1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yKpoI14uk [10]
3 years ago
9

The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of $110,000 and its lo

west level of production in November when they produced 2,500 units at a total cost of $87,500. Using the high-low method, the estimated variable cost per unit is $
Business
1 answer:
Sati [7]3 years ago
7 0

Answer:

$15

Explanation:

The computation of the estimated variable cost per unit by using high low method is shown below:

Variable cost per unit = (High total cost - low total cost) ÷ (Highest level activity  - lowest level activity)

= ($110,000 - $87,500) ÷ (4,000 units - 2,500 units)

= $22,500 ÷ 1,500 units

= $15

By applying the above formula we easily find the estimated variable cost per unit

You might be interested in
What were the economic changes that revolutionized manufacturing in the eighteenth century and led to the factory system?
Daniel [21]

Answer:

The industrial revolution affected the whole global economy, social relations, and culture.

The industrial revolution changed how goods were manufactured, and it all started with the European accumulation of capital and the invention of the steam engine.

The two major sources of energy were coal and oil that were used to power steam engines that moved machinery using water steam. That led to work specialization and urbanization (people moving into large urban areas).

The industrial revolution first started in northwestern Europe, but it then spread to the US, Russia and Japan. The global economy developed new patterns of global trade and production between nations that produced resources and those that processed them and produced goods.

Exporting economies grew around the world because of the need for exporting both raw materials and food supplies from resource producing nations, and the need for exporting finished goods form industrialized nations.

7 0
3 years ago
discuss the influences of supply and demand in your daily life. describe one good and one service you use daily, and describe th
tester [92]

Answer:

I use coffee daily. The supply for the coffee I bought (Colombian Coffee) is few then the price is expensive.  As the price is expensive I can only buy 2 pounds of this item per month. My demand is affected for the price that producers set to this coffee. I would like to buy more but then the supply of this product is limited therefore the prices will always be high.

7 0
3 years ago
Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a
irga5000 [103]

Answer: Option (d) is correct.

Explanation:

Correct Option: Marginal revenue equals marginal cost.

Pure monopoly is a market situation in which there is a single firm who are producing the goods and these goods are the close substitute. There is no other firm in the market. So, the monopoly firm is the price setter.

The output level that is produced by the profit maximizing monopoly firm is at a point where marginal revenue is equal to the marginal cost. It is the same profit maximizing condition that a competitive firm also utilize to find their equilibrium level of output.

3 0
3 years ago
While it sounds reasonable that companies should focus on making the products it knows how to make really well, one downside of
borishaifa [10]

Answer:

Customer may not want the product which the company is making well.

Explanation:

It is not necessary that market needs those products which the company is producing perfectly. It cannot enter into product differentiation and cannot meet customer demands and needs of specific or altered products. The company can achieve specialization and can be a niche player in the market but also on the other hand company’s business is limited to only few products at which it is perfect. It cannot allow customization to its products.

6 0
3 years ago
Imagine that you are the CEO of Wal-Mart. Pick three ways discussed in this section to explain how you would improve customer se
iren [92.7K]

Answer:

make sure workers aren't slacking and helping customers

4 0
3 years ago
Other questions:
  • What type of a goal is graduating from college in four years? (I forgot the attachment from last question)
    12·2 answers
  • When energia, a soft drink manufacturer, seeks to use viral ads on the internet to introduce its new beverage to the consumers e
    10·1 answer
  • Increased demand for product A increases the demand for resources used to produce product A. What is the best explanation for th
    15·1 answer
  • A 401(k) plan is a type of _____
    8·2 answers
  • Which of the following is NOT a leading reason that employees resist change? Multiple Choice fear of failure individual predispo
    9·1 answer
  • Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $92,30
    12·2 answers
  • Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships
    6·1 answer
  • A competitive market is a market in which
    13·1 answer
  • Assume that Amazon sells the MacBook Pro, a computer produced by Apple, for a retail price of $1,500. Amazon arranges its operat
    15·1 answer
  • Roman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $40,000
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!