The market price of an asset is determined by the forces of supply and demand; the price at which quantity supplied equals quantity demanded is the markets price.
In order to determine average variable cost, the firm's variable costs are divided by the amount of output.
<h3><u>
What is average variable expense formula?</u></h3>
The variable cost per unit in economics is the average irregular cost. By dividing the overall variable cost by the output, one may get the average variable cost. In the near term, the businesses utilize the average changing cost to choose when to end their presentation.
<h3><u>How do you calculate variable cost examples?</u></h3>
More specifically, the two primary categories of variable costs—total labor costs and total material costs—combine to form unstable costs. As an alternative, variable costs may be calculated by dividing the cost per unit by the overall quantity produced.
To view more questions on quantity of output, refer to:
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Answer:
$5,225,417
Explanation:
first payment 800000
1 quarter 250000
2 quarters 254000
3 quarters 258064
4 quarters 262193
5 quarters 266388
6 quarters 270650
7 quarters 274981
8 quarters 279380
9 quarters 283851
10 quarters 288392
11 quarters 293006
12 quarters 297694
13 quarters 302458
14 quarters 307297
15 quarters 312214
16 quarters 317209
17 quarters 322284
18 quarters 327441
19 quarters 332680
20 quarters 338003
11% = (1 + i/4)⁴
i = 0.106
quarterly interest = 2.65%
Now we need to determine the present value of this annuity and our discount rate is 2.65%. I will use an excel spreadsheet to determine the present value of the 20 quarterly payments and then add the initial payment.
$4,425,417 + $800,000 = $5,225,417
The excel function for monthly payments is =PMT()
The excel function for cumulative total interest is =CUMIPMT()
