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STatiana [176]
3 years ago
8

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when

no workers are hired. In addition, suppose that when four units of output are produced, the total cost is $175, and the average variable cost is $33.75. What is the fixed cost of the firm?
Business
1 answer:
ella [17]3 years ago
8 0

Answer: $40

Explanation: Cost can be defined as the total resources of several forms used by the firm for the production of output. Cost can further be categorized into two parts fixed cost and variable cost. The cost that remains unchanged irrespective of the level of output is called fixed and the one that change with the level of output is called variable cost.

Therefore,

cost = fixed cost  + variable cost

$175 = fixed cost + ($33.75 * 4 )

fixed cost = $175 - $135

               = $40

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Ad libitum [116K]

Answer:

Apportioned set-up cost

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Max=$43,200

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.  

<em>Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers. </em>

<em>The cost driver in this scenario is the number of set-ups</em>

Activity rate per driver is calculated as:  

Activity overhead for the period / Total cost drivers for the period

So, we can apply this formula to the scenario above:

Set-up overhead= $64,800

Total set-ups for the period = 20 + 40 = 60

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Apportioned set-up cost

Plus =$21,600

Max-=$43,200

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3 years ago
You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $70
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Answer:

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That is,

1. Fixed cost is -

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The amount changes from $2.40 to $2.88 per paper

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5 0
3 years ago
Susanne, the CEO of a national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of p
Anika [276]

Answer:

Bounded rationality

Explanation:

Decision making is an important aspect of every man, However good decision making is guided by a lot of principles

Bounded rationality mean that human rational at the point of decision making is limited . It can be further explained by the principle that a number of factors like the available information ,mindset and even time can limit the decision making capacity of an individual.

This best define the situation confronting Susanne in the scenario.

8 0
3 years ago
XYZ Inc. has a facility with six departments (A, B, C, D, E, and F). A summary of the processing sequence for 10 products and th
denpristay [2]

Answer:

hello your question is incomplete attached below is the complete question

answer : attached below

Explanation:

<u>A) develop the from-to chart based on expected weekly production </u>

Firstly we calculate the production quantity processed

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7 0
3 years ago
If evelyn chang is a self-employed, state-certified accountant who provides various types of accounting services for different c
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If Evelyn Chang is self-employed and that she was able to do various types of accounting in different organizations and she is a certified accountant, she is probably or considered to be a certified public accountant in which this type of accountant may be able to do various types of services in accounting and can be done in different organizations in which Evelyn Chang is capable of doing.

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