The capital stock is fixed at 40 units, the price of capital is$15 per unit, and the price of labor is $80 per unit. Unitsof Labor Units of Output 5 10 15 20 40 100 180 220 If thefirm produces 30 units of output, what is average fixedcost? {Financial Accounting}

Average Fixed Cost (AFC) is the fixed cost per output unit produced. It is calculated by dividing…

Answered: The capital stock is fixed at 40 units,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. Units of Labor Units of Output 5 10 15 20 40 100 180 220 If the firm produces 40 units of output, what is average fixed cost?
What is average fixed cost?
If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume the wage per unit of labour is $10 and the cost of the capital is $50. Total output per Labour per period period 1 10 2 30 3 90 4 132 150 If this firm is producing 20 units of output per period its marginal cost i... O a. $1.00. O b. $0.17. O c. $0.50. O d. $1.67. O e. $10.00.
The firm's profit equal? General accounting
Want to this question answer general Accounting
If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)
Consider a company that pays out all its earnings (i.e., the payout ratio = 1 or plowback/retention ratio=0). The required return for the firm is 13%. Compute the intrinsic P/E if its ROE is 15%. Compute the intrinsic P/E if its ROE is 20%. Discuss why your answers to parts (a) and (b) differ or do not differ from one another. Suppose that the company’s ROE is 13%. Compute its intrinsic P/E value. Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.
General Accounting
1. The function of a company's product to produce output at the level of input use is Q = -1/3x3 + 9x3 + 70. If the input price x used is IDR. 800, - per unit, while the output price is IDR. 10, - per unit, specify: a. The amount of input that must be used by the company in orderto produce the amount of output that provides maximum finance! How much is the output? b. What is the average size of the company?

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The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. Units of Labor Units of Output 5 10 15 20 40 100 180 220 If the firm produces 30 units of output, what is average fixed cost? {Financial Accounting}