Determining total cost problem-cost per unit

Assignment Help Microeconomics
Reference no: EM1371846

Company A plans to produce 300,000 units next year, the production budget is:

Direct labor: 600,000

Ingredients: 450,000

packaging 150,000

rent 225,000

depreciation 80,000

other fixed costs 55000

Compute the total cost and cost per unit when the unit production is changed to 315,000 units.

Reference no: EM1371846

Questions Cloud

Activity-based costing-job costing : Employ the Internet or other resources to find out an article relevant to activity-based costing (ABC), job costing, or process costing. Make a 125-word executive summary of your article.
Absorption and variable costing methods on income statement : Write down the differences between absorption and variable costing techniques on income statement presentation.
What routing protocol is suitable for retail customer : What routing protocol would you suggest for this network? Describe the reasons for your selection; refer to specific features of protocols that influenced your selection.
Practice of tipping : In most restaurants, waiters receive a big portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15 percent tip for parties of eight or more.
Determining total cost problem-cost per unit : Company A plans to produce 300,000 units next year, the production budget is: Compute the total cost and cost per unit when the unit production is changed to 315,000 units.
Financial impact of outsourcing the grounds maintenance : College A is planning outsourcing their groundskeeping. They have been given a bid from Groundskeeper Willie for $250,000 a year, with the claim that he will keep school grounds in the same condition they are in now.
Explain different strategies-transfer file between computers : In second strategy, packets are not acknowledged individually, but whole file is acknowledged when it arrives. Explain the two approaches.
Decrease in price of access : The steady increase in demand for home computers has resulted in the massive increase in demand for web access, yet, the price of access has been steadily declining.
Attributes of new economy : Supposing a products is produced both in the US and abroad what would be the effects of the US import quota on the good? Discuss some of the attributes of the new economy.

Reviews

Write a Review

Microeconomics Questions & Answers

  Demand or supply of gasoline

The demand for energy in the United States is often stated as persistently non-cyclical and not sensitive to both prices effects. Given such characteristics, explain the effect of each of the following on the demand or supply for gasoline.

  Schedule of demand and supply

Graph the demand and supply curves. What is the equilibrium price and quantity in this market and if the actual price in this market were above the equilibrium price, what would drive market toward the equilibrium?

  Determining learning rate

A production lot of 25 units required 103.6 hours of effort. Accounting records show that first unit took seven hours. What was the learning rate?

  Question on cross-price elasticity

The demand for personal computers can be characterized by following point elasticity = -5, cross-price elasticity with software = -4, and income elasticity = 2.5. Indicate whether each of following statements is true or false, and describe your an..

  Example of resource allocation optimization

Find out the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $0.375 per square foot.

  Theory in engineering economics

Why is a common analysis period necessary in comparing mutually exclusive alternatives by the "Present Worth Method", but is not necessary in the "Equivalent Uniform Annual Cash Flow method"?

  Shifts in demand curve

What are some of the ways these curves shift and what is the corresponding change to the point of equilibrium?

  Advertising between competition and oligopoly

Consider some of products which are widely advertised on television. By what type of firm is each produced the perfectly competitive firm, an oligopolistic firm, or another kind of firm? How many major products can you think of that are not advert..

  Nature of competitive industries

Firms like Papa John's, Domino's, and Pizza Hut sell pizza and other products which are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of such firms products permits them to charge prices a..

  Question on breakeven point

A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?

  Concept of relevant cost

Two partners who owns IT Business Solutions, a company supplying specialist software, operate out of an office in Fourways, Johannesburg but have discovered a vacant office building close to Sandton City.

  Short run and long run decisions

Assume that you became president of small theater company. Your playhouse has the 120 seats and small stage. The actors have national reputations, and demand for tickets is enormous relative to number of seats available

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd