The correct option is Option A
Variable costs is best defined as: Are fixed in total as production levels change.
Variable costs are costs that vary with the volume of production or sales. These costs change in proportion to the changes in the level of business activity. Variable costs include direct materials, direct labor, and commission on sales. Unlike fixed costs, which remain constant regardless of changes in production or sales volume, variable costs rise or fall in direct proportion to changes in output.
An example of a variable cost is the cost of raw materials used in the production of a product. As the production volume increases, the cost of raw materials also increases, and as the production volume decreases, the cost of raw materials decreases. Another example is the cost of commission paid to salespeople, which varies directly with the volume of sales they generate.
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which of the following factors cause an increase in demand for a good? i) an expectation of a higher price in the future ii) a technological advancement iii) an increase in the price of a complement iv) a decrease in an input price
The variables that lead to an increase in demand for a good include the expectation of a higher price in the future.
A decrease in production costs and a raise in final cost. The buyers make up demand in a market.
The consumers are making consumer spending in a marketplace. A buyer's willingness to purchase a good or service in any quantity and at any price is referred to as their demand.
The law of demand states that this relationship is always adverse, with a drop in quantity desired in reaction to a rise in price.
The buyers' income. the costs of complementary or replacement goods or services that are acquired in place of a specific product, depending on the context.
Consumer habits or tastes will affect Drive Demand.
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A high-level is manager has his firm utilize sophisticated information systems to digitally design its products so that design defects can be detected and removed early in the process, reducing development cost. what business strategy does this represent?
This business strategy is known as Design for Manufacturing and Assembly (DFMA). DFMA is a systematic and iterative process used to reduce the cost of product design and manufacturing by identifying and removing design defects and other sources of waste.
What do you mean by DMFA?
DMFA stands for Designated Market Facilitator and Aggregator. It is a business model wherein a company acts as a bridge between the farmers and the customers. It provides a platform for farmers to list their produce and customers to buy it directly from the farmers. DMFA reduces the need for middlemen, streamlines the supply chain process, and facilitates easy access of fresh produce to customers. The company acts as a facilitator by taking orders from customers, aggregating them, and then forwarding them to the farmers. DMFA also helps farmers in overcoming the challenges they face in marketing their produce like connecting to buyers, ensuring timely payments, and providing logistics support.
So, This business strategy is known as Design for Manufacturing and Assembly (DFMA).
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sue now has $125. how much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? use tvm functions on your calculator or excel to solve for future value (fv). $205.83 $240.08 $216.67 $252.08 $228.07
The annual compounding has a total cost of $240.08.
N = 8
I/YR = 8.5%
Present value is $125,
PMT is 0 and
Future value formula is P*(1+R/N)^(N*T)
= 125*(1+8.5%/8)^(8*8.5)
=240.08
As a result, the final price is $240.08.
Compounding is the process through which earnings from an asset, such as interest or capital gains, are reinvested to produce more earnings over time.
Compounding is the method through which interest is added to both the principle balance already in place and the interest that has already been paid.
As a result, compounding, sometimes known as the "mystery of compound interest," can be thought of that as income on income, which has the benefit of making returns on concern higher over period.
Banks and other financial organizations will utilize a compounding period, such as annual, monthly, or daily, when crediting compound interest.
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what is the present value of a lump sum of $9,500.00 payable in 8 years? use a nominal rate (monthly compounding) of 9.25%.
The present value of $9,500 payable in 8 years, at a nominal rate of 9.25% compounded monthly, is $5,447.17.
The formula for calculating the present value of a future amount is:
PV = FV / (1 + r)^t
where:
PV is the present value
FV is the future value
r is the interest rate
t is the number of periods until the future value is received
To convert the nominal interest rate from an annual to a monthly rate, divide it by the number of compounding periods per year. In this case, 9.25% / 12 = 0.77% per month.
Plugging in the values:
PV = $9,500 / (1 + 0.0077)^(8 x 12)
PV = $5,447.17
So, the present value of $9,500 payable in 8 years, at a nominal rate of 9.25% compounded monthly, is $5,447.17.
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materials the student will be using, time limits for the completion of the task, and the location for the task to be performed are usually included as part of:
The location of the activity to be completed, the tools the student will use, and the deadlines for completion are typically specified in the conditions statement.
With the use of conditional statements, you can base your conclusion on particular circumstances. These requirements are specified via a collection of conditional statements containing boolean expressions that are evaluated to true or false boolean values. Conditional statements are part of mathematical reasoning, a vital skill that enables students to evaluate a given hypothesis without reference to a particular context or meaning. Simply put, when a scientific research or allegation is studied, the logic is not reliant on an individual's viewpoint. Deductions and evidence must have factual and scientific foundations. article.
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lou gerstner, when appointed ceo of ibm in 1993, said, 'the last thing ibm needs right now is a vision.' instead, he wanted the company to concentrate on: strategies. mission. values. aspirations.
Lou Gartner, when appointed CEO of IBM in 1993, said, 'the last thing IBM needs right now is a vision.' instead, he wanted the company to concentrate on strategies.
What is strategies?The term strategies refer to create a plan to the future implementation. The strategies are the long term and the short term basis. The strategies were the action plan in the future as they achieved the goal.
According to the Louis Vincent Gerstner Jr., was the appointed CEO of IBM in 1993. He was the global corporate leader are the focuses on strategic, intensely focused, and visionary. He was the concentrate on strategies.
As a result, the significance of the strategies are the aforementioned. Therefore, option (a) is correct.
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which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction?
Total quality management (TQM) is a management approach that places an emphasis on a constant, corporate-wide effort to uphold high levels of client satisfaction.
Total Quality Management (TQM) is a management philosophy founded on the idea that an organisation can achieve long-term success by having all of its members—from entry-level employees to its top executives—corporate on enhancing quality and, as a result, generating customer satisfaction. The goal of total quality management (TQM), a management approach, is long-term success achieved via customer satisfaction. In a TQM initiative, every employee of a firm takes part in enhancing their workplace's processes, goods, and services.
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what we called laws that prohibit monopolies and other activity that reduces competition ?
The law that prohibit monopolies and other activity that reduces competition is Antitrust laws.
What is Antitrust laws?This Act forbids any agreements, coalitions, or plots that unnecessarily obstruct domestic and international trade. This includes deals made by rival businesses to fix costs, rig bids, and divide up customers—all of which are considered felonies and subject to harsh penalties. The antitrust laws generally prohibit unauthorized mergers and business practices, leaving it to the courts to determine which ones are prohibited based on the specific facts of each case. From the era of horses and buggies to the modern digital era, courts have applied antitrust rules to evolving marketplaces.Laws against monopolies safeguard competition. The benefits of free and open competition for consumers are cheaper pricing and new, improved products. Each competing business will often attempt to draw customers in a market where competition is allowed by lowering prices while raising the caliber of their goods or services.
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for group education sessions offered on a voluntary basis and without incentives, the participation rate will likely be which?
The answer is less than 5%, for group education sessions offered on a voluntary basis and without incentives, the participation rate will likely be less than 5%.
What is the most accurate way to define education?Both imparting information to others and absorbing it from someone else are acts of education. Education also covers the institution of teaching as a whole as well as the information acquired via formal education or instruction. There are a few other noun senses for education.
Why is education necessary in general?The social institution of education is how society imparts crucial knowledge to its members, such as fundamental knowledge, practical skills, and cultural norms and values. The fact that education enhances individual lives and promotes social harmony is one of the most significant advantages of the system.
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if beth makes an initial investment of $1,000, how much will it be worth after three years if her average return is 8.25 percent (compounded monthly)? multiple choice $17,354.20 $1,268.48 $1,020.77 $1,279.74
Option D. $1,279.74. The final amount after 3 years of compounded monthly at 8.25% interest rate will be approximately $1,279.74.
To calculate the future value of an investment compounded monthly, you can use the formula:
FV = PV * (1 + r/n)^(nt)
where:
PV = the present value or initial investment ($1,000)
r = the average annual return rate (8.25%)
n = the number of compounding periods per year (12 for monthly compounding)
t = the number of years the investment is held (3 years)
Plugging in the values, we get:
FV = $1,000 * (1 + 0.0825/12)^(12 * 3) = $1,000 * (1.006875)^36
Using a financial calculator or spreadsheet, we can find that FV = $1,279.74, so the answer is D) $1,279.74.
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If Beth makes an initial investment of $1,000, how much will it be worth after three years if her average return is 8.25 percent (compounded monthly)? multiple choice
A. $17,354.20
B. $1,268.48
C. $1,020.77
D. $1,279.74
A standardized format used to accumulate data about each item reported on financial statements.
An account is a standardized format used with the aid of companies to accumulate the dollar results of transactions on each monetary announcement item. Accounts are integral to keep music of all will increase and decreases in the critical accounting model.
What are standardized monetary statements?The standardised financials encompass particular annual and meantime statements (including Income Statement, Balance Sheet, Cash Flow), key footnote records and at the beginning reported and restated financials.
What is the widespread layout for monetary statement?According to the Corporate Finance Institute, the simple monetary declaration format for an earnings announcement states revenues first, followed by means of expenses. The expenses are subtracted from the revenue to calculate the net earnings of the business.
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https://brainly.com/question/16729652#SPJ4which of the following securities cannot be sold by an individual holding an investment companies/variable annuities registered representative's (series 6) license? i municipal investment trusts ii real estate investment trusts iii municipal bond funds iv revenue bonds a i and iii only b ii and iv only c iii and iv only d i, ii, iii, iv
D 1, 2, 3, and 4. Financial instruments that reflect ownership or a claim on a piece of an underlying asset, such as stocks, bonds, options, and others, are referred to as "securities" in the fields of finance and investment.
Financial instruments that represent ownership or a claim on a portion of an underlying asset are referred to as securities. A few examples of these assets are stocks, bonds, and options. On financial markets, securities are bought and sold for a variety of reasons, including capital raising, risk management, and asset investing. To promote fairness, openness, and stability, government organisations heavily regulate the securities market. The performance of the underlying asset, market conditions, and the perceived risk associated with owning the security are only a few of the variables that affect a security's value. Investors have access to a variety of securities, including equities, fixed-income instruments, and derivatives.
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how many credits do you need to be a sophomore in high school?
When we have 30 credits, you are in sophomore standing; when we have 60 credits, you are in junior standing; and when you have 90 credits, you are in senior standing.
What do we mean by a sophomore?A sophomore is a student who is enrolled in their second year of school in the United States; this can be in a secondary school, a college or university, or other post-secondary institutions.
A sophomore in high school is comparable to a student in the tenth grade, or Class 10.
We will have sophomore standing when you have 30 credits, junior standing when you have 60 credits, and senior standing when you have 90 credits.
In sports, a professional athlete in their second season is referred to as a sophomore.
The stages of a four-year course are freshman, sophomore, junior, and senior.
The 10th grade is the second year of a student's high school era (often aged 15–16) and is referred to as the sophomore year.
Therefore, when we have 30 credits, you are in sophomore standing; when we have 60 credits, you are in junior standing; and when you have 90 credits, you are in senior standing.
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having a comparative advantage means a nation can group of answer choices produce without incurring an opportunity cost. produce more of the good. benefit from trade. produce the good at a point beyond its ppf. produce at a higher opportunity cost.'
Option 1st is correct. Having a comparative advantage means that a country can produce at no opportunity cost.
Comparative advantage is used to explain why a company, country, or individual benefits from trade.
While this usually points to trade advantages, some modern economists admit that focusing solely on comparative advantage can lead to overexploitation and depletion of a country's resources. increase. The law of comparative advantage is widely credited with the English political economist David Ricardo and his 1817 book On the Principles of Political Economy and Taxation, but it was Mill likely wrote the analysis.
The theory of comparative advantage introduces opportunity cost as an analytical factor in choosing between different production options.
Comparative advantage implies that countries trade with each other and export goods in which they have a relative advantage.
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gilchrist corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine-hours for the upcoming year at 41,000 machine-hours. the estimated variable manufacturing overhead was $4.16 per machine-hour and the estimated total fixed manufacturing overhead was $1,167,680. the predetermined overhead rate for the recently completed year was closest to:
So, for the just ended year, the predefined overhead rate was most closely associated with $28.57 per machine-hour.
Explain predetermined overhead rate in this question.Gilchrist Corporation uses a method called the predefined overhead rate to divide up its goods' expected manufacturing overhead costs. This rate is computed by dividing the projected annual machine-hours by the estimated variable and fixed manufacturing overhead costs. The company calculated that there were 41,000 machine hours used during the just ended year, with an estimated variable manufacturing overhead of $4.16 per machine hour and an estimated total fixed manufacturing overhead of $1,167,680. The preset overhead rate for the recently ended year was calculated by Gilchrist Corporation by dividing the sum of these estimated expenditures by the estimated machine-hours. Predetermined overhead rate equals estimated machine hours / (estimated variable manufacturing overhead plus estimated total fixed manufacturing overhead).
= ($4.16 + $1,167,680) / 41,000
$28.57 for each machine-hour
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assume the economy of atlantis only produces fish (point f). calculate the opportunity cost of producing potatoes in 200 pound increments.
Producing potatoes in 200-pound increments would cost 200 pounds of fish in opportunity costs.
This is due to the fact that 200 pounds of fish are not produced for every 200 pounds of potatoes.
The potential benefits that a person, investor, or institution forgoes while choosing between two scenarios are known as opportunity costs.
Due to the fact that opportunity costs are by necessity hidden, it is simple to neglect them.
Making smarter decisions requires an understanding of the possible opportunities lost when a company or person selects one investment over another.
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
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n the relationship paradigm versus the traditional marketing paradigm, the sales focus is on:
In the relationship paradigm versus the common advertising paradigm, the sales focus is on: client retention versus the individual sale.
What is the new paradigm in relationship marketing?A new advertising paradigm referred to as "one-to-one marketing," or "relationship marketing," suggests promise as an modern choice to mass marketing. This one-to-one approach uses superior data science to give an agency the potential to boost relationships with character customers.
What is relationship paradigm?The Relationship Paradigm is a foundation set up by means of relationship counsellor, Neil Wilkie, who's mission it is to assist and improve tens of millions of relationships round the world. It's a new shape of focussed and supportive counselling, which he's developed after years of psychological and enterprise experience.
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suppose an economy is operating above full employment. which of the following fiscal policy actions and resulting changes in aggregate demand will move the economy back towards full employment? responses increasing government spending, which will shift the ad curve rightward. increasing government spending, which will shift the a d curve rightward. decreasing government spending, which will shift the ad curve rightward. decreasing government spending, which will shift the a d curve rightward. increasing taxes, which will shift the ad curve leftward. increasing taxes, which will shift the a d curve leftward. decreasing taxes, which will shift the ad curve leftward. decreasing taxes, which will shift the a d curve leftward. increasing transfer payments, which will shift the ad curve leftward.
None of the options listed would directly address an economy that is operating above full employment, since full employment is defined as the level of employment at which there is no cyclical unemployment.
However, one possible option that could help alleviate inflationary pressures in an overheated economy is to decrease government spending, which could help decrease aggregate demand and potentially reduce inflationary pressures.
So the correct answer would be "decreasing government spending, which will shift the AD curve rightward."
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None of the options listed would directly address an economy that is operating above full employment, since full employment is defined as the level of employment at which there is no cyclical unemployment.
However, one possible option that could help alleviate inflationary pressures in an overheated economy is to decrease government spending, which could help decrease aggregate demand and potentially reduce inflationary pressures.
So the correct answer would be "decreasing government spending, which will shift the AD curve rightward."
Cyclic unemployment is a type of unemployment that occurs due to changes in the business cycle or economy. It is also known as cyclical unemployment.
In a business cycle, there are periods of economic growth, expansion, recession, and contraction. During the contraction or recession phase of the business cycle, the demand for goods and services decreases, causing businesses to reduce their production and lay off workers. This leads to an increase in unemployment, which is known as cyclic unemployment.
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dave borrowed $500 for one year and paid $50 in interest. the bank charged him a $5 service charge. what is the finance charge on this loan?
The finance charge on this loan is $55 ($50 in interest + $5 service charge).
The fee you pay to borrow money or the fee you charge to lend money is called interest. The most common way to represent interest is as a yearly percentage of the loan amount. The interest rate on the loan is this proportion.
The finance charge is calculated by adding the interest and the service charge:
Interest = $50
Service charge = $5
Finance charge = Interest + Service charge
Finance charge = $50 + $5
Finance charge = $55
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of the five job facets identified by the value-percept theory, which three have the highest correlation with job satisfaction?
The three job facets with the highest correlation to job satisfaction are: autonomy, task identity, and task significance.
What is a value-percept theory?Generally, Value-percept theory is a marketing theory that states that consumer decisions are based largely on their perception of the value of a product or service. It suggests that consumers are more likely to purchase something when they believe its value to be greater than its cost. It also suggests that consumers prefer products or services that have a higher perceived value than their rivals.
Value-percept theory can be used to help marketers develop pricing strategies and to understand consumer behavior.
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social change is one of the easiest external variables for marketing managers to forecast and assimilate into marketing plans. group of answer choices true false
Answer: false
Explanation:
explains the changes in a company’s stockholders’ equity over the accounting year.
Stockholders' equity, also known as shareholder's equity or owners' equity, represents the residual interest in a company's assets after deducting its liabilities. It is the portion of the company that is owned by its shareholders.
What causes Changes in a Company's Stockholders Equity?Over the course of an accounting year, several events and transactions can cause changes in a company's stockholders' equity. Some of these events and transactions include:
Issuance of new shares of stock: When a company issues new shares of stock, it increases the total number of shares outstanding, which in turn increases the total stockholders' equity.Repurchase of shares: When a company buys back its own shares, it reduces the total number of shares outstanding, which decreases the stockholders' equity.Dividend payments: When a company pays dividends to its shareholders, it reduces the retained earnings component of stockholders' equity.Net income or loss: The company's net income or loss for the year affects the retained earnings component of stockholders' equity. If the company has net income, it increases the retained earnings and stockholders' equity. If the company has a net loss, it decreases the retained earnings and stockholders' equity.Changes in the value of assets: Changes in the value of a company's assets can also impact stockholders' equity. For example, if the company's assets appreciate in value, it increases stockholders' equity. If the assets depreciate in value, it decreases stockholders' equity.Overall, the changes in a company's stockholders' equity over the accounting year reflect its financial performance, including its revenue, expenses, and investment activities.
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When only a portion of the units involved in a job are sold, the ______.a. cost is held in the finished goods account until all units in the job are soldb. entire cost of the job is transferred from finished goods to cost of goods soldc. unit product cost is used to calculate the amount transferred from finished goods to cost of goods soldd. unsold units are transferred to another job
unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold
What is cost of goods sold?Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costsBased on the formula above, if cost of goods sold is more than the cost of goods manufactured, finished goods inventory will be decreased for an amount that is more than its increase. Therefore, finished goods inventory will decrease during the period.Cost of goods sold is the total amount your business paid as a cost directly related to the sale of products. Depending on your business, that may include products purchased for resale, raw materials, packaging, and direct labor related to producing or selling the good
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a linear demand curve has: a elasticity of demand equal to the inverse of the slope at all prices. a uniform elasticity of demand. a positive elasticity of demand. elastic, inelastic, and unit-elastic segments.
A linear demand curve has " a uniform elasticity of demand". That shows the relationship between goods and time period.
The demand curve is the curve on the graph which shows the relation-ship between the goods or services demand with respect to the time period of demand.
There are four types of demand curve which is elastic demand curve, inelastic demand curve, individual demand curve and the market curves of demand curve.
There are four types of elasticity of a demand curve which is demand elasticity, income elasticity, cross elasticity and price elasticity. And, generally there are other elasticity curve like price elasticity of demand, income elasticity of demand which is known as YED
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g argo stock in 2013 grew by 11%, in 2014 by 14%, in 2015 by 8%. what is the expected growth in 2016?
The expected growth rate for Gargo stock in 2016 is 13.125%.
Based on the given data, the expected growth rate for Gargo stock in 2016 can be estimated using a simple linear regression model. To calculate the expected growth rate for 2016, we first need to determine the average growth rate for the 3 years 2013-2015. The average growth rate for those three years is 11.3%, calculated as (11+14+8)/3 = 11.3%.
The linear regression model can then be used to calculate the expected growth rate for 2016, which is the slope of the linear regression line. To do this, we need to calculate the sum of the squares of the differences between the growth rates and the average growth rate:
(11-11.3)2 + (14-11.3)2 + (8-11.3)2 = 0.48
We then need to calculate the sum of the products of the years and their respective growth rates:
(201311) + (201414) + (2015*8) = 19420
Finally, the expected growth rate for 2016 can be calculated as:
(19420/0.48) - (2014*11.3) = 13.125%
Therefore, the expected growth rate for Gargo stock in 2016 is 13.125%.
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It is difficult to accurately predict the growth of Gargo stock in 2016, as it is largely dependent on a variety of external factors, such as economic conditions, market trends, and company performance.
However, based on the past few years of growth, it is likely that the stock will continue to grow in 2016, although the rate of growth may not be as high as it was in 2014 and 2015.
Additionally, the performance of the company in terms of its financial performance, its strategies and goals, and its ability to develop new products and services can also have an impact on its stock performance. As such, it is important to monitor the performance of Gargo and other key players in the market to determine the best course of action to ensure steady and sustainable growth.
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a value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period is called___
A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period is called Annual Percentage Rate (APR).
What is an APR?The annual percentage rate (APR) is a common statistic for calculating how much it costs to borrow money or how much interest is received on investments. It is an expression of the real cost of borrowing as a percentage of the amount borrowed or invested over a 12-month period, taking into account both the interest rate and any other costs. Consumers can evaluate the cost of loans or investments offered by various suppliers using APR. When making financial decisions, customers should be aware of APR since it may affect the overall cost of borrowing and guide them toward the most affordable solutions.
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With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
Instituting a tax policy encouraging investment at the price of consumption.
Which is the most possibly to cause an outwards shift of an economy's manufacturing possibility curve?The production opportunity frontier will shift outward when there is and expand in the productive resources.
Outward or inward shifts in the PPF can be driven by adjustments in the complete amount of reachable production factors or by using developments in technology. If the total amount of production elements like labor or capital increases, then the economic system is capable to produce more items at any point alongside the frontier.
An improvement in the literacy rate of an economic system will now not cause an outward shift in the production possibilities curve of the financial system as a PPC shifts outwards solely when there is an improvement in the kingdom of science or an increase in the number of resources.
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https://brainly.com/question/26460726#SPJ4in tennessee, what happens if an owner sells a property while under contract to pay management fees to a manager of the property?
In Tennessee, the owner of a property is typically contractually obligated to pay any management fees to the manager of the property upon the sale of the property. If the owner fails to make the contractual payment, the manager may be able to bring a legal action to recover the unpaid management fees.
The Tennessee Property Management Code states that when a property is sold, the owner is obligated to pay any contractual management fees to the manager of the property. If the owner fails to make the payment, the manager can bring a legal action to recover the unpaid fees. This legal action could be a lawsuit, which would involve filing a complaint in a court of law and requesting a judgment to cover the cost of the unpaid fees.
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what's the future value of a 7%, 5-year ordinary annuity that pays $300 each year? if this was an annuity due, what would its future value be?
The future value of the ordinary annuity due is $1845.99. It can be calculated by using future value formula.
In the term of economic and business, An Ordinary annuity generally can be defined as a fixed payment made at the end of equal intervals (Semi-annually, Quarterly or monthly). There are several examples of ordinary equity, such as interest payments from bonds, which are generally made semiannually.
FV = PMT [tex]( (1 + (1 + r)^{n-1} )))[/tex] / r
FV = 300 [tex]((1 + (1 + 0.07)^{5-1} )))[/tex] / 0.07
FV = $1725.21
FV of ordinary annuity due = FV × (1+r)
= $1725.21 × 1.07
= $1845.99
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espresso express operates a number of espresso coffee stands in busy suburban malls. the fixed weekly expense of a coffee stand is $2,200 and the variable cost per cup of coffee served is $0.73. required: 1. fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases?
The average cost per cup of coffee served decreases as the number of cups of coffee served in a week increases.
To fill in the table, we can use the following cost formula:
Total cost = Fixed cost + (Variable cost per unit x Number of units)
where:
Fixed cost = $2,200
Variable cost per unit = $0.73
And the number of units represents the number of cups of coffee served in a week.
Number of cups of coffee served Variable Cost Fixed Cost Total Cost Average Cost per Cup
100 $73.00 $2,200.00 $2,273.00 $22.73
500 $365.00 $2,200.00 $2,565.00 $5.13
1,000 $730.00 $2,200.00 $2,930.00 $2.93
5,000 $3,650.00 $2,200.00 $5,850.00 $1.17
As we can see from the table, the fixed cost of $2,200 remains constant regardless of the number of cups of coffee served. The variable cost per cup of coffee is $0.73, which means that the variable cost increases as the number of cups of coffee served increases.
The total cost per week increases as the number of cups of coffee served increases, but the average cost per cup of coffee decreases as the number of cups of coffee served increases. This is because the fixed cost is spread over more units as the volume of coffee sales increases, which reduces the average cost per cup. Therefore, the average cost per cup of coffee served decreases as the number of cups of coffee served in a week increases.
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