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nadya68 [22]
3 years ago
11

A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor

is $500,000. If it is to increase production by 5,000 and that requires and additional labor and raw material expense of $100,000. What is the cost per shirt before the increase in production?a. $5b. $10c. $20d. $50e. $100
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer:

b. $10

Explanation:

The computation of the cost per shirt is shown below:

= (The cost of its factory, raw materials, and labor) ÷ (production level)

= $500,000 ÷ 50,000 shirts

= $10

Since we have to compute the cost per shirt before the increase in production level so we do not consider the increased production level and increase labor and raw material expense.

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Answer:

The answer is B.

Explanation:

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In monopolistic firm, no one is competing against him. He is the only one in the industry. He is the only seller while buyers are many. In most cases, buyers do not have alternative than to buy the product. Because of this, the firm in monopoly sets its price. He is a price-maker.

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1 year ago
Which of the following is true of the maturity stage of the product life cycle?a) Harvesting is a strategy that is widely used b
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