Answer:
A. $869
Explanation:
If it charges a price below of their full cos and mark-up it wouldn't be able to sustain it in the long-term
When company's receive a one-time-only then, they may be willing to charge a lower price to cover a portion of their fixed cost when there is spare capacity but, in long-term they will have to charge at full cost else, they will lose money
<span>Given: -
Average variable cost/unit = $6
Average total cost/unit = $10
Units = 1000
To find: - Total fixed cost.
Solution:
Fixed cost = Total cost – Variable cost
Fixed cost = $10 - $6
Fixed cost = $4 = fixed cost per unit
Total fixed cost = $4*1000 =$4,000
Firm's total fixed cost is $4,000.</span>
When a lender charges interest, it is known as: A. Annual Percentage Rate (APR) The annual percentage rate is the rate of interest lenders such as credit card companies use when charging interest on borrowed funds from their users. The annual percentage rate is divided by the 12 months in the year and then charged each month on the finances that are not paid off.