Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a manufacturing firm has fixed costs of $2 million and variable costs of $8 per unit, then what will its average costs be if

If a manufacturing firm has fixed costs of $2 million and variable costs of $8 per unit, then what will its average costs be if it produces 200,000 units? What will its profits be if it sells those 200,000 units for $21 each?

a.$22, $600,000

b.$20, $600,000

c.$18, $600,000

d.$19, $1 million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essentials Of Finance And Accounting For Nonfinancial Managers

Authors: Edward Fields

3rd Edition

0814436943, 9780814436943

More Books

Students also viewed these Accounting questions

Question

I felt sorry for the clerk.

Answered: 1 week ago

Question

How would you rate Indra Nooyi using the Blake-Mouton grid?

Answered: 1 week ago