Widgets Inc. produces widgets. If Widget's Fixed Costs are $1,000 and the Average Variable Costs of producing an output of 25 widgets is $60

Widgets Inc. produces widgets. If Widget's Fixed Costs are $1,000 and the Average Variable Costs of producing an output of 25 widgets is $60, then Total Cost of producing that quantity of output is:

impossible to calculate with the information given

$100

$2,500

$1,500

Expert Solution

Widgets Inc. produces widgets. If Widget's Fixed Costs are $1,000 and the Average Variable Costs of producing an output of 25 widgets is $60, then Total Cost of producing that quantity of output is: $2500

Explanation

GIVEN TOTAL FIXED COST (TFC) =1000,

AVERAGE FIXED COST(AFC) = TFC/OUTPUT =1000/25 =40.

GIVEN, AVERAGE VARIABLE COST(AVC) = 60

Then AVERAGE COST = AFC +AVC = 40 +60 =100

AVERAGE COST = TC / OUTPUT

TOTAL COST(TC) = AVERAGE COST * OUTPUT =100 *25 =2500.

Rahul Sunny answered 2 years ago

Widgets Inc. produces widgets. If Widget's Fixed Costs are $16,000 and the Average Variable Costs of...

Widgets Inc. produces widgets. If Widget's Fixed Costs are $16,000 and the Average Variable Costs of producing an output of 50 widgets is $80, then Total Cost of producing that quantity of output is: $4,000 $20,000 impossible to calculate with the information given $400

Bob makes widgets. Variable costs per unit are $2. Fixed cost per unit (at an output...

Bob makes widgets. Variable costs per unit are $2. Fixed cost per unit (at an output level of 100) are $1 per unit. The normal sales price per unit is $5. A customer approaches Bob offering to buy 40 widgets for $4 each. Assume Bob has excess capacity. 1) What is the effect on operating income if he accepts the order? Additional revenue – additional cost = effect on oper. income. Fixed costs won’t change so additional costs = VC...

Yonka Beauty products has total variable costs of $25 million and fixed costs of $60 million...

Yonka Beauty products has total variable costs of $25 million and fixed costs of $60 million per year. Sales for the year are 5 million units at an average price of $35. What are breakeven units? A.12 million. B.6 million. C.5 million. D.2 million. E.3 million.

What is the average fixed cost of producing 8 units of output?

QuantityofOutputFixedCostVariableCostTotalCostAverageFixedCostAverageVariableCostAverageTotalCostMarginalCost1$23$332$383$704$645$1106$1187$1438$185Refer to Table 13-14. What is the average fixed cost of producing 8 units of output?

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable Cost $ Average Total Cost $ Marginal Cost$ 0 0 1 12 2 20 3 24 4 27 5 40 6 65 7 98 Assume that the fixed cost is $80, calculate the above costs in the table and explain the difference between average total costs and marginal costs. In a graph illustrate the Average Total Cost and Marginal Cost Curves, explain their relationship....

Dallas Inc. sells a product for $62. Variable costs are 60% of sales, and monthly fixed...

Dallas Inc. sells a product for $62. Variable costs are 60% of sales, and monthly fixed costs are $58,776. a. What is the break-even point in units? (Do not round intermediate calculations.) b. What unit sales would be required to earn a target profit of $123,256? (Do not round intermediate calculations.) c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars? (Do not round intermediate calculations.)

a) Find ABC’s average fixed costs, average variable costs, average total costs and marginal costs.

Quantity Total Fixed Cost Total Variable Cost 0 100 0 1 100 50 2 100 70 3 100 90 4 100 140 5 100 200 6 100 360 a) Find ABC’s average fixed costs, average variable costs, average total costs and marginal costs. b) Since ABC is charging the customers at the price of $50, it seems that the company cannot make a profit. The owner decides to shut down operations. What are ABC’s profits/losses? Should the owner shut down...

Jim runs a nursery. Identify the following costs he faces as fixed costs, average fixed costs, variable costs, average variable costs, total costs, average total costs, or marginal costs:

Jim runs a nursery. Identify the following costs he faces as fixed costs, average fixed costs, variable costs, average variable costs, total costs, average total costs, or marginal costs:a) The rent he pays on his greenhouse in the short runb) The rent he pays on his greenhouse in the long runc) the cost of soil, water, and seeds in the short rund) the per-unit cost of producing a nursery plant in the short rune) the opportunity cost of shutting the...

XYZ Company makes 250 widgets. The variable costs are $36.80 per unit and fixed costs are...

XYZ Company makes 250 widgets. The variable costs are $36.80 per unit and fixed costs are $31.20 per unit; however, $22.60 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $47.00 per unit? Decrease of $5,250 Increase of $400 Decrease of $400 Increase of $5,250

A. What are Apple INC's fixed and variable costs to the company of producing, marketing, and...

A. What are Apple INC's fixed and variable costs to the company of producing, marketing, and selling the new good or service, and how do those fit with the company’s short- and long-term objectives? Support your narrative with a table showing calculations and any assumptions. B. How much is the target market willing and able to pay for Apple's product or service? Use target market analysis and research on competitors’ prices to support your answer. C. Are targeted consumers willing...

Question