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4 years ago

When a business is calculating its operating costs, it must include _____. answer.com?

Business

2 answers:

nordsb [41]4 years ago

7 0

When a business is calculating its operating costs, it must include variable costs.

A variable cost is a cost that changes with different levels of output. This is called a variable cost because it varies and there needs to be room in a businesses operating costs to allow for the changes in different output levels. When a business is predicting future costs, they can base what they think will be their variable costs on trends that have happened in previous periods.

Svetach [21]4 years ago

6 0

Variable costs.

Hope that helps, Good luck! (:

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For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model

bulgar [2K]

Answer:

c. Many

d. Differential

c. Monopolistic Competition

b. Few

c. Identical

a. Oligopoly

a. One

a. Unique

d. Monopoly

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms.

An example of a monopoly is a utility company

It is only the drug company that is permitted to sell the drug. So, it is the only firm in the industry. Also, it is the only firm that offers experimental AIDS drug, so its product is unique.

An Oligopoly is when there are few large firms operating in an industry. In the cab industry, it is a duopoly that exists. This is a type of oligopoly where there are only two firms in the industry. Consumers do not care about the cabs they enter or the different services offered by the companies, so, the product is identical

6 0

3 years ago

Crazy Coasters Amusement Park sells admission tickets for $ 70.00 per person for one visit. Variable costs are $ 15.00 per visit

docker41 [41]

Answer:

The month operating income is projected to be $7,890,000

Explanation:

The computation of operating income for 198,000 visitors

Revenue($70*198,000) $ 13,860,000.00

Variable costs($15*198,000) ($2,970,000.00)

Contribution margin $ 10,890,000.00

Fixed costs ($3,000,000.00)

Projected operating income $7,890,000.00

The revenue is computed based on 198,000 visitors not on 230,000 visitors as it is expected that the number of visitors in the month would be 198,000

Overall Crazy Coasters Amusement Park would likely record an operating income of $7,890,000 during the month

5 0

3 years ago

Wynona Corp’s production cost data for the current period is: Beginning work in process inventory: 20,000 units Units started in

Sliva [168]

Answer:

30,200 units

Explanation:

We have at the begining 20,000 units in process and during the period studied an additional bulk of 15,000 units starts it production, so:

During the studied period, (20,000+15,000) 35,000 are produced, but as at the end of the period we have 6,000 unit as work in progress, only 35,000-6,000= 29,000 units are finished.

So, we have 29,000 finished units+ 6,000 work in progress units.

The work in process units are equivalent to: 6,000 units*0,2= 1,200 equivalent units.

Total equivalent units= 29,000+ 1,200 = 30,200 Units

7 0

4 years ago

Consider the following hypothetical data for 2016 and 2017:

Naily [24]

Answer:

$0.67 and $0.73

Explanation:

The computation of the price levels for the year 2016 and 2017 is shown below:

For the year 2016

= (Money supply × velocity) ÷ (Real GDP)

= (2,000 × 5) ÷ (15,000)

= $0.67

And, for the year 2017, it would be

= (Money supply × velocity) ÷ (Real GDP)

= (2,200 × 5) ÷ (15,000)

= $0.73

We simply multiplied the money supply with the velocity and then divided it by the real GDP so that the price level could come

4 0

3 years ago

Duval Co. issues four-year bonds with a $117,000 par value on January 1, 2019, at a price of $112,870. The annual contract rate

AleksandrR [38]

Answer and Explanation:

The preparation of the amortization table is presented below:

Semiannual Discount Unamortized Discount Carrying Value

Period-End amortized

1/1/19 $4,130 $ 112,870

($117,000 - $112,870)

6/30/19 $3,613.75 $113,386.25

($4,130 - $4,130 ÷ 8 years) ($112,870 + $516,25)

12/31/19 $3,097.50 $113,902.50

($3,613 - $4,130 ÷ 8 years) ($112,.870 + $516,25)

6/30/20 $2,581.25 $114,418.75

($3,097.50 - $4,130 ÷ 8 years) ($113,902 + $516.25)

12/31/20 $2,065.00 $114,935.00

($2,581.25 - $4,130 ÷ 8 years)

6/30/21 $1,548.75 $115,451.25

($2,065 - $4,130 ÷ 8 years)

12/31/21 $1,032.50 $115,967.50

($1,548.75 - $4,130 ÷ 8 years)

6/30/22 $516.25 $116,483.75

($1,032.50 - $4,130 ÷ 8 years)

12/31/22 $- $ 117,000.00

($516.25 - $4,130 ÷ 8 years)

The same method is applicable for other time period

5 0

4 years ago