The Metal Shop produces 2.1 million metal fasteners a year for industrial use. At this level of production, its total fixed costs are $320,000 and its total costs are $522,000. The firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. A customer has made a one-time offer for an additional 50,000 units at a price per unit of $0.08. Should the firm sell the additional units at the offered price? Why or why not? a. Yes. The offered price is less than the marginal cost. b. Yes. The offered price is equal to the marginal cost. c. Yes. The offered price is greater than the marginal cost. d. No. The offered price is less than the marginal cost. e. No. The offered price is greater than the marginal cost.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Metal Shop produces 2.1 million metal fasteners a year for industrial use. At this level of production, its total fixed costs are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The Arcadia Company has 200,000 shares of cumulative, seven percent, $200 par value preferred stock outstanding.
Answers (2)
You decide to cash out your CD early. What will happen? You will be able to invest in other stocks. You will be penalized with high fees. You will roll it over into a 401 (K). You will reinvest the proceeds into a money market account.
Answers (1)
Which term is a measure of the reliability of a research study? 1. internal consistency 2. externality 3. concurrence 4. subjectivity
Answers (1)
Beverage marketers have realized for decades that packaging plays a major role in how beverages are perceived. in fact, studies indicate that consumers cannot even identify their "favorite" brand of beer without the package/label.
Answers (1)
The estimated amount of depreciation on equipment for the current year is $8,200. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank.
Answers (1)
New Questions in Business
The amount paid for stock is the most a shareholder can lose in the corporate form of ownership. a. True b. False
Answers (1)
Brannon Inc. manufactures ceiling fans and uses activity-based costing. Each fan has 20 separate parts. The direct material cost is $70, and each ceiling fan requires 4 hours of machine time to manufacture.
Answers (1)
A broker lists a property for $87,500 at 7% commission on the first $50,000 and 5% on the balance. The property sells for 4% less than asking price. What commission was earned?
Answers (1)
A primary market would be utilized when: O investors buy or sell existing securities. O securities are initially issued. O shares of common stock are exchanged O a commission must be paid on the transaction.
Answers (1)
Basic earnings per share is computed using:A. The actual number of common shares outstanding at the end of the year. B. A weighted-average of preferred and common shares. C. The number of common shares outstanding plus common stock equivalents. D.
Answers (1)