Answer:
C) the accord or the original obligation.
Explanation:
Based on the scenario being described within the question it can be said that Scott can sue Renee on the accord or the original obligation. This is mainly due to the fact that Renee did not pay the newer arrangement within the three days, and therefore owes Scott the total amount of $25,000 as was agreed by both in the original contract, but since Scott also agreed on the $21,000 he can decide which he would want to sue for.
The "American System of manufactures":
a. originated among entrepreneurs in the Old Northwest before spreading to New England.
b. was nearly derailed by Chief Justice John Marshall’s hostility to economic development.
c. was centered entirely on agricultural machinery.
d. referred to the production of specialty handmade goods by highly skilled artisans.
e. owed a great deal to the mass production of interchangeable parts.
Answer:
E
Explanation:
owed a great deal to the mass production of interchangeable parts.
The American system of manufacturing first appeared in the 1800s. the U.S. military had made expansions in the manufacturing methods that were already in existence to produce a newer and more efficient system.
the American manufacturing system was based on
1. the use of interchangeable parts and
2. use of mechanization.
After adopting the use of these two into manufacturing, the military was able to make more products using less resources.
Answer:
The correct answer is E. owed a great deal to the mass production of interchangeable parts.
Explanation:
The "American System of manufactures" owed a great deal to Eli Terry's development of interchangeable parts in clockmaking.
Jiminy's cricket farm issued a 20-year, 10 percent semiannual bond 4 years ago. the bond currently sells for 97 percent of its face value. the company's tax rate is 38 percent. suppose the book value of the debt issue is $40 million. in addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $40 million, and the bonds sell for 52 percent of par. what is the company's total book value of debt?
Answer:
The correct answer is $80 million.
Explanation:
According to the scenario, the computation of the given data are as follows:
First debt, Book value = $40 million
Second debt, Book value = $40 million
So, we can calculate the company's total book value by using following formula:
Total book value = First debt, Book value + Second debt, Book value
= $40 million + $40 million
= $80 million
A customer's account appears as follows:
$100,000 MV Long
$ 40,000 DB
$ 60,000 EQ
The securities in this customer's account INCREASE in value by $25,000, and the debit balance is decreased by $5,000. After these changes, what is the buying power in the account?
(A) $27,500
(B) $35,000
(C) $55,000
(D) $90,000
Answer:
(C) $55,000
Explanation:
Market Value : $125,000
$125000/2= $62,500
$62,500- $35,000 debit= $27,500 excess equity
Hence:
$27,500 excess equity x 2= $55,000 Buying Power
Therefore the buying power in the account is $55,000
Condor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft required 25,000 hours to complete. Condor believes an incremental unit-time learning model with an 82% learning curve best reflects the company's production efficiency. Condor just received a contract to make fifteen identical aircraft. What will be the expected unit time for the sixteenth aircraft?
Answer:
11,303 Hrs
Explanation:
Now here, we can use the learning curve formula, which is as under:
Y = a * X^ (log of learning rate / log 2)
Here
Y is the average time taken by each unit
a is the time taken by the first unit which is 25000 hrs
X is the number of units to be produced which is 16 unit (Including the first unit)
Learning Rate is given and is 82%
So by putting values we have:
Y = 25,000 hrs * 16 ^ (Log 0.82 / Log 2)
Y = 25,000 * 16^(-0.2863)
Y = 25,000 * 0.45212 = 11,303 Hrs
Crola, a cell phone manufacturing company, adds a new in-built feature to its cell phones. With the help of this feature, users can now recall messages that they may have accidentally sent to another person. To make use of this feature, the users need to go to the settings of the cell phone and make a few changes. The change made by Crola in its product is an example of a _____.
Answer:
Dynamic continuous innovation
Explanation:
Based on the scenario being described it can be said that the change made by Crola in its product is an example of a Dynamic continuous innovation. This term refers to when a company/organization decides to launch the next logical product in it's pre-established line of brand products, using all the resources at their disposal. Which is what Crola has done by releasing the next cell-phones with a new feature.
Answer:
Dynamic continuous innovation
Explanation:
Dynamic continuous innovation can be defined as the process of a firm producing or releasing its next sequence of product or product feature from its already existing product/production line.
Simply put, dynamic continuous innovation is the production of the next product in a production line.
In the case of Crola, it released a new feature in its cells phones that can be changed in the settings. This means that the feature is aimed at continually making the phone services have a wider range of use and gives the user more control.
Cheers
The concept of relative comparative advantage's origins lie in: a.Adam Smith's work of 1776. b.David Ricardo's work of 1776 c.The Wealth of Nations book, published in 1887 d.On the Principles of Political Economy and Taxation book, published in 1817.
Answer:
The answer is D.
Explanation:
The concept of RELATIVE comparative advantage's origins lie on the Principles of Political Economy and Taxation book, published in 1817. So option D is the answer
While the concept of ABSOLUTE comparative advantage's origin lie on Adam Smith's work of 1776.
What is comparative advantage?
Comparative advantage is that the economy's ability of a country to supply goods and services at a lower cost than that of trading partners. a country with comparative advantage can sell goods or services at a cheaper price.
Which term describes when a person who is not the intended recipient captures data?
adware
active threat
network security
passive threat
Answer:
b
Explanation:
Answer:
D. Passive Threat
Explanation:
A passive threat occurs when a person who is not the intended recipient captures data in some way.
Brett is a manager at a small publishing firm. He supervises the work of 30 employees. He is friendly to every employee. He strives to promote a favorable work environment where everyone feels comfortable. However, he does not expect them to perform exceptionally well. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Brett using in this scenario?
A) The middle-of-the-road style.
B) The country club style.
C) The authority-compliance style.
D) The impoverished style.
Answer:
B) The country club style.
Explanation: The country club style this is the type of leadership often described as high people-low results, in this style of leadership the leader puts clear and a better part of his or her focus on the wellbeing of his or her followers,he or she does everything possible to make them happy because he or she believes that their happiness determines how well they will perform.
Red Empire Inc., a large multinational company owned by two partners, is active in the petroleum, capital market, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries. The company has multiple brands and a large product portfolio under its banner. Which of the following terms would best describe this company?
A. a flagship brand
B. a single-business firm
C. a dominant-business firm
D. a conglomerate
Answer:
D. A conglomerate
Explanation:
A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.
Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed, and have created a detailed design of the research project. Their next logical step will be to:________.
a. develop a budget.
b. begin to collect data.
c. summarize their pre-liminary conclusions to present to managers.
d. begin recommending changes to the new-product line based on ideas developed in the design phase.
Answer:
B.
Explanation:
Begin to collect data.
After the research objective has been stated a a detailed design of the research project has been created, the next step for Wanda and Jim is to collect data.
We can collect two types of data, primary and secondary data. Primary Collection of data involves working in the field and collecting informations through interviews, surveys and focus groups. Secondary data are already existing data and can be gotten from websites, government agencies, research firms and social networks.
Answer:
The best answer is "B"
begin to collect data.
Explanation:
In conducting an effective market research, you first have a well defined objective knowing exactly the Problem your research is aimed at solving then you determine the research design with the preferred research tool to be used by you.
When this is implemented data is collected afterwards and in the case of Wanda and jim, they have already put into consideration these steps and next logical step for them is to "collect data" after which it is analyzed.
Panther Products sponsors a defined benefit pension plan. The following information pertains to that plan: Service cost for 2018 $ 480 million Actual and expected return on plan assets for 2018 105 million 2018 amortization of prior service cost 15 million Interest on pension obligation for 2018 150 million Retiree benefits paid during 2018 30 million The pension expense that Panther should report in its 2018 income statement is:
Answer:
$540 million
Explanation:
The computation of the pension expense i.e to be reported in the income statement is shown below:
= Service cost + interest expense on pension obligation - expected return on plan assets + amortization of unrecognized prior service cost
= $480 million + $150 million - $105 million + $15 million
= $540 million
We simply applied the above formula so that the accurate pension expense could come
How do banks create money?
Fill in the blanks to complete the passage about the business of banking.
The main function of _______ banks is to accept deposits and then to lend the same money (minus _______) back out. Banks make a profit by charging a higher interest rate on _______ than the interest rate they pay on _________. Through the loan process, banks are actually able to ________ money.
Answer:
Commercial banks, required reserve, loans, deposits, create.
Explanation:
The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.
The major function of commercial banks is
1. Accepting deposits from people and business organzations.
2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.
Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.
Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.
Commercial banks create money by accepting deposits and lending the majority of these deposits out to other customers. This cycle, known as the fractional reserve banking system, effectively creates more money in the economy than the amounts originally deposited.
Explanation:The main function of commercial banks is to accept deposits and then to lend the same money (minus reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.
When a customer deposits money into a bank, the bank keeps a fraction of that deposit as a reserve and lends out the remaining amount. This lent amount will eventually be deposited back into the bank or another bank, and a portion of it will again be lent out. This cycle continues and in effect, creates more money in the economy than what was originally deposited. This is known as the fractional reserve banking system.
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Georgia Ray is the founder of the departmental stores chain, Ether Inc. She ensures that the products in her stores are ethically and responsibly sourced. Most products are therefore 100 percent organic and manufactured from recycled material. Also, her company purchases handicrafts from nonprofit organizations supporting the aged. Georgia's belief is that her company should be able to support the community at large. Which of the following terms best describes Georgia Ray?
A. category captain
B. social entrepreneur
C.headhunter
D. trade creditor
Answer: social entrepreneur.
Explanation:
Social entrepreneur is an individual who establishes an enterprise on order to solve social problems in the society or effect social change.
Social entrepreneur acts as a change agent in the society by creating sustainable solutions which can change the society for the betterment. Social entrepreneur attempt to bring social equilibrium in order to avoid economic disparity in the society.
Georgia Ray ensuring that her products in the stores are ethically and responsibly sourced shows that she's a social entrepreneur.
Ways similar to overproduction that result in increasing operating income include: A. deferring maintenance to accelerate production B. All of these answers are correct. C. switching production to products that absorb the least amounts of fixed manufacturing costs D. delaying items that absorb the greatest amount of fixed manufacturing costs
Economies of scale involve reducing costs as production increases by optimizing resource use. Overproduction can lead to inefficiencies like higher costs due to increased demand.
Economies of scale
occur when the long-run average cost of producing output decreases as total output increases. One way to achieve this is by substituting labor with capital in a more efficient manner. Overproduction may lead to inefficiencies, such as increased average variable costs due to paying workers overtime and higher maintenance costs from overworked machines.
What happens on the money balances market (the demand and supply for money) when the Federal Reserve conducts an open market purchase of bonds that is unanticipated. How will this impact the nominal interest rate and the quantity of money held by the public?
Answer:
Increased Money supply and decreased rates
Explanation:
When the Federal reserve buys the bonds on the Open market operations, the cash is disbursed by the Fed to the seller of bonds which in case increases the money that is supplied in the market and hence the quantity of money held by general public. The interest rate will ultimately decrease as the money supply is more and people tend to spend more than save.
Hope this clear things up.
Goodluck.
Answer:
Decrease rates and increase in the supply of money.
Explanation:
Base on the scenario been described in the question, operations, if the federal government wishes to increase the flow of money in the economy, what is does is that, it buys bonds from the open marke, in so doing, it disburse cash to economy through which the seller of the bonds will get and it will increase the money been increase in open market so money will enough in the hands of individuals.
Mark, a senior editor at Logi Corp, is in charge of editing the articles written by Bruno, a newly hired employee. He notices many grammatical errors in Bruno's articles and decides to write a feedback message to Bruno. Which of the following guidelines should Mark follow when composing the message?âA) âHe should include specific, verifiable facts.B) âHe should convey intent to get even.C) âHe should not maintain neutrality.D) âHe should use evaluative words that present opinions.
Answer:
A) He should include specific, verifiable facts.
Explanation:
Mark is a senior editor and is editing work written by Bruno.
He will want to provide an objective feedback to Bruno on his work that will not discourage him from doing his best. But also effectively state all the errors in the work that needs correction.
The best way to do this will be by including specific verifiable facts.
This will give a neutral response and maintain a good work environment.
When providing feedback on Bruno's articles, Mark should include specific, verifiable facts, maintain neutrality, and use evaluative words that present objective opinions.
Explanation:When composing a feedback message to Bruno, Mark, the senior editor, should follow certain guidelines to provide constructive criticism. Firstly, he should include specific, verifiable facts to highlight the grammatical errors and provide evidence for his feedback. Secondly, Mark should maintain neutrality in his message, avoiding conveying any intent to get even. Finally, he should use evaluative words that present objective opinions rather than subjective judgment.
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If you were to compare and ideal market efficiency with an unregulated monopolist. Assuming that firms maximize profits, how will the price and output policy compare? a. The price will be too low and output too small. b. The price will be too low and output too large. c. The price will be too high and output too large. d. The price will be too high and output too small.
The price and output policy will compare as the price will be too high and the output too large. The correct option is c.
What is an output?Output can be understood as several goods or services produced in a specific period, for instance, a year. For a business producing one good, output could simply be the number of units of that good produced in each period, such as a month or a year.
The business’s output could also be approximated by the revenues from sales of the product, adjusted for price changes. For industry, the output is a measure of all the goods and services produced in a given time by businesses in that industry and sold either to consumers or to businesses outside that industry.
For example, the output can be the number of tons of sugar or boxes of cookies produced in a year by a business or industry.
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A property was sold for $750,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 40/60 with his broker, how much commission is paid to the real estate agent...?
Answer:
The real estate agent's commission is $9,000
Explanation:
Selling price= $750,000
6% commission = $45,000
Listing broker's share from the commission (50/50) = $22,500
Buyers broker's share from the commission (50/50) =$22, 500.
Real Estate agent's share from the buyers broker's commission is 40% of $22,500.
So we need to find the real agent's share.
(40/100) * 22,500
2/5 * 22,500
= $9,000.
Therefore,the real estate agent's share is $9,000.
Final answer:
The real estate agent responsible for the sale of the property would receive a commission of $9,000, calculated by first determining the total commission from the sale, then splitting it between the brokers, and finally applying the agent's commission split with their broker.
Explanation:
To calculate the amount of commission the real estate agent receives, we need to apply a series of percentage calculations based on the sale price of the property and the agreed splits of the commission.
First, determine the total commission earned on the property sale: Total Commission = Sale Price imes Commission Rate.
Second, divide the total commission equally between the listing broker and the buyer's broker: Broker Commission = Total Commission imes 50%.
Third, calculate the real estate agent's share of the buyer's broker's commission: Agent Commission = Broker Commission imes 40%.
Applying these calculations:
Total Commission = $750,000 imes 6% = $45,000.
Broker Commission = $45,000 imes 50% = $22,500.
Agent Commission = $22,500 imes 40% = $9,000.
Therefore, the real estate agent who was responsible for the sale would receive $9,000 in commission.
Despite the fact that Priya performs really well in her workplace, she ends up getting only an average performance rating because her peers perform even better. This is an example of _______.
a. central tendency
b. halo leniency
c. contrast
d. similar to me
Answer:
C. Contrast
Explanation:
Contrast effect in performance evaluation occurs when an individual is evaluated in respect to other individuals present in the job rather than evaluating the individual on the basis of the job requirements and fulfillment. This usually results in the person doing the evaluation overestimating or underestimating the abilities of the individual he or she is evaluating. In this case, Priya ends up being average even though she did well when checked with her job requirements because she was compared to others that performed even better.
The following lots of Commodity Z were available for sale during the year. Beginning inventory 10 units at $49 First purchase 15 units at $55 Second purchase 53 units at $55 Third purchase 18 units at $57 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?
Answer:
$1,205
Explanation:
Given:
Beginning inventory = 10 units at $49
First purchase = 15 units at $55
Second purchase = 53 units at $55
Third purchase = 18 units at $57
Ending inventory of commodity is 23 units
Total purchases = 10 + 15 + 53 + 18 = 96 units
So, units of commodity Z sold = 96 - 23 = 73
Since, LIFO method is used, last commodity purchased would be sold first.
So, after selling 73 units, 13 units at $55 and 10 units at $49 is left as ending inventory.
Value of ending inventory = 13 × 55 + (10 × 49)
= $1,205
To calculate the ending inventory balance using the LIFO method, start with the most recent purchases and work your way back. Add the quantities and costs of each purchase, along with the beginning inventory, to find the total value of the ending inventory balance.
Explanation:The LIFO (last-in, first-out) method assumes that the most recent purchases are sold first. To calculate the ending inventory balance using the LIFO method, we need to start with the most recent purchases and work our way back. The third purchase of 18 units at $57 will be included first, followed by the second purchase of 53 units at $55. Then, we add the remaining units from the first purchase of 15 units at $55, and finally, the beginning inventory of 10 units at $49.
So, the ending inventory balance using the LIFO method can be calculated as follows:
18 units x $57 = $1,02653 units x $55 = $2,91515 units x $55 = $82510 units x $49 = $490Adding these amounts together, the ending inventory balance using the LIFO method is $5,256.
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the purpose of a financial intermediary is to help channel funds
a. from one bank to another
b. from saving bonds to building projects
c. from savers to borrowers
d. from stocks to bonds
Answer:
a. from one banks to another
Explanation:
Because of its reputation for excellent flavor and increasing energy, DBM Beverages is able to charge a price premium for its products. Which of the following dimensions of brand equity does this example illustrate? Multiple Choice perceived quality brand strategy brand connections perceived bonuses brand loyalty
Answer:
Perceived quality
Explanation:
Perceive quality can be defined as the perception of a customer about the greater quality of a product as against other alternatives of the product in the market and its purpose of production.
Simply put, perceived quality is defined as the superiority of a product by a customer in comparison with other alternatives in the market.
This perceived quality ensures that a product can be highly priced since it has the edge over other alternatives and as such customers will still pay to have it regardless of the price.
From the above question, DBM beverages as a result of perceived quality is able to charge a premium price for its products because its products are certified to have a greater quality compared to its alternatives.
Cheers.
____________is considered a good indicator that helps media planners compare potential for usage of a product/brand across demographic groups. It is derived by dividing the percentage of users in a demographic segment by the percentage of population in the same segment and the multiplying the quotient by 100.
A. CPM.
B. Index number.
C. CPP.
D. GRP.
Answer:
B. Index number
Explanation:
Ellen is employed by Software Inc., a software company located in the Silicon Valley of California, as a software manager. Her contract is for three years with compensation of $200,000 per year. If Ellen is fired after one year, Ellen _______.
Answer and Explanation:
Ellen should look for job or business that is similar to his former work so that Ellen does the least harm so, Ellen must join a software company.
If Ellen left the company, Allen would have to make up for the loss of the company, but in this case the company has fired Ellen, due to which she will not have to pay any compensation.
Ellen might have a claim for breach of contract if fired without cause, depending on her employment contract and California law, potentially entitling her to compensation for the remaining two years.
If Ellen is fired after one year, she may potentially have a breach of contract claim against Software Inc. Assuming her employment contract guarantees a three-year term of employment with a compensation of $200,000 per year, being terminated after one year without cause could entitle her to compensation for the remaining term of the contract unless specified otherwise in the contract terms regarding early termination. The specific outcome would depend on the contract's terms and conditions, California employment law, and potentially any severance agreement that might be offered by the employer.
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending? Explain.
the minimum required change in taxes will be greater than the minimum required change in government spending
tax multiplier (mpc/mps = 0/8/0.2=0.4) is smaller than the government spending multiplier (1/mps= 1/.2=5) because of the initial increase in disposable income caused by the decrease in income tax will be saved rather than spent
Answer:
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than required change in government spending.
When the allowance method of accounting for uncollectible accounts is used, then
Answer:
Bad debt expense is recorded in the same year as the credit sale.
Explanation:
Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.
This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.
On December 31, Leann Corp. paid $5,120 on an installment note that requires annual payments. The outstanding loan balance on January 1 was $50,000; the effective interest rate is 8%. The journal entry to recognize the payment should include debits to
Answer:
Dr Interest expense $4,000
Dr Notes payable $1,120
Explanation:
The $5,120 repaid comprised of both interest and principal repayments,hence there is need for the amount to be split into the two appropriate accounts.
The interest payable on the loan on yearly basis ,based on the outstanding loan balance of $50,000 is $4,000(8%*$50,000),hence the balance of $1,120($5,120-$4,000) represents the actual repayment of principal,as a result the notes payable account should be debited with $1,120.
When employees actually use their vacation time a.Vacation Benefits Expense is debited, and Vacation Benefits Payable is credited. b.Vacation Benefits Payable is debited. c.Vacation Benefits Payable is credited. d.Wages Expense is debited and Cash is credited.
Answer:
The correct answer in this case would be option d. or Wages Expense is debited and Cash is credited.Explanation:
Now,considering that the vacation time of the employees already comes under the paid vacation leaves,it will be automatically registered or recorded in the respective accounting books.As the employer has to pay the wages or salaries to the employees during the their vacation,the Wages benefit account is debited and the Cash that it has to pay to the employee is credited.This accounting entry basically implies that the employer has to pay the outstanding wages to the employees to use their vacation time which implies as an increase through debit and cash outflow which the company has to pay to the employees which is understandably recorded as credit.Sal is currently in the market for a new car. He considers various factors before making his purchase; for example, he considers gas mileage, power-train warranty, safety records, status, price, and convenience. He then makes a final list of six possible vehicles to purchase. However, after thinking about all these things, he dismisses them and decides instead to purchase the highest price vehicle. Based on this information, what is the most likely reason for Sal's decision?
Answer:
He assumed that the highest price car must also be the most prestigious and he would like to project a high-status image
Explanation:
Prestige pricing is a pricing strategy in which the prices of goods or services are set at a higher level in order to give off the appearance of a high quality product. This strategy works because customers will pay higher prices for the right image and will not investigate whether the price actually reflects the value of the good or service.
From the scenario presented above, Sal has based his purchase decision on the fact that a high price for a commodity will automatically translate to a high value, and that the product will be the most prestigious because it is expensive.
Assume fixed costs are 470 and labor costs $20 per unit. The first laborer produces 20 units of output. Subsequent hires add 5 units less to production than the previous worker. Thus the second worker adds 15, the third adds 10 etc. What is the average variable cost of output when one worker is hired?
Answer:
$1 per unit
Explanation:
fixed costs $470
labor costs $20 per worker
first worker
produces 20 units,
total cost $490 / 20 units = $24.50 per unit
variable cost = $20 / 20 units = $1 per unit
second worker
produces 15 units
total cost $510 / 35 units = $14.57 per unit
variable cost = $40 / 35 units = $1.14 per unit
third worker
produces 10 units
total cost $530 / 45 units = $11.78 per unit
variable cost = $60 / 45 units = $1.33 per unit
fourth worker
produces 5 units
total cost $550 / 50 units = $11 per unit
variable cost = $80 / 50 units = $1.60 per unit
Answer:
$1
Explanation:
Given
Fixed cost=$470
Variable cost(labor per unit)=$20
Labor 1=20 units
Labor 2=20+15=35 units
Labor 3=20+10=30 units
Average variable cost=variable cost/output
Therefore,
Average variable cost of output when one worker is hired
Average variable cost(AVC)=variable cost/output
AVC=$20/20 units
=$1
The average variable cost refers to the total variable cost per unit. It is calculated by dividing total variable costs by total output.
A change in the output causes a change in the variable cost.