Answer:
b. Continue operating as the firm is covering all the variable costs and some of the fixed costs
Explanation:
A firm should shutdown operations if its price is less than average variable cost.
The price the firm sells is $15
Average variable cost is $10.
Price is greater than average variable cost in excess of $5.
The $5 covers some of the average fixed cost.
I hope my answer helps you
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The variable costs are $4.50 per unit. London Plastics sell 15,000 units.
To calculate the total variable costs we need to use the following formula:
Total variable cost= unitary variable cost* total amount of units
Total variable cost= 4.5*15,000= $67,500
C because it’s something you pay every month
Answer:
It is an indicator of efficiency
Explanation:
A Country's employment rate indicates how much population is producing, therefore the jobless claims is an indicator tat shows how efficient is the economy.
Answer:
Explanation:
Adams division:
Net income - 605000
Minimum acceptable income = [Total capital employed*Rate of return] = 4000000*0.08=320000
Residual income= NI-Minimum acceptable income=605000-320000=285000
Jefferson division:
Net income - 315000
Minimum acceptable income = [Total capital employed*Rate of return] = 3250000*0.08=260000
Residual income= NI-Minimum acceptable income= 315000-260000= 55000
