In this situation, the Average fixed cost wll be INCREASED.
AFC (average fixed cost) is calculated by adding up all total fixed cost within a certain period and divide it with the total years. If a business experienced an increased in any way to its fixed cost, the average will automatically increased.
Answer:
The maximum transfer price would be $50.
Explanation:
The maximum transfer price is nothing but the market price for the product , which is the most simple way to derive a transfer price . Here by selling the components of aircraft engines at market price, there are very good chances of high profits to be earned. So the maximum transfer price should be $50.
Answer: Performance risk
Explanation:
Performance risk can be defined as the concern or risk that a person has when acquiring service and that it does not work effectively. A person may have a concern of not knowing if what he is going to acquire is going to work in the desired way, this is the fear presented by Kathy. Kathy has already had a bad experience regarding her hair, where she has not received the best service in terms of haircuts. After she moved to a new city, she started researching where it can get a good haircut. While it is true that she may find someone who does it well, Kathy still has concerns that it may not look good because of her past experiences.
Answer:
The total standard allowed input quantity given the good output produced is 15,800 pounds.
Explanation:
From the question, for every 4 pounds of material input, 1 pounds of styrofoam sheets is manufactured. This means that to produce x pound of good sheet, 4 times x material input would be required.
Therefore for the company to have produced 3,950 pounds of good sheets,
The material input
= 4 × 3950
= 15,800 Pounds
The company would have used 15,800 Pounds to produce 3950 pounds of good sheets. As such, the total standard allowed input quantity given the good output produced is 15,800 pounds.
