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arlik [135]
3 years ago
11

Scenario​ : The average total cost to produce 100 cookies is​ $0.25 per cookie. The marginal cost is constant at​ $0.10 for all

cookies produced. Refer to Scenario 1. The total cost to produce 50 cookies is:______.
A. ​$25.
B. ​$50.
C. ​$60.
D. ​$20.
E. indeterminate.
Business
1 answer:
nika2105 [10]3 years ago
8 0

Answer: D. $20

Explanation:

Total cost to produce 50 cookies = Total cost to produce 100 cookies - Marginal cost to produce 50 cookies

Total cost to produce 100 cookies is:

= Average total cost * number of cookies

= 0.25 * 100

= $25

Marginal cost to produce 50 cookies is:

= Constant marginal cost * number of cookies

= 0.10 * 5

= $5.00

Total cost to produce 50 cookies = 25 - 5

= $20.00

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Dividends in arrears are dividends on A. cumulative preferred stock that have been declared but have not been paid. B. non-cumul
Romashka [77]

Answer:

The correct answer is letter "A": cumulative preferred stock that have been declared but have not been paid.

Explanation:

Dividends in arrears are dividends that have not been paid in a period on cumulative preferred stock. A company does not necessarily have to pay dividends to its shareholders but the payment becomes cumulative. Under this situation, it is said that the organization has failed to generate enough cash during the year. Besides, there must be a dividend declaration for the dividends in arrears to be liable recognized.

7 0
3 years ago
When does a payday loan typically mature?
Rama09 [41]

Answer:

After the borrower's next check.

Explanation:

6 0
3 years ago
Read 2 more answers
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produc
Shtirlitz [24]

Answer:

Yes

Explanation:

The computation is shown below:

Particulars         Sales As Is   Process further     Incremental Accounting

Sales            $89,500       $605,000               $515,500

                                             (1,375 units × $440)

Less:

Additional Process costs $398,750                $398,750

                                          (1,375 units × $290)

Total           $89,500       $206,250                $116,750

Based on the incremental income, Holmes should process it further.

6 0
3 years ago
Suppose you win a lottery. You have two choices for receiving the money. Choice 1: $50 000 at the end of each year for 20 years
dimaraw [331]

Answer:

<em>The first option of an annuity is better because the amount is worth </em>   $2,288,098 in today's cash

Explanation:

<em>The better choice would be the option with the higher present value discounted at the required rate of return. The required rate of return is 8%</em>.

<em>To determine the better choice, we would compare the present value of choice 1 to the $500, 000 receivable today under choice 2</em>

The present value of $50 000 at the end of each year for 20 years is

PV = A × ((1+r)^n - 1)/r

r- 8%, n - 20, A= 50,000, PV - Present value

PV = 50,000 × (  ( 1.08)^(20) - 1) /0.08

     =  50,000 ×  45.7619643

     =  $2,288,098

<em>The first option of an annuity is better because the amount is worth </em>   $2,288,098 in today's cash which is higher than $500,000 offered by the second option.

The first option is greater than the second by $1,788,098.21  i.e

$2,288,098 - $500,000

<em />

7 0
3 years ago
A company needs 10,000 units of a component used in producing one of its products. The latest internal accounting reports show t
jok3333 [9.3K]

Answer:

A) The outsourcing costs $18 more per unit. It increases the cost by $18000

B) Price= $126

Explanation:

Giving the following information:

Q= 10000 units

In-house:

Variable manufacturing cost= $110 unit

Fixed cost= $40 unit

Total cost= $150 unit

Outsource:

Price=$144 unit

Fixed cost= $40*0,60= $24

Total cost= $168

A) The outsourcing costs $18 more per unit. It increases the cost by $18000

B) The price that makes the decision indifferent is the one that equals unitary costs. We can't reduce fixed costs.

Price=144-18= $126

7 0
3 years ago
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