Answer:
the material cost per unit is $4.60 per unit
Explanation:
The computation of the material cost per unit is shown below:
= Total material cost ÷ equivalent units of material
= $86,940 ÷ (18,900 - 1,000) × 100% + 1,000 × 100%
= $86,940 ÷ (17,900 + 1,000)
= $86,940 ÷ 18,900
= $4.60 per unit
Hence, the material cost per unit is $4.60 per unit
The same should be considered and relevant
The producer surplus from selling the additional unit of the product given the selling price and the cost of production is $9.
<h3>What is producer surplus?</h3>
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. The least price the producer should be willing to collect is equal to the cost of production
Producer surplus = price – cost of proeuction
$10 - $1 = $9
To learn more about producer surplus, please check: brainly.com/question/15282739
Answer:
The correct answer is letter "D": the firm should change to a different line of business.
Explanation:
Economic profit is the difference between the revenue a firm earns from sales and the firm's total opportunity costs. It is important to distinguish between accounting profit and economic profit. Accounting profit is total revenue minus the explicit costs of producing goods or services. Economic profit includes the opportunity costs a company losses or gains by choosing a route to pursue revenue. If a firm has an economic profit of zero, it implies the company should start looking for alternative ways to generate income.
