Question
In: Finance
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
Solutions
Expert Solution
Minimal price for 1251 units = total cost for 1251 units - total cost for 1250 units
Total cost = Avg cost * no of units
Minimal price for 1251 units = (41.16 * 1251) - (41.18 *1250)
= 51491.16 - 51475
= 16.16
Option D has to be selected.
jeff jeffy 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?
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
quantity of broomsticks fixed cost variable cost total cost average fixed cost average variable cost average...
quantity of broomsticks
fixed cost
variable cost
total cost
average fixed cost
average variable cost
average total cost
marginal cost
marginal product
0
10
$13
$38
22
$28
32
$70
41
$64
50
$110
59
$108
65
$133
70
$185
how do I fill in the blanks?
as well as graph the three average cost curves and the marginal
cost curve.
For each quantity, calculate average variable cost, average total cost, and marginal cost.
Variable
TotalQuantity
Cost
Cost 0
cups
Rs.0
Rs.29
1
9
39
2
24
54
3
44
74
4
69
99
5
99
129
6
134
164For each quantity, calculate average variable cost, average
total cost, and marginal cost.Plot all three curves on the same graph. Discuss the relationship between marginal-cost curve and
average-total-cost curve.
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...
Quantity
Total Cost
Total Fixed Cost
Total Variable Cost
Average Fixed Cost
Average Total Cost
Average Variable Cost
Marginal Cost
0
30
1
75
2
150
3
255
4
380
5
525
6
680
7
840
8
1010
9
1200
Given the quantity and total cost, calculate for total fixed
cost, total variable cost, average fixed cost, average total cost,
average variable cost, and marginal cost.
Excel formulas would be nice but not required.
A company produces a product which has a standard variable production cost of $8 per unit...
A company produces a product which has a standard variable
production cost of $8 per unit made up as
follows:
$
Per Unit
Direct
material $4.60
(2kg X $2.30 per kg)
Direct labour
$2.10
(0.7 hours x $3.00 per hour)
Variable overhead
$1.3
Fixed manufacturing costs are treated as period costs. The
following information is available for the period just ended,
Variable manufacturing cost of sales (at standard
cost) $263,520
Opening stock of finished goods (at standard
cost) $120,800
Closing stock of finished...
Production cost, fixed cost, average variable cost, product output
Use the following data table to answer questions a,b,c,d, and d. Answer the next question(s) on the basis of the following cost data for a purely competitive seller:
a. what are the above data for?
b.How much are average fixed cost, average variable cost, and average total cost at 5 units of output?
c. How much is the marginal cost of the fifth unit of output?
d. How many products will the firm...
1. As the quantity produced goes to infinity, the average variable cost curve will
1. As the quantity produced goes to infinity, the average
variable cost curve will(a) go to zero. (b) stay constant. (c) approach the average
total cost curve. (d) None of the above answers are correct.2. In our model of a competitive firm’s problem, the firm wants
to(a) maximize revenue by choosing quantity. (b) maximize profit
by choosing quantity. (c) minimize cost by choosing quantity. (d)
maximize profit by choosing market price.3. Suppose you must pay a $40 fee for a...
Intel's average cost in a given year falls with the quantity that it produces. In addition,...
Intel's average cost in a given year falls with the quantity
that it produces. In addition, extra production this year lowers
the average cost curve next year. For example, in year 1,
AC=42
if quantity is 20 and
AC=30
if quantity is 60. If Intel produces 20 in year 1 and 40 in
year 2, the average cost in year 2 will be
30.
However, for every extra 10 units it produces in year 1, its
AC for any given...
Suppose you learn that a perfect competitor minimizes average variable economic cost when it produces 100...
Suppose you learn that a perfect competitor minimizes average
variable economic cost when it produces 100 units per day and
minimizes average total economic cost when it produces 250 units
per day. The minimum average variable cost is $30 and the minimum
average total cost is $50. Presume that the firm maximizes profit.
Sketch the cost curves and use the sketch to help you answer the
questions.
1a) When the market price is $35, in the long run
the number...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
ADVERTISEMENT