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3 years ago

Marginal cost is the average variable cost and the average total cost when they are

Business

1 answer:

fredd [130]3 years ago

8 0

Answer: equal to; at their minimum.

Explanation: Marginal cost is equal to the average variable cost and the average total cost when they are at their minimum.

Thus, when average total cost is increasing, marginal cost must be above average total cost; and when at its minimum, marginal cost is equal to average total cost. Also, when average variable cost is at its minimum, marginal cost equals average variable cost.

Marginal cost is the increase in the cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.

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Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase e

masya89 [10]

Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = $\text{After-Tax Net}$ cash flow $\text{(Taxable income - taxes + depreciation)}$

I = PV of $\text{Net cash flow}$ at the rate $12\%$ = $NCF$ / $(1+WACC\%)^n$

A B C D E F G H I

0 82,500 -82,500 -82,500

1 20% 16500 27000 10500 4200 22800 20357.14

2 32% 26400 27000 600 240 26760 21332.91

3 19% 15675 27000 11325 4530 22470 15993.70

4 12% 9900 27000 17100 6840 20160 12812.04

5 11% 9075 27000 17925 7170 19830 11252.07

6 6% 4950 27000 22050 8820 18180 9210.55

7 0% 0 27000 27000 10800 16200 7328.06

8 0% 0 27000 27000 10800 16200 6542.91

NPV $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

4 0

3 years ago

Standard of living includes _____, which can be bought and sold.

const2013 [10]

Standard of living includes GROSS DOMESTIC PRODUCTS, which can be bought and sold.

GDP is one of the factors of standard living. However, it is not a strong indicator of the quality of life an individual is living.

7 0

4 years ago

Lacrue Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing o

Nataly_w [17]

Answer:

the standard amount of materials allowed for the actual output is 23,310 ounces

Explanation:

The computation of the standard amount of materials allowed for the actual output is shown below:

= Actual output × direct material

= 3,700 units × 6.3 ounces

= 23,310 ounces

hence, the standard amount of materials allowed for the actual output is 23,310 ounces

The same is relevant

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3 years ago

Professor jennings claims that only 35% of the students at flora college work while attending school. dean renata thinks that th

hodyreva [135]

The data iuse
<span>use a 5% level of significance. Very yes</span>

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3 years ago

Should the United States acced to the United Nations Law of the Seas without reservations?

grin007 [14]

I think that the answer to this question should be based upon your opinion sorry if you were expecting the actual answer

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3 years ago

Marginal cost is ________ the average variable cost and the average total cost when they are ________

Marginal cost is the average variable cost and the average total cost when they are