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3 years ago

In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False

Business

1 answer:

Vinvika [58]3 years ago

8 0

Answer:

The answer is A. True.

Explanation:

Marginal Cost is the cost of producing one more product unit.

Marginal Cost = Average Total Cost / Average Goods Output

Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.

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The production department should generally be responsible for materials price variances that resulted from:

Romashka-Z-Leto [24]

Answer:

c. rush orders arising from poor scheduling.

Explanation:

3 0

3 years ago

Suppose that $2500 is placed in a savings account at an annual rate of 5%, compounded quarterly. Assuming that no withdrawals ar

babymother [125]

Answer:

number of periods = 8 years.

Explanation:

We know,

Future Value = Present value × $(1 + r)^{n}$

Here,

Present value = PV = $2,500

Future value = FV = $3,500

Interest rate (Compounding) = 5% = 0.05

We have to determine how many years (Periods) it will take, n = ?

Putting the values into the above formula,

$3,500 = $2,500 × $(1 + 0.05)^{n}$

or, $(1 + 0.05)^{n}$ = $3,500 ÷ $2,500

or, n log 1.05 = 1.4

or, n × 0.17609 = 1.4

or, n = 1.4 ÷ 0.17609

Therefore, number of years = 7.95 or 8 years.

5 0

3 years ago

The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $182 with a resulting contrib

k0ka [10]

Answer:

Year 3 cashflow:

current system: 243,360

alternative system: 102,240

Present cost:

current system PV -$971,665.9146

alternative system PV -$1,075,964.17

Explanation:

Current Scenario:

42,000 inspection cost

Repairs:

1,520 identified x $75 = 114,000

Refunds:

480 units x $182 = 87,360

Total yearly cost: 243,360

PV of an annuity of $243,360 during 5 years:

Present Value of Annuity

$C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 243,360

time 5

rate 0.08

$243360 \times \displaystyle \frac{1-(1+0.08)^{-5} }{0.08} = PV\\$

PV $971,665.9146

New Scenario:

Inspection cost: $42,000 + $25,000 = $77,000

Repair cost: 350 units x $41 = $14,320

Refunds: 50 units x $182 x 120% = $10,920

Total yearly cost: $102,240

F0 cost:

470,000 workers trainings

210,000 purchase cost

Total F0 cost: 680,000

Present Value of Annuity

$C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 102,240

time 5

rate 0.08

$102240 \times \displaystyle \frac{1-(1+0.08)^{-5} }{0.08} = PV\\$

PV $408,214.6742

PV of residual value:

PRESENT VALUE OF LUMP SUM

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 18,000.00

time 5.00

rate 0.08

$\frac{18000}{(1 + 0.08)^{5} } = PV$

PV 12,250.50

Net present value:

- 680,000 -408,214.67 + 12,250.50 = 1,075,964.17

4 0

2 years ago

Your primary motivation for investing is for tax savings. True or False

kipiarov [429]

False. Your primary motivation for investing is for tax savings. Your motivation for investing money shouldn't solely be a tax break, you should always have a plan. When you invest, you should be thinking of why, in the future, investing was a good idea. Not the current little but of tax break you can get if the money goes in tax free. Always have a plan and a reason for investing your money into something.

8 0

3 years ago

BP and Halliburton executives made the decision not to invest in the oil well blowout preventer that experts believe would have

Hoochie [10]

Answer:

relaxed avoidance.

5 0

3 years ago