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4 years ago

Why would a business continue to produce additional units of an item after the marginal cost begins to rise?

Business

2 answers:

densk [106]4 years ago

7 0

Answer:

To reduce overall production cost.

Explanation:

At a certain level of production, the benefit of producing one additional unit and generating revenue from that item will bring the overall cost of producing the product line down. The key to optimizing manufacturing costs is to find that point or level as quickly as possible.

lorasvet [3.4K]4 years ago

3 0

To increase their profit.

Even if the marginal cost is going up, as long as it is less than sales price the company can still make a profit. As the marginal cost continues to rise, that profit gets smaller and smaller but still exists and gives companies motivation to continue producing.

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3 years ago

Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders h

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Answer:

A) is not protected by the whistleblower statute because she failed to inform the proper party of the contract violation.

Explanation:

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3 years ago

What percentage of the 27.3 million businesses in the united states are small companies with less than 500 employees?

Strike441 [17]

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4 years ago

Chang Co. issued a $50,172, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the c

shusha [124]

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4 years ago

Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer with a fair value o

UNO [17]

Answer:

Dr Computer $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset $20,000

Cr Gain on disposal of truck (Balancing Figure) $800

Cr Cash Account $500

Explanation:

The disposal of a Fixed asset is a three step procedure and is given as under:

Remove the Accumulated depreciation and the cost of the fixed asset
Record the receipt of the consideration at Fair Value
Record the payment or receipt of the cash

Always remember that the balancing figure will go to Profit and loss statement.

Step1: Remove the Accumulated depreciation and the cost of the fixed asset

The asset value and the accumulated depreciation would be removed from the books of accounts and the balance figure would be transfered to profit and loss account.

Dr Accumulated Depreciation $18,000

Dr Profit & Loss Account $2,000

Cr Truck - Fixed Asset $20,000

Step2: Record the receipt of the consideration at Fair Value

Dr Computer - Fixed Asset $3,300

Cr Profit and Loss Account $3,300

Step3: Record the payment or receipt of the cash

The receipt of the payment will treated as:

Dr Profit and loss Account $500

Cr Cash Account $500

The aggregate Effect if I summarizee would be:

Dr Computer $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset $20,000

Cr Gain on disposal of truck (Balancing Figure) $800

Cr Cash Account $500

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4 years ago