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Ede4ka [16]
3 years ago
5

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently

$1.00 per poster. She has fixed costs of $250.00. Her variable costs are $1,500 for the first thousand posters, $1,200 for the second thousand, and then $800 for each additional thousand posters.
What is her AFC per poster if she prints 1,000 posters?
Business
1 answer:
V125BC [204]3 years ago
6 0
AFC mean average fixed costs. This is equal to total fixed costs divided by the amount of output. If the output is equal to 1000, then the AFC is

AFC = $250.00 ÷ 1,000
AFC = $ 0.25

I hope I was able to answer your question. Thank you and have a good day.
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Answer:

a. $8,000.

Explanation:

The computation of the amount of overhead cost assigned to the product I is shown below:

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Therefore the correct option is a.

7 0
3 years ago
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An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement

<h3>What is common-size statement?</h3>

An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement. Typically, this refers to overall earnings or total sales. Financial ratio analysis's objective is comparable to that of a common-size income statement. Items are shown as a percentage of a common base amount, such as total sales revenue, in a financial statement of common size. This kind of financial statement makes it simple to compare one company to another or different time periods within the same company.

The common-size statement refers to expressing each value as a percent of sales:

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income                 274                     8.234% (274 divided by 3340 times 100)

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To learn more about common-size statement refer to:

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5 0
1 year ago
Training is the hidden cost associated with ERP implementations that is considered the most under-estimated.
algol [13]

Answer:

TRUE

Explanation:

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Such training costs are sometimes as significant as 25% or more of the cost of the software and these costs are not included in the list price of the purchase of the ERP. Furthermore even when the training costs are estimated, they are often under-estimated as the number of users may increase with time as the organisation grows.

4 0
3 years ago
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vladimir1956 [14]
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3 0
3 years ago
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