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Anarel [89]
2 years ago
14

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 would the average fixed cost be if ten units were produced?
a. $135b. $4c. $40d. $10
Business
1 answer:
Lera25 [3.4K]2 years ago
6 0

Answer:

Total variable cost if 4 units were produced

= $33.75 x 4 units = $135

Total fixed cost = Total cost - Total variable cost

Total fixed cost = $175 -$135

Total fixed cost = $40

Average fixed cost = Total fixed cost/No of units

Average fixed cost = $40/10 units

Average fixed cost = $4

The correct answer is B

Explanation:

In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.

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Answer: Please refer to Explanation

Explanation:

The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.

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c. Fixed costs that are readily controllable by the manager. NONE

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5 0
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Blue Company purchased 60 percent ownership of Kelly Corporation in 20X1. On May 10, 20X2, Kelly purchased inventory from Blue f
aleksandr82 [10.1K]

Answer:

Blue Company

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1. c. $86,000

2. b. $47,000

3. d. $39,000

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Answer:

A,C,D

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ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The face value is $1,000 per bond. What are the
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Answer:

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