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In: Accounting
Ted's Sleds produces sleds at an average variable cost per unit of $41.18 when production quantity...
Ted's Sleds produces sleds at an average variable cost per unit of $41.18 when production quantity is 1,250 units. When production increases to 1,251 units the average variable cost declines to $41.16. What is the minimal price that Ted's Sleds can charge for the 1,251st sled without affecting net profits?
Solutions
Expert Solution
| Number of units produces | 1,250 | 1,251 |
| Average variable cost per unit | $41.18 | $41.16 |
| Total variable cost | $51,475 | $51,491.16 |
Increase in total variable cost due to 1,251st Sled = 51,491.16-51,475
= $16.16
The minimal price that Ted's Sleds can charge for the 1,251st sled without affecting net profits = $16.16
ekkarill92 answered 2 years agoRelated Solutions
Ted's Sleds produces sleds at an average variable cost per unit of $41.18 when production quantity...
Ted's Sleds produces sleds at an average variable cost per unit
of $41.18 when production quantity is 1,250 units. When production
increases to 1,251 units the average variable cost declines to
$41.16. What is the minimal price that Ted's Sleds can charge for
the 1,251st sled without affecting net profits?
Select one:
a. $15.16
b. $14.16
c. $13.89
d. $14.37
e. $16.16
Ted's Sleds produces sleds at an average variable cost per unitof $41.18 when production quantity...
Ted's Sleds produces sleds at an average variable cost per unit
of $41.18 when production quantity is 1,250 units. When production
increases to 1,251 units the average variable cost declines to
$41.16. What is the minimal price that Ted's Sleds can charge for
the 1,251st sled without affecting net profits?
a. $15.16
b. $14.16
c. $14.37
d. $16.16
e. $13.89
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how do I fill in the blanks?
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