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sleet_krkn [62]
2 years ago
15

Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per month. Cindy's monthly total fixed costs

are $500, and her monthly total variable costs are $2,500. If for some reason Cindy's fixed cost fell to $400, then her:________.
Business
1 answer:
leonid [27]2 years ago
6 0

Answer:

average fixed costs per unit would decrease.

Explanation:

Currently Cindy's monthly total fixed costs = $500, and since it produces 100 units per month, the average fixed costs per unit = $500 / 100 units = $5 per unit.

If fixed costs fell to $400, then the average fixed costs per unit = $400 / 100 units = $4 per unit.

While her average variable costs remain the same = $2,500 / 100 units = $2.50 per unit

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Answer:

Net Fixed Assets remains fixed

Explanation:

The reason is that the company will not desire to increase its investment if the net fixed Assets does not increases the production capacity so the net fixed assets will remain the same for period. The depreciation will be the same for the year required it is not production dependant. Net fixed assets also doesn't changes with the changes in production and debt to equity level. It remains fixed for the period.

7 0
3 years ago
Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit
OLEGan [10]

Answer:

$7.79

Explanation:

The price level that should be choose in order to maximize the profit is $7.79

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here the price fixing is $10 so the price level would be less than the rivalr price and more than the marginal cost

Therefore it is $7.79

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2 years ago
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Delvig [45]

Answer:

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3 years ago
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