+1-415-670-9189
info@expertsmind.com
Vintage cellars manufactures a 1000-bottle wine storage
Course:- Accounting Basics
Reference No.:- EM13601445




Assignment Help
Assignment Help >> Accounting Basics

Vintage Cellars manufactures a 1,000-bottle wine storage system that maintains optimum temperature (55-57 °F) and humidity (50-80 percent) for aging wines. The system has a backup battery for power failures and can store red and white wines at different temperatures. The following table depicts how average cost varies with the number of units manufactured and sold (per month):
Quantity Average Cost

1 $12,000 2 10,000 3 8,600 4 7,700 5 7,100 6 7,100 7 7,350 8 7,850 9 8,600 10 9,600
Required:

a. Prepare a table that computes the total cost and marginal cost for each quantity between 1 and 10 units.
b. What is the relation between average cost and marginal cost?
c. What is the opportunity cost of producing one more unit if the company is currently producing and selling four units?
d. Vintage Cellars sells the units for $9,000 each. This price does not vary with the number of units sold. How many units should Vintage manufacture and sell each month?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The capstone assignment for BUS 460, Business Strategy, is one of a series of assignments designed to demonstrate that students have achieved the learning outcomes establish
The police department of Mason, IL consists of 90 full-time officers varying in ages, from 21 to 59. The tenure of the officers also varies with some being newly hired and o
Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on July 1, and had income applicable to common stock of $1,050,000 for the year
You are the assistant director of human resources. Janice Marshall has asked you to review the Code of Ethics to determine if John has violated its provisions. You are to pr
eWare Corp started operations Jan 1, 2009. Using the information from December 31, 2009 prepare income statement, retained earnings statement, balance sheet and statement of
Design and construct an Excel worksheet that can be used to calculate your GPA. Make sure you use formulas to total and calculate your grades for past courses as well as fut
International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign cu
The corporation elected S corporation status at the starting of 2011. On February 13, 2012, the property was sold for $40,000, payable in 4 yearly instalments of $10,000 plus