Answer:
increasing then decreasing
Explanation:
production level total cost average total cost
4,000 $8,000 $2.00
4,200 $8,200 $1.95
4,400 $8,800 $2.00
Returns to scale measure the change in productivity, or how much input is needed to produce a unit of output.
- increasing returns to scale: output increases in a greater proportion than inputs
- constant returns to scale: output increases in the same proportion as inputs
- decreasing returns to scale: output increases in a lower proportion than inputs
Since first the average total cost decreased, total output increased in a greater proportion than inputs ⇒ increasing returns of scale. But then the situation reversed and total output increased in a lower proportion than inputs ⇒ decreasing returns of scale.
Answer:
Option (b) is correct.
Explanation:
Given that,
Budgeted sales in September = $260,000
Budgeted sales in October = $375,000
Budgeted sales in November = $400,000
Percent of merchandise sells for cash = 30%
Percent of merchandise sells on account = 70%
Out of the credit sales,
80% are expected to be collected in the month of the sale.
20% in the month following the sale.
Therefore, the cash collections in September from accounts receivable will include only 80% of the credit sales in September as Nuthatch corporations starts its operation on September 1, hence there will be no sales in August.
Cash Collections From Accounts Receivables;
= 80% of the credit sales in September
= 0.8 × (70% × $260,000)
= 0.8 × $182,000
= $145,600
*Your name.
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