PLEASE ANSWER THEY ARENT HARD I JUST DONT HAVE TIME

Kallie Smith, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charg

user100 [1]

Answer:

Use the high-low method to determine Flower Hour's cost equation for van operating costs.

total cost = $1,355 + ($0.25 x total miles)

Use your results to predict van operating costs at a volume of 15,000 miles.

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

Explanation:

Month Miles driven Van Operating Costs

January 15,800 $5,460

February 17,300 $5,680

March 14,600 $4,940

April 16,000 $5,310

May 17,100 $5,830

June 15,400 $5,420

July 14,100 $4,880

high cost - low cost = $5,680 - $4,880 = $800

high cost - low cost = 17,300 - 14,100 = 3,200 miles

variable cost per mile = $800 / 3,200 miles = $0.25 per mile

total variable cost when driving 14,100 miles = 14,100 miles x $0.25 per mile = $3,525

total fixed cost = $4,880 - $3,525 = $1,355

total cost = $1,355 + ($0.25 x total miles)

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

5 0

3 years ago

Which of the following statements is false? Multiple Choice The short run refers to a period of less than one year. In the long

Jet001 [13]

Answer:

The short run refers to a period of less than one year.

Explanation:

The statements is false that the short run refers to a period of less than one year.

The short run, long run and very long run are different time periods in economics.

Short run – where one factor of production (e.g. capital) is fixed.

long run – Where all factors of production are variable,

Unlike in accounting where operating period refer to a period of one year, there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.

7 0

3 years ago

Andrea and Phillip have been married for two years when they walk into the local State Farm agent's office. They see a banner (w

Amanda [17]

Answer:

$343

Explanation:

Andrea and Phillip's annual premium cost can be calculated using the cost per thousand formula:

cost per thousand = annual premium / thousands of coverage

cost per thousand = $0.98
thousands of coverage = $350,000 / $1,000 = 350

$0.98 = annual premium / 350

annual premium = $0.98 x 350 = $343

5 0

3 years ago

Ball Bearings, Inc., faces costs of production as follows:

Travka [436]

Answer:

Q Fixed Variable Total Marginal Aver. Aver. Aver.

Costs Costs Cost Cost FC VC TC

0 100 0 100 - - - -

1 100 50 150 150 100 50 150

2 100 70 170 20 50 35 85

3 100 90 190 20 33.33 30 63.33

4 100 140 240 50 25 35 60

5 100 200 300 60 20 40 60

6 100 360 460 160 16.67 60 76.67

The firm's profit in this case is -$360.

True or False: This was a wise decision. ⇒ False

Depends on the situation and which costs are avoidable if the company shuts down operations. If it produces 4 cases, the losses reduce from -$100 to -$40, but the contribution margin is positive since revenues exceed variable costs by $60. But under the current price level, the company will not be able to generate profits unless it increases its sales price or decreases its fixed costs.

Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.

At this level of production, the firm's profit is -$100.

True or False: This is the best decision the firm can make. ⇒ False

Accounting profit is maximized at 4 cases since marginal cost ($50) = sales price ($50). At this point the total profit is -$40.

3 0

3 years ago

Georgina consumes only grapefruits and pineapples. Her utility function is U (x comma y )equals x to the power of 0.8 end expone

vlabodo [156]

Answer:

21

Explanation:

Given that:

The utility function U(x, y) = $x^{0.8} y^{0.2}$