_{2016}  }{GDP_{2016}}\times 100

= \frac{11-10  }{10}}\times 100

= 10%

Real GDP growth rate is as follows:

= 4% × 4

= 16%

3 0
3 years ago
assey Corporation purchased a piece of land for $50,000. Massey paid attorney's fees of $5,000 and brokers' commissions of $4,00
aleksley [76]

Answer:

$60,500

Explanation:

The cost of the land to be recorded consist of the cost of the land itself and other associated cost with the purchase.

The amount realized as income in the process is deducted from the cost.

Cost of land

= $50,000 + $5,000 + $4,000 + $2,000 - $500

= $60,500

3 0
3 years ago
Suppose you are a leader responsible for an organization’s vision/mission statements. How often do you think they should be chan
Roman55 [17]

Explanation:

Vision and mission statements are extremely important for a company to convey its core values ​​to its employees, suppliers and customers. They help communicate the company's identity and provide direction and set goals that are fundamental to organizational success. They are considered the basis of an organization, <u>so it is not recommended that changes in vision and mission are frequent</u>, the reasons that justify the change <u>would be the change of the organizational focus and the evolution of the organizational objectives and expansion of the target audience.</u>

8 0
3 years ago
Direct labor and overhead costs incurred to change raw materials into finished products are known as
san4es73 [151]

Answer:

conversion costs

Explanation:

5 0
2 years ago
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