Answer:
$650,857
Explanation:
The computation of the total cost is shown below:
Total cost = Variable cost + fixed cost
where,
variable cost for 7,100 units is
= total variable maintenance and repair cost ÷ activity level for 6,900 units × activity level for 7,100 units
= $408,756 ÷ 6,900 units × 7,100 units
= $420,604
And, the fixed cost is $230,253
So, the total cost is
= $420,604 + $230,253
= $650,857
Answer:
Explanation:
Firms are very large relative to the market- INCORRECT, this is a feature of Monopoly market.
Entering and exiting the market are relatively easy - CORRECT, new firms can freely enter the industry or in the long run, an existing firm can freely leave the industry.
Firms are price takers, or they have no control over price- CORRECT ,a single firm in a perfectly competitive market cannot influence the market price through its own independent action. Each firm sells its products at an existing market price.
Firms produce differentiated products- INCORRECT, this is a feature of an Oligopoly market.
Firms produce similar or standardized products- CORRECT, all products are homogeneous.
Firms have significant price control-INCORRECT, this is a feature of Monopoly market.
In order for you to find out if Amy will be a valuable new business contact, you need to ask her questions about her business and tell her what you need.
Answer:
Yes
Explanation:
In order for deciding whether the company should forward or not, we have to find out the net present value which is shown below:
Year Cash flows Discount factor Present value
0 -274000 1 -274000
1 68000 0.8696 59130.43
2 73000 0.7561 55198.49
3 76500 0.6575 50299.99
4 78000 0.5718 44596.75
5 82500 0.4972 41017.08
6 77000 0.4323 33289.22
Total present value 283531.97
Net present value 9531.97
Since the net present value comes in positive so the project should be accpeted
