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3 years ago

Average fixed costs for a given level of output can be determined graphically by:

Business

1 answer:

Nadya [2.5K]3 years ago

8 0

Answer:

The correct answer to the following question is option D) the vertical distance between ATC ( Average total cost ) and AVC ( Average variable cost ) .

Explanation:

AFC which is know as average fixed cost , can be taken out by dividing the total fixed cost from the total number of units produced. In the earlier phase , for the given number of units produced, both AVC and AFC curve would decrease, which would ultimately lead to fall in ATC. But when the units increase , the AVC would start to rise but AFC is still falling and due to this ATC would sill fall , because fall in AFC is still greater than rise in AVC . As output further rises , the AVC would keep on rising and would finally offset fall in AFC and ATC would also start rising. Therefore AFC would be determined by vertical distance between ATC and AVC.

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Question 14 of 20

charle [14.2K]

Answer:

Explanation:

8 0

3 years ago

A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bag

xz_007 [3.2K]

From the production plan, the budget for January is $12800, February, $16250, March $17175, April $20875, May $16900, and June $16900.

Production planning simply means the act of designing a guide for the production of a particular good or service.

It should be noted that production planning is important to ensure that all necessary preparation is completed before the start of a production cycle.

Learn more about production on:

brainly.com/question/4139284

3 0

2 years ago

A financial analyst is in the process of reviewing four investments projects for one of his clients. The net present cash values

inysia [295]

Answer:

Consider the following calculation

Explanation:

All projects having positive NPVs, thus all projects are feasible.

(All figures are in $' million)

Funds required to invest in all projects are

First year = 6 + 2 + 4 + 10 = 22 & available fund for first year is only 20.

Second year = 8 + 4 + 8 + 6 = 36 & available fund for second year is only 13.

In these type of situations we use Profitability Index to decide which projects are selected and which are to be skipped.

Profitablilty index = PV of cash inflow/ PV of cash outflows

But in this such information is not given to calculate Profitability index, thus we are calculating here NPV per One $ of investment.

thus NPV per One $ of investment = NPV of project / Investment in Project

Note: We are taking here value of investment in project for both two year with out taking effect of time value of money as no discount rate is provided in the question.

CHECK THE EXCEL ATTACHED

Total fund available with investor = 20+13 = 33

Total fund required for Project 4 & Project 1= 16 + 14 =30

thus he can invest in only project 4 & Project 1, for investing in next profitable project i.e. project 2 he requires $6 million but he has only $3 million in his hands.

Thus the optimal solution for the client is to invest in Project 4 & Project 1.

Thus Funds available in first year = 20, Investment in First year = 10+6 = 16, Funds remains in hand =4

Funds available in second year = 4+ 13= 17, Investment in second year =6+8= 14, funds remains in hand = 3

NPV from total investment = 80 + 50 = 130

Download xlsx

5 0

3 years ago

The risk that actual returns will not match or exceed expected returns is called:________a. investment risk. b. asset class risk

Alex73 [517]

Answer:

a. investment risk

Explanation:

Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".

Investment risk: We can define it as the inappropriateness between the actual and expected returns. Because on this type of risk, there may be occurrence of any losses with some probability or likelihood which will be relative the expected return.

Asset class is about the grouping process of investments which have some mutual or similar characteristics. The risk on this case is something has relative elasticity compared to another investment in the market. Usually, there is 3 groups of asset classes: equities, bonds and money market instruments.

The market risk which is called sometimes as systematic risk. This risk consider the entire market and has effects on this scale. The investor who undertook this risk will see that the factors which affect the overall performance of the whole marketplace.

Opportunity cost is the cost when you have purchased, chose or bought the product compared to another product. However, you will notice that if you buy another one you will get more value or consumer surplus but you have just bought and you missed chance. This is the opportunity cost

8 0

3 years ago

Lizzie Corporation has provided the following information about one of its laptop computers: Date Transaction Number of Units Co

hoa [83]

Answer:

the ending inventory using the FIFO cost flow assumption is $282,900

Explanation:

The computation of the ending inventory using the FIFO cost flow assumption is shown below;

But before that first we have to determine the ending inventory units i.e.

= 280 + 380 + 480 + 290 - 1,200

= 230 units

So, the ending inventory is

= 230 units × $1,230

= $282,900

Hence, the ending inventory using the FIFO cost flow assumption is $282,900

8 0

3 years ago