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Mars2501 [29]
3 years ago
5

For planning control, and decision-making purpose:

Business
1 answer:
dolphi86 [110]3 years ago
8 0

Answer:

D) mixed costs should be separated into their variable and fixed components

Explanation:

A mixed cost is a cost that contains both a fixed cost component and a variable cost component. It is important to understand the mix of these elements of a cost, so that one can predict how costs will change with different levels of activity. Typically, a portion of a mixed cost may be present in the absence of all activity, in addition to which the cost may also increase as activity levels increase. As the level of usage of a mixed cost item increases, the fixed component of the cost will not change, while the variable cost component will increase. The formula for this relationship is

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7. Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to r
valentinak56 [21]

Answer:

Explanation:

1) The total cost of reducing runoff if the farmers are not allowed to trade permits is:

total loss = farmer A' loss + farmer B's loss

where:

  • farmer A's loss = (100 - 50) x $25 = $1,250
  • farmer B's loss = (100 - 50) x $50 = $2,500

total loss = $1,250 + $2,500 = $3,750

2) The total cost of reducing runoff if the farmers are allowed to trade permits is:

Since farmer A will be willing to sell his permits to farmer B for a price that is ≥ $25 and ≤ $50, the total cost of reducing runoff is $2,500.

If farmer A sells his runoff permit at a price higher than $25 his costs will decrease but farmer B's costs will increase, so any gain due to price change is offset by the other farmer's loss.  

8 0
4 years ago
When an administrative assistant reorders office supplies for a business, placing the same order as last month without checking
belka [17]

Answer:

The correct answer is straight rebuy.

Explanation:

The straight buyback is a routine, low participation purchase. A minimum of information is needed and consideration of alternatives is not necessary. This type of purchase is handled by the purchasing department and is usually acquired from a list of approved suppliers. Examples of straight repurchase are repeating purchases of office supplies, and small parts.

4 0
3 years ago
Cindy's car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes
Ivanshal [37]

The correct option is b. the firm's total cost $500.

Total cost:

Total fixed costs are the total of all recurring, fixed costs that a business incurs.

The variable and fixed expenses of providing commodities are combined to create a total using the total cost formula. The equation is:

Total cost = (Average fixed cost x average variable cost) × Number of units produced.

Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes).

The firm's total cost is

AFC = $3, AVC = $2

Average total cost = AFC + AVC = $5

It produces 100 units

$5 × 100= $500

Therefore, option b is the answer $500.

Learn more about total cost here brainly.com/question/25369053

#SPJ4

6 0
2 years ago
Jamie purchased a 50% general partnership interest in Partnership M for $40,000 in Year 1. To finance operations, Partnership M
klio [65]

Answer:

$90,000

Explanation:

Calculation to determine what Jamie’s at-risk limitation on losses is:

Using this formula

Risk limitation on losses=[Partnership M +(General partnership interest× Recourse debt agreement)]

Let plug in the formula

Risk limitation on losses= [$40,000 + (50% × $100,000)]

Risk limitation on losses=($40,000+$50,000)

Risk limitation on losses=$90,000

Therefore Jamie’s at-risk limitation on losses is:$90,000 and the reason why Jamie’s at-risk limitation on losses was the amount of $90,000 was because of his share of the recourse debt of the amount of $100,000 as well as the cash amount of $40,000 he invested.

4 0
3 years ago
Assume that you have an outstanding 100M loan with your bank under which you pay 5% fixed rate. Assume also that you have entere
Mazyrski [523]

Answer:

You will end up with 1% or 100 basis points + LIBOR floating rated loan      

Explanation:

You will have to pay interest on loan at a fixed rate of -5%  

transaction with the Swap dealer      

you will have to pay dealer LIBOR that is   -LIBOR  

(Payment is to be outflow so the negative sign is used)      

     

Dealer will pay and you will receive    fixed +4%  

Net interest = -5%-LIBOR+4%      

-1%- LIBOR      

So the Net effect is that you will end up with 1% or 100 basis points + LIBOR floating rated loan      

     

8 0
3 years ago
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