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OlgaM077 [116]
3 years ago
9

Should a firm shut down if its weekly revenue is ​$1 comma 000​, its variable cost is ​$600​, and its fixed cost is ​$800​, of w

hich ​$350 is avoidable if it shuts​ down? ​ Why? The firm should A. produce because revenue of ​$1 comma 000 is greater than avoidable costs. B. produce because revenue of ​$1 comma 000 is greater than variable costs. C. produce because revenue of ​$1 comma 000 is greater than fixed costs. D. shut down because because variable costs are less than fixed costs. E. produce because revenue is positive.
Business
1 answer:
kifflom [539]3 years ago
7 0

Answer: The correct answer is "C. produce because revenue of ​$1 comma 000 is greater than fixed costs.".

Explanation: The firm should produce because the revenue of 1000 is enough to cover the fixed costs and part of the variables (1000 - 800 - 600 = (-400)) so that the loss is less than if it stopped producing despite the avoidable costs (800 - 350 = 450) since if it stopped producing it would have a loss of $ 450 and producing it would have a loss of $ 400.

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Titus Company produced 5,900 units of a product that required 3.546 standard hours per unit. The standard fixed overhead cost pe
natta225 [31]

Answer:

$417 A.

It is an adverse variance.

Explanation:

Fixed factory overhead volume variance is the difference between budgeted output at 100% normal capacity and actual production volume multiplied by standard fixed overhead cost per unit.

Formula

Fixed factory overhead volume variance = (budgeted standard hours for 100% normal capacity - Actual standard output hours) × standard fixed overhead cost per unit.

Calculation

Since 5900 units of a product was produced in 3.546 standard hours per unit, total actual standard hour is therefore;

= 5900×3.546

=20,921 hours

Overhead cost per unit = $1.10 per hour

Hours at 100% normal capacity = 21,300 hours.

Recall the formula for fixed factory overhead volume variance is =(budgeted standard hours for 100% normal output- actual standard output hours)× standard fixed overhead per unit.

Therefore;

Fixed factory overhead volume variance =(21,300 hours - 20,921 hours)× $1.10

=379 hours × $1.10

=$417 A

It is therefore an adverse variance.

4 0
3 years ago
Do you think most employers are serious about the development of their employees or are they only concerned with productivity?
Mandarinka [93]

Answer:

Productivity is the phenomena of the world economies. It is important for the development and growth.

Explanation:

There are many international and national organization that take care about their employees growth. But many of organization are there which is only think about the productivity not about their employees. The industrial organization psychology worked on this concepts. Many research has been done just because to find out about the employees condition and productivity in an organization.

It is very important for employers if they think about the mental, physical health of their employees it affects the productivity. If employees are satisfied with the environment and policy of a company then productivity will also increase side by side.

3 0
3 years ago
If there is little demand for a product, the price for that product will
Arte-miy333 [17]
C because when you want something less they make it cheaper hoping you’ll want it more. McDonald’s coffee is cheaper then Starbucks making it a bargain and poor people want it
5 0
3 years ago
Read 2 more answers
Statutes prohibit police officers from demanding money for investigating and apprehending criminals and prohibit firefighters fr
irakobra [83]

Answer:

The citizen, however, does not have to pay because the police officer has a pre existing duty.

Explanation:

"Preexisting duty rule is a common-law rule of contract. It says that the rule that performance of an act by which a party is already contractually bound to perform does not constitute valid consideration for a new promise. In other words, a party's offer of a performance already required under an existing contract is an insufficient consideration for modification of the contract."

Then, the citizen doesn't have to pay because the police officer has an existing contract, and it's considered an insufficient consideration for modification of that contract.

Reference: US Legal, Inc, 2019. “Preexisting Duty Rule Law and Legal Definition.” Preexisting Duty Rule Law and Legal Definition | USLegal, Inc., 2019

3 0
3 years ago
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales41,000 U
Nesterboy [21]

Answer:

29,257 units

Explanation:

The break-even point is reached when the revenue from sales equals total variable plus fixed costs.

The break-even point, in units is:

x*\$15.45 = \$177,000+(x*\$9.40)\\x=\frac{\$177,000}{\$15.45-\$9.40} \\x=29,256.20

Rounding up to the nearest whole unit, the break-even point is 29,257 units.

6 0
3 years ago
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