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Bumek [7]
2 years ago
10

Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.

Business
1 answer:
stich3 [128]2 years ago
7 0

The total cost when producing zero units is $20.

The marginal cost for the first unit is $50.

The average total cost when producing three units is $65.67.

The average variable cost when producing four units is $98.

<h3>What are cost functions?</h3>

Fixed cost is cost that remains constant regardless of the output produced. It remains constant regardless the level of output. An example of fixed cost is rent. Average fixed cost is fixed cost divided by total output.

Variable cost is the cost that increases with the level of output. It increases the more output is produced. An example of variable cost is wages paid to labor. the average variable cost when producing four units. Average variable cost is variable cost divided by total output.

Total cost is the sum of fixed cost and variable cost. Average total cost is total cost divided by total output.

Marginal cost is the change in total cost.

Total cost of producing zero units = fixed cost + variable cost

$20 + 0 = $20

Marginal cost of the first unit = (total cost of the first unit - total cost of the zero unit) / (2 - 1)

total cost of the first unit = (average variable cost x total output) + fixed cost

$20 + 50 = $70

Marginal cost = (70 - 20) / (2 - 1) = $50

The average total cost when producing three units = Total cost / total units

Total cost of three units = marginal cost of three units + total cost of two units

Total cost of two units = 105 + 92 = $197

The average total cost = $197 / 3 = $65.67

The average variable cost when producing four units = (412 - 20) / 4 = $98

To learn more about marginal cost, please check: brainly.com/question/26246533

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7 0
3 years ago
Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in
zlopas [31]

Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

6 0
3 years ago
A person who can afford a monthly payment of and signs a loan
Bond [772]

Answer:

4000

Explanation:

5 0
2 years ago
Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth
givi [52]

Answer:

P5=48.3860

Explanation:

Santa Klaus Toys

The Price of the stock 5 years from today will be :

P5=D6/(r-g)=

D0*(1+g)^6/(r-g)

Where

D0 =3

g =3.9%

r=11.7%

Hence:

P5=3*(1+3.9%)^6/(11.7%-3.9%)

P5=3*(1+0.039)^6/(0.117-0.039)

P5=3*(1.039)^6/(0.078)

P5=3.77410/0.078

P5=48.3860

6 0
2 years ago
On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it declared a 2-for-1 stock split.
Naily [24]

Answer:

1. After the split, how many shares of common stock are outstanding and what is their par value per share?

40,000 stocks outstanding x 2 = 80,000 stocks outstanding after the stock split

par value of each stock = $2 / 2 = $1

Aren't both questions the same?

2. After the split, the number of shares outstanding is <u>80,000</u> and the par value per share is <u>$1</u>.

Explanation:

When a stock split happens, the total number of outstanding stock is just multiplied by the stock split factor, in this case it was 2, but other times it might be 4 or 7 (like Apple stock). You just multiply total outstanding stock by the split number. On the other hand, par value is calculated by dividing the current par value by the split number.

5 0
2 years ago
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