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defon
3 years ago
8

Within the relevant range of activity ______. variable costs do not change in total, only per unit fixed costs remain constant i

n total costs and activity can be approximated by a straight line
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

False

Explanation:

Within the relevant range of activities, total fixed costs remain constant and fixed costs per unit decrease as total output increases. Total variable costs vary depending on total output, but variable costs per unit should remain constant.

On a long term basis, all costs are variable, that is why it is important to consider the range of activities, i.e. output levels.

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If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
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Answer: B. The firm hires 45 workers and earns a $1200.00 Economic Profit

Explanation:

According to the table, when the Market Equilibrium Wage Rate is $105, the number of workers to hire would be 45 and the revenue would be $7,425.

If 45 workers are hired, they would cost:

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Added to the fixed cost, the total cost would be:

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The profit would be:

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3 years ago
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Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its aver
blsea [12.9K]

Answer:

$12.45

Explanation:

Calculation to determine what the contribution margin per unit sold is closest to:

First step is to calculate the Variable cost per unit using this formula

Variable cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Sales commissions per unit + Variable administrative expense per unit

Let plug in the formula

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Let plug in the formula

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Contribution margin per unit = $12.45

Therefore the contribution margin per unit sold is closest to:$12.45

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3 years ago
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