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Neporo4naja [7]
3 years ago
6

Suppose that a firm produces 10 units of output. Its Average Variable Cost (AVC) = $25, Average Fixed Cost (AFC) = $5, and Margi

nal Cost (MC) = $30. The firm's ________.
a.) Total cost is $300

b.)Average total cost (ATC) is $60

c.) Average total cost (ATC) is $35

d.)Total cost is $30
Business
1 answer:
Andreyy893 years ago
3 0

Answer:

Total Cost  = $300

Average Total Cost = $30  

correct option is a.) Total cost is $300

Explanation:

given data

produces output = 10 units

Marginal Cost = $30

Average Variable Cost = $25

Average Fixed Cost = $5

solution

first we get here total cost that is

Total Cost = Total Variable Cost + Total Fixed Cost    .................................1

so here Total Variable Cost = Average Variable Cost × Output    

Total Variable Cost = $25 ×  10

Total Variable Cost =  $250

and total fix cost is = Average Fixed Cost × Output

total fix cost = $5 × 10 =

total fix cost = $50

so Total Cost is here

Total Cost  = $250 + $50

Total Cost  = $300

A) is correct

and

Average Total Cost will be

Average Total Cost = \frac{total\ cost}{out\ put}    ...................2

Average Total Cost = \frac{300}{10} = $30

Average Total Cost = $30  

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vladimir1956 [14]

Answer: Depreciation is tax deductible

Explanation:

Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.

Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.

3 0
2 years ago
Which of the following types of venue is favored by small-business retailers?
kondor19780726 [428]
The type of venue that small-business retailers favor is C.SPECIALTY SHOP.

Being in a specialty shop, your products will be prominently displayed and competition is minimal <span>compared to other given venues.

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8 0
3 years ago
Three years ago, Joe bought a 5-year, 10% coupon paid semiannually bond for $1000. Currently, with interest rates having risen s
ludmilkaskok [199]

Answer:

3.63%

Explanation:

Semiannual coupon payment

= $100 ÷ 2 = $50[($1,000 × 10%) ÷ 2]

The total number of compounding period = 2periods per year × 3 years = 6 periods.

By entering the following data on a financial calculator, rate is calculated as 1.81%.

Semiannual yield = 1.81%

Annual yield = 1.81% ×2 = 3.63%

3 0
2 years ago
West Company borrowed $36,000 on September 1, 2016 from the Valley Bank. West agreed to pay interest annually at the rate of 6%
Illusion [34]

Answer:

$720

Explanation:

Given that,

Principal = $36,000

Rate = 6% per year

Note issued by West carried an 18-month term.

Time period: 1st September to December = 4 Months

Interest expense = Principal × Rate × Time period

= 36,000 × 6% × (4 ÷ 12)

= $720

Therefore, the amount of interest expense appearing on West's 2016 income statement would be $720.

5 0
3 years ago
Cullumber Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $ 90
Llana [10]

Answer:

$102,080

Explanation:

Given that,

Service cost = $90,500

Interest rate = 9 %

Expected return on plan assets = $62,800

Prior service cost amortization = $10,300

Projected benefit obligation at January 1, 2017 = $712,900

Pension expense for the year 2017:

= Service cost + Interest cost - Expected return on plan assets + Prior service cost amortization

= $90,500 + ($712,900 × 9%) - $62,800 +  $10,300

= $90,500 + $64,080 - $62,800 +  $10,300

= $102,080

8 0
2 years ago
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