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sweet-ann [11.9K]
3 years ago
8

In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos

t must be
Business
1 answer:
musickatia [10]3 years ago
5 0

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

Output (Q) = 100

Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

AFC = TFC / Q

TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

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3 years ago
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Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 m
vovikov84 [41]

Answer:

$660,000

Explanation:

WACC = [wD * kD * (1 - t)] + [wE * kE]

WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]

WACC = 1.60% + 6.56%

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Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate

Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816

Present value of annuity = $1.67*6.206374532

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5 0
2 years ago
A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually
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Answer:

1) True

2) D. Total fixed costs

Explanation:

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Total fixed costs do not change in total within relevant range of production.

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3 years ago
As Shirley responded to a personnel director's concerns about changing to the health-care plan her firm offered, she said, "I ca
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<u>Reffeal</u>

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5 0
3 years ago
You bought 200 shares of Stock A at $23.00 per share 6 months ago. It is now worth $47 per share. What was the percent of increa
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Stock A price= $23.00

Stock A price after 6 months= $47.00

Increase in price of Stock A= $47 - $23

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Percentage increase in stick price = <u>$24</u>  x  100%

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The percentage increase in the price of Stock A is 51%

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3 years ago
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