$400‚000 per day. Assume that total fixed cost equals $1‚000‚000. Calculate the values for the following four formulas: • Total Variable Cost = (Number of Workers * Worker’s Daily Wage) + Other Variable Costs • Average Variable Cost = Total Variable Cost / Units of Output per Day • Average Total Cost = (Total Variable Cost +Total Fixed Cost) / Units of Output per Day • Worker Productivity = Units of Output per Day / Number of Workers Calculations: Total fixed cost equals $1‚000‚000 TVC=
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pile-driving industry. The introduction of the CMI Cushion Pad has the ability to change the entire industry for its consumers; some of its more prominent features include the capabilities to significantly lower labor and equipment costs‚ decrease the total amount of pads being used (effectively eliminating waste)‚ and reduce environmental safety concerns amongst the workforce due to the non-toxicity of the pads’ material. CMI has recently conducted two field testings of its Cushion Pads‚ with incredible
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served is $0.26. Required: 1. Fill in the following table with your estimates of total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent. | Cups of Coffee Served in a Week | | 1‚800 | 1‚900 | 2‚000 | Fixed Cost | $1‚100 | $1‚100 | $1‚100 | Variable Cost | $0.26 | $0.26 | $0.26 | Total Cost | $1568 | $1594 | $1620 | Average cost per cup of coffee served | 0.871 | 0
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Economics & Global Business Applications‚ EGT 1‚ Task 1 A. Explanation of profit maximization The total revenue‚ TR‚ is the overall amount of all sources of a business’s income. It consists of total sales or profit‚ over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example‚ if a business decides to retail another product and the total revenue does increase‚ thus the marginal revenue would be greater than zero. However‚ if the business
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description‚ sizes‚ details‚ seam types and the condition of delivery can be found. In the general specification model can be found a sample of the fabric and thread‚ an overview of the haberdashery used for the skirt and the washing instructions. The total operational time of the skirt is calculated in centiminutes. 1 Centiminute is equal to 0.01 minute. The operational time to produce a skirt is 384 centiminutes‚ this means that it will take 3.84 minutes to produce one single skirt. All the production
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CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1 The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2 Not necessarily. For a one-time-only special order‚ the relevant costs are only those costs that will change as a result of accepting the order. In this case‚ full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3 Two examples of pricing decisions with
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Niche bakeries are becoming more popular though the last few years. These types of bakeries specialize in a certain type of baked goods and showcase them for their customers as well as having other types of more common baked goods available. This is the type of business that I would create. My niche bakery would specialize in individual cupcakes and pies as well as baking larger cakes and pies to order. Local customers will consist of area residents‚ business owners and students that can easily
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BREAK EVEN POINT 1. Selling Price per Unit:The amount of money charged to the customer for each unit of a product or service. 2. Total Fixed Costs: The sum of all costs required to produce the first unit of a product. This amount does not vary as production increases or decreases‚ until new capital expenditures are needed. Fixed Costs: Fixed costs are those business costs that are not directly related to the level of production or output. In other words‚ even if the business has
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The cost of shipping unit of product to the company’s customers is a selling cost. As such‚ it cannot be classified as a product cost. 3 CORRECT Within the relevant range: A) both total variable costs and total fixed costs will remain constant. B) both total variable costs and total fixed costs fluctuate. C) fixed costs per unit will remain constant and variable costs per unit will fluctuate. D) variable costs per unit will remain constant and fixed costs per unit
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EOQ order policy can help Carl’s company minimize their annual total spent‚ and optimize their ordering cost and inventory holding cost. (…) 2. Should Carl’s pursue the price break? Why or why not? If Carl would order 200 or more at a time then the unit cost will reduce $16. Conclusion: We would recommend to pursue price break for A233 circuit board if demand of Carl’s computer is constant. It will help to reduce the total annual cost by $3‚375.36. (…) 3. What do you think the sources
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