Effects of increasing fixed cost, Cost Accounting

Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function

P = 1760 - 12Q

It finance department has estimated its total cost function as

TC = 24,000 + 5 Q - 15 Q2 + 0.333 Q3

a.  What is the effect of an increase in fixed costs of $5000 on equilibrium price and output?

 

 

Posted Date: 4/1/2013 5:53:00 AM | Location : United States







Related Discussions:- Effects of increasing fixed cost, Assignment Help, Ask Question on Effects of increasing fixed cost, Get Answer, Expert's Help, Effects of increasing fixed cost Discussions

Write discussion on Effects of increasing fixed cost
Your posts are moderated
Related Questions
Disadvantages of Standard Costing 1. The system of standard costing is very expensive to install : A lot of money is spent in studying output requirements in terms of materia

Q. Explain Break-even revenue? Sales revenue earned would give no profit and no loss. It can be computed by multiplying break-even volume (above) by products selling price, or

how do you calculate estimating cost for the last of the year based on activity during the first half of the year

A local delivery company has purchased a delivery truck for $15,000.  The truck will be depreciated under MACRS as a five year property.  The trucks market value (salvage value)

What is idle time for Fast Moving,Slow Moving,Non Moving, and Dead Stock??? Thanks in Advance. Santosh K Jha

Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while

We've all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, "Airline Industry Stock Outlook - August 2012"

Accounting Records - Nature and Purpose of Cost Accounting The quantitative information employed in the management and cost accounting systems can be obtained from with two ac

A Government issued a number of index-linked bonds on 1 June 2000 which were redeemed on 1 June 2002.  Each bond had a nominal coupon rate of 3% per annum, payable half yearly in a

The profit volume ratio of xltd. is 50% and the margin of safety is 40%.you are required to calculate the net profit if sales volume is rs.100,000?