Ask question

Ask question

All categories

2 years ago

10

Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000

after deducting variable costs of $75,000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 18,000 units would be:

1 answer:

Arisa [49]2 years ago

5 0

Answer:

Total variable cost= 90,000

Total fixed costs= 8,000

Total costs= $98,000

Explanation:

Giving the following information:

Production of 15,000 units:

Fixed costs= $8,000

Total variable cost= $75,000

We have no reason to believe that the fixed costs will change. If 18,000 units remain in the relevant range, the fixed costs are constant.

<u>We need to calculate the unitary variable cost:</u>

Unitary variable cost= 75,000/15,000= $5

Now, for 18,000 units:

Total variable cost= 5*18,000= 90,000

Total fixed costs= 8,000

Total costs= $98,000

You might be interested in

When a firm expects rapid imitation of its core technology by competitors, what should it do? A. Revert to old technologies B. O

Flura [38]

Answer:

C. License its technology as rapidly as possible to foreign firms.

Explanation:

When you are expecting other firms or your competitors to follow you or imitate your technology then it is the right time to license your technology so that one cannot use it without permission. This would not only help the firm stabilize and work efficiently as compared to its competitors, but will also be a way of earning big profits as compared to its peers.

Good luck buddy.

5 0

2 years ago

Read 2 more answers

Businesses in america will spend approximately $600 ____________ on hardware, software, and telecommunications equipment in 20

Aleksandr-060686 [28]

The answer that would best complete the given statement above would be the term "billion". <span>Businesses in America will spend approximately $600 BILLION on h</span><span>ardware, software, and telecommunications equipment in 2015. Hope this answers your question. Have a great day ahead!</span>

5 0

2 years ago

Households and firms with savings lend money to banks and other financial institutions. The credit supply curve shows the relati

Varvara68 [4.7K]

Answer:

B and C only.

Explanation:

The options of this question wasn't provided. Here are the options:

A.

higher real interest rate induces more investment.

B.

higher real interest rate discourages current consumption.

C.

higher real interest rate encourages more saving.

D.

all of the above.

E.

B and C only.

It is assumed that households either spend disposable income on consumption or savings. If interest rate is high, it would encourage households to save instead of spending on consumption. The same argument extends to firms.

This explains why the credit supply curve is upward sloping or positively sloped, the higher the interest rate, the higher the savings rate and the higher the credit supply. Conversely, the lower the interest rate, the lower the savings rate and the lower the credit supply.

I hope my answer helps you

8 0

2 years ago

Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price

Kipish [7]

Answer:

p1 = $259.53 p2 = $381.20

Explanation:

1. Find the revenue function.

This is a typical income maximization problem. Therefore, the first thing we should know is what are the revenues for each product.

Recall that the revenue is given by P * Q

1.a Find the revenue of the Ultra Mini (product 1):

$R_{1} = P_{1} Q_{1}$

$R_{1} =P_{1} (100,000 - 200P_{1} + 10P_{2} )$

$R_{1} =100,000P_{1} -200P_{1} ^{2} +10P_{2}P_{1}$

1.b Find the revenue of the Big Stack (product 2):

$R_{2} = P_{2} Q_{2}$

$R_{2} =P_{2} (150,000 + 10P_{1} - 200P_{2} )$

$R_{2} = 150,000P_{1+2} +10P_{1}P_{2} -200P_{2}^{2}$

2. Find the marginal revenues.

The revenue function must be derived from the price.

For product 1, we derive from P1:

$MR_{1} = 100,000 -400P_{1} +10P_{2}$

For product 2, we derive from P2:

$MR_{2} = 150,000 + 10P_{1} - 400P_{2}$

3. Create a system of linear equations in two unknowns

With the marginal revenue functions we create a system of linear equations in two unknowns (p1 and p2) and equal 0.

$100,000 - 400P_{1} +10P_{2} = 0\\150,000 + 10P_{1} -400P_{2} = 0$

4. Resolve the previous system

4.a. To make it easier, we can rethink the terms of the system like this:

$100,000 - 400P_{1} +10P_{2} = 0$ is the same as saying:

$P_{2} = \frac{-100,000 + 400P_{1} }{10}$

And $150,000 + 10P_{1} -400P_{2} = 0$ is the same as saying:

$P_{2}=\frac{150,000+10P_{1} }{400}$

Therefore:

$\frac{-100,000 + 400P_{1} }{10} =\frac{150,000+10P_{1} }{400}$

Notice that now we only have one unknown (P1).

4.b. In order to eliminate fractionals, we can multiply both terms by 400:

$\frac{400}{10} (-100,000 + 400P_{1} ) = \frac{400}{400} (150,000 + 10P_{1} )$

$(40)(-100,000+400P_{1}) =150,000+10P_{1}$

$-4,000,000+16,000P_{1} =150,000+10P_{1}$

4.c. We solve the equation, putting numbers on one side and unknowns on the other:

$-4,000,000-150,000=10P_{1} -16,000P_{1}$

$-4,150,000=-15,990P_{1}$

$\frac{-4,150,000}{-15,990} =P_{1}$

$P_{1} = $ 259.53$

4.d. Once P1 has been identified, we replace it in any of the terms of the original system of equations (those established in 4.a).

$P_{2}= \frac{-100,000+400(259.53)}{10}$

$P_{2} = 381.20$

5 0

2 years ago

Imagine that you are the manager of valley skateboard shop. the accountant for the business has delivered the news that sales ar

Gekata [30.6K]

Answer:

what I think is that it should decrease by 50%

Explanation:

why do I think that I think that because every one needs a discount

8 0

2 years ago