=80Therefore gross profit is (20/80)Sales (cost of sales + gross profit) | =1200000=300000=1500000 | ABSORPTION COSTING | MARGINAL COSTING | 1.It is known as full costing. Both fixed and variable are included to ascertain the cost2.Different units are obtained at different levels of output because of fixed expenses remaining the same.3.Difference between sales and total cost.(marginal cost and fixed cost)is profit4.A portion of fixed cost is carried forward to the next period because closing stock of
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this action alter your decision made in part C? Total cost (TC) is the sum of all the different costs they incur when producing and selling their product. Average cost (AC) is the total cost divided by the quantity of goods: AC = TC/q Marginal cost (MC) is the extra cost incurred in producing one more of the product. This can be found by measuring the slope of the TC curve: MC = (change in TC)/(change in q) If we can combine a firm’s costs and revenues‚ we can calculate the firm’s
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User | Samantha Capasso | Course | Managerial Economics & Globali | Test | Final Exam | Started | 9/14/12 7:22 PM | Submitted | 9/14/12 8:45 PM | Status | Completed | Score | 260 out of 300 points | Time Elapsed | 1 hour‚ 22 minutes out of 2 hours. | Instructions | This final exam consist of 30 multiple choice questions and covers the material in chapters 8 through 17. There are three questions from each chapter and the questions are in chapter order. Be sure you are in the
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it chooses at this price. Therefore‚ the change in total revenue that results from a one-unit increase in the quantity sold is equal to the market price‚ so the marginal revenue curve is a horizontal line at the market price of $5 per box. Since the demand curve is also a horizontal line at the market price‚ the demand curve and the marginal revenue curve are the same. Economic profit equals total revenue minus total cost‚ so profit is at its maximum when the difference
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Chapter 2: DQ7 p.55 PCCW provides broadband Internet access in Hong Kong under the brand name‚ Netvigator. Table 1 lists several of the plans offered in April 2004. Table 1: Netvigator Broadband Internet Access Plans | Plan | Monthly Subscription | Included Hours | Charge per additional hour | Bandwidth | Basic | HK$198 | 20 | HK$2 | Up to 1.5 Mbps | 3M Single User Plan | HK$298 | 100 | HK$2 | Up to 3.0 Mbps | 6M Single User Plan | HK$398 | 200 | HK$2 | Up to 6.0 Mbps | a.Wong subscribes
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distinctions among fixed costs‚ sunk costs‚ variable costs and marginal costs? Fixed costs‚ such as SG&A expenses‚ property taxes‚ remain constant as output increases; FC are invariant to output. Variable costs‚ such as labor and sales commissions‚ increases as output increases; VC are variant to output Sunk costs are costs that cannot be avoided; avoidable costs are its opposites; some sunk costs need not be fixed. Marginal costs is the incremental cost for each additional unit of output
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in the middle of a one- year rental contract for your factory that requires you to pay $ 500‚000 per month‚ and you have contractual labor obligations of $ 1 million per month that you can’t get out of. You also have a marginal printing cost of $ 0.35 per paper as well as a marginal delivery cost of $ 0.10 per paper. If sales fall by 20 percent from 1 million papers per month to 800‚000 papers per month‚ what happens to the AFC per paper‚ the MC per paper‚ and the minimum amount that you must charge
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1. Fill in the table below. Assume TC stands for Total Cost‚ TFC as Total Fixed Cost‚ TVC as Total Variable Cost‚ ATC as Average Total Cost‚ AFC as Average Fixed Cost‚ AVC as Average Variable Cost‚ and MC as Marginal Cost. TC TFC TVC ATC AFC AVC MC Units of Output 0 -20 20 0 0 0 0 0 1 -21 20 1 21 20 1 1 2 -24 20 4 12 10 2 3 3 -32 20 12 10.67 6.67 4 8 4 -48 20 28 12 5 7 17 5 -75 20 55 15 4 11 27 6 -126 20 96 21 5 16 51 7 -168 20 148 24 2.86 21.14 42 8 -254 20
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Write your name here Surname Other names Pearson Edexcel Centre Number Candidate Number International Advanced Level Economics Unit 3: Business Economics and Economic Efficiency Friday 17 January 2014 – Morning Time: 1 hour 30 minutes You do not need any other materials. Paper Reference 6ECA3/01 Total Marks Instructions black ink or • Usein the boxesball-point pen. page with your name‚ at the top of this • Fill number and candidate number. centre in A and
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Chapter Six Businesses and Their Costs Study Questions: 1. Explain the difference between a plant‚ a firm‚ and an industry. Plant – establishments such as a factory‚ farm‚ mine or store. Firm – an organization that employs resources to produce goods/services for profit. Industry – group of firms that produce the same or similar products. 2. State the advantages and disadvantages of the corporate form of business. Advantages – most effective form of
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