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

Solutions

Expert Solution

Total costs = total fixed costs + total variable costs

Total fixed cost = $ 16,000

Total variable cost = Average variable cost × number of widgets = $80 × 50 = $4000

Total costs = 16000 + 4000 = $20,000

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

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

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....

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 company produces a product that currently costs $8 in variable costs and $2 in fixed...

A company produces a product that currently costs $8 in variable costs and $2 in fixed costs. It sells the product for $14. If processed further, the company will spend an additional $6 in variable costs and $2 in fixed costs. Each unit would then be sold for $24. Why would the company choose to process further?

A company produces a product that currently costs $8 in variable costs and $2 in fixed...

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...

Cohen Company produces and sells socks. Variable costs are $5.40 per pair, and fixed costs for...

Cohen Company produces and sells socks. Variable costs are $5.40 per pair, and fixed costs for the year total $76,500. The selling price is $9 per pair. Required: 1. Calculate the breakeven point in units. 2. Calculate the breakeven point in sales dollars. 3. Calculate the units required to make a before-tax profit of $45,000. 4. Calculate the sales in dollars required to make a before-tax profit of $38,700. (Do not round intermediate calculations.) 5. Calculate the sales, in units...

What is the difference between fixed costs and variable costs?’ Are there fixed costs in the...

What is the difference between fixed costs and variable costs?’ Are there fixed costs in the long run? Explain briefly. Are fixed costs also sunk costs? Explain. What are diminishing marginal returns as they relate to costs? Which costs are measured on a per-unit basis: fixed costs, average cost, the average variable cost, variable costs, and marginal cost? How is each of the following calculated: marginal cost, average total cost, average variable cost? What shapes would you generally expect each...

Subjects