1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rama09 [41]
3 years ago
8

Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, resort area d

uring their summer break. This is an alternative to summer employment with a local firm, where they would each earn $6,000 over the three-month summer period. A fully equipped facility can be leased at a cost of $8,000 for the summer. Additional projected costs are $1,000 for insurance and $3.20 per unit for materials and supplies. Their fruit smoothies would be priced at $5 per unit.
a. What is the accounting cost function for this business?
b. What is the economic cost function for this business?
c. What is the economic breakeven number of units for this operation?
(Assume a $5 price and ignore interest costs associated with the timing of lease payments.)
Business
1 answer:
Leviafan [203]3 years ago
8 0

Answer:

a. 8,000 + 1,000 + 3.2Q

b. 27,000 + 3.2Q

c. 15,000 Units

Explanation:

a. The accounting cost function is shown below:-

Accounting cost function = Fixed Leasing and insurance cost + material cost and supplied cost

= 8,000 + 1,000 + 3.2Q

b. The economic cost function is shown below:-

Economic cost function  = Accounting cost + Opportunity cost

= 9,000 + 3.2Q + 3*6,000

=27,000 + 3.2Q

c. The computation of break even point is shown below:-

Break even Point = Total Fixed Cost ÷ Price - Average Variable cost

= 27,000 ÷ 5 - 3.2

= 15,000 Units

You might be interested in
A contract is said to be implied if the A. Seller signs a listing agreement B. Buyer signs a buyer representation agreement C. p
TiliK225 [7]

Answer:

D. agreement of the parties is demonstrated by their acts and conduct

Explanation:

An implied contract is a contract that exists based on the actions of those involved. Though it is not a written or spoken contract, it is just as legal. A contract is assumed to exist based on the behaviors of the parties to it.

8 0
3 years ago
To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory
Lina20 [59]

The method used to calculate direct materials on the schedule of cost of goods manufactured is this: add purchases to beginning raw materials inventory and subtract <u>Cost of the </u><u>ending </u><u>raw materials. </u>

<u />

<h3>How to calculate direct materials</h3>

The formula used to calculate direct materials on the schedule of cost of goods manufactured is this: Beginning raw materials + Purchases - Cost of the ending raw materials.

This figure is important because it can be used to calculate the total manufacturing cost incurred during production.

Learn more about direct materials here:

brainly.com/question/26245657

8 0
2 years ago
Sam wants to grow in his current role, and he decides to take a three-month skill enhancement course. Sam is demonstrating .
Shtirlitz [24]

Answer:

Selfmanagment skills

Explanation:

I had the same question

3 0
2 years ago
In order for a driver to graduate from a learner’s license to an operator’s license, how many hours of driving need to be docume
Harman [31]
Must have drove 50 hours on a learners permits, 10 of which are at night.
4 0
3 years ago
A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities a
IRINA_888 [86]

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections.  The operating activities section show the cash flows from the normal business of the enterprise.  The investing activities section shows the acquisition and disposal of investments made by the company in cash.  While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

4 0
3 years ago
Other questions:
  • What are some characteristics of a wise money manager
    13·1 answer
  • The single most important reason for investing is for _________.
    7·1 answer
  • Which title is an example of top management?
    7·2 answers
  • Charlotte was born to a lower class family in rural pennsylvania. after taking a job in the mail room of a large corporate offic
    7·1 answer
  • Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is
    8·1 answer
  • stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant
    14·2 answers
  • Since stocks can be traded online, which purpose is best served by markets?
    11·1 answer
  • Discounting a stream of benefits is defined as
    10·1 answer
  • If the stock of money is $250 billion, velocity is 5, and the price level is 10, what is real output
    5·1 answer
  • Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for 50 per unit. Varia
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!