+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 Newcoat Painting Company has for some time been experiencing high demand for its automobile repainting service. Because it has had to turn away business, management is c
Record treasury stock transactions using cost method for: a) bought 300 shares of common stock as treasury shares@ 62 b) sold 80 shares of treasury stock at 60 c) sold 40 trea
Suppose the grading for a course project can only have 7 possible outcomes; 100, 90, 80, 70, 60, 50, and 0. Let the random variable X be the scores on the project. Suppose
In addition, Trike1 owns 100% of Trike2, a U.K. corporation that markets Trike1's products in the United Kingdom. At end of the current year, the undistributed earnings and
The most accurate measure of the cost of a company's debt is:Choose one answer.A.The yield to maturity of the company's market traded debt.B.The company's interest expense.C.T
Allocate the support departments' costs to the operating departments using the direct method. Rank the support departments based on the percentage of their services provided
Ask friends to go get coffee and the first question is which Starbucks is close for everyone to meet. Many know and enjoy Starbucks coffee but not many know the history surr
Assuming that depreciation is to be charged for a full year on the ending balance in the asset account, compute the proper depreciation charge for 2011 under each of the metho