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Andrej [43]
4 years ago
12

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of

output for $25. If the price of dynamite drops to $10, should Acme Dynamite continue to operate in the short run?
Business
1 answer:
DaniilM [7]4 years ago
7 0

Answer:

The firm will continue to produce in the short run.

Explanation:

Given the number of units produced by Acme Dynamite = 250 units.

The variable cost of producing the 250 units = $2000

The fixed cost = $500

The selling price = $25 per unit.

The new price after the fall in price = $10

Total revenue from the selling of 250 units = 250 × 10 = $2500

Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.

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What is the best online marketing service provider around the world?
SIZIF [17.4K]

Answer:

Let me name a few...

Explanation:

1.Digital Marketing Agencies in USA

2.Digital Marketing Agencies in UK

3.Digital Marketing Agencies in Australia

4.Digital Marketing Agencies in Canada

5.Digital Marketing Agencies in Netherlands

6.Digital Marketing Agencies in India

hope this helped :)

3 0
3 years ago
L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia
Arlecino [84]

Answer:

<em><u>It would generate a financial disadvantage for 62,800</u></em>

Explanation:

\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]

It would generate a financial disadvantage for 62,800

Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.

5 0
3 years ago
Congress would like to increase tax revenues by 11.5 percent. assume that the average taxpayer in the united states earns $62,00
cricket20 [7]
<span>An increase of 11.5 percent is the same as multiplying by 1.115. Since the current rate is 10 percent, an 11.5 percent increase would be:
10 percent x 1.115 = 11.15 percent.</span>
8 0
4 years ago
The overall attractiveness of a foreign market depends on the risks and rewards of conducting business in the country of interes
zvonat [6]

Answer:

Legal

Explanation:

Legal risk is a risk that financial or reputation loss may arise from lack of awareness or misinterpretation of the laws and regulations that apply to a business. Different countries are governed by different laws and regulations. Therefore, there will be a legal risk in operating a business in different foreign countries.

6 0
3 years ago
The accounting equation can be stated as
Alexxx [7]

Answer:

a

Explanation:

a

4 0
4 years ago
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