Fixed costs are determined at the normal

Reference no: EM13696725

1) Fixed costs are determined at the "normal"/"planned" volume level. At any other level of volume, total fixed costs don't change (so by default, fixed costs per unit are different at any different volume).
2) explain your results in details, and to explain your conclusions including the specific amounts and reasons.

Reference no: EM13696725

Questions Cloud

Net reduction of 4 employees for a total annual salary savin : Powell Corporation is considering replacing its current computer system with a new one. The computer system itself will cost $300,000 (i.e. Software and Hardware) with additional outlays for installation of $50,000 and training costs of $30,00..

What is the equilibrium quantity of martin guitars : Suppose you are hired by the Martin guitar company as an economic consultant. You estimate the demand for Martin guitars to be Q = 8000 – 2P. Suppose the supply of Martin Guitars is given by Q = –2000 +3P. What is the equilibrium price of Martin guit..

Derive the average cost-the marginal costs : A production function is given by F(K,L) =2L(K)^1/2 (note output q= F(K,L)). In the short run K=25, and r =5, and wages are given by w. Derive the average cost, the marginal costs, and the total cost of this production function. Does it possess the p..

Level of income per capita-growth rates of income per capita : Suppose there are two countries. In the rich country the representative consumer has Hr units of human capital, and total factor productivity is Zr. In the poor country, the representative consumer has Hp units of human capital, and total factor prod..

Fixed costs are determined at the normal : 1) Fixed costs are determined at the "normal"/"planned" volume level. At any other level of volume, total fixed costs don't change (so by default, fixed costs per unit are different at any different volume).

What were its profit maximizing quantity and price : When the iPad was introduced, Apple’s, Apples constant marginal cost of producing this iPad was about $220. We estimate that Apple’s inverse demand function for the iPad was P= 770 – 11Q, where Q is millions of iPad purchased. What were its profit ma..

The jury in the medtrans deloitte lawsuit ruled : The jury in the MedTrans v. Deloitte lawsuit ruled that the accounting firm negligently resigned from the 1992 audit, breached its contract with the client, and made defamatory statements regarding MedTrans' former executives during the predece..

Competitive market is initially in long-run equilibrium : "Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm's average costs to ________. As a result, the profits of existing firms will ________.

A local partnership is considering possible liquidation : A local partnership is considering possible liquidation because one of the partners (Bell) is insolvent. Capital balances at the current time are as follows. Profits and losses are divided on a 4:3:2:1 basis, respectively.

User Account

All Pages