Answer:
The total amount of cost that will be allocated from S2 to Department A is $32,200.
Explanation:
This can be calculated as follows:
Cost allocated from Department S1 to Department S2 = Direct department costs of Department S1 * Percentage of service to Department S2 = $200,000 * 15% = $30,000
Total Direct department costs for S2 = Direct department costs for S2 + Cost allocated from Department S1 to Department S2 = $16,000 + $30,000 = $46,000
Cost allocated from Department S2 to Department SA = Total direct department costs for S2 * Percentage of service to Department A = $46,000 * 70% = $32,200
Therefore, the total amount of cost that will be allocated from S2 to Department A is $32,200.
Answer:
d. where price is equal to average fixed cost.
Explanation:
Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.
Answer:
Price; marginal cost; cost minimizing; output; Cost of production or cost of inputs involved in production
Explanation:
In perfect competition a firm is in equilibrium when its marginal cost of production is equal to the price of its product. The firm will be able to maximize profit or minimize cost at this point.
The demand curve is a horizontal line, which means demand is perfectly elastic. A change in the price will cause the demand to become zero.
The cost mentioned here is the cost incurred to employ inputs in the process of production, which is an explicit cost.