Using the chart, I need assistance in answering the following questions w/ explanations: (The cost of the bags, which must be ordered in batches of 100) a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? (I got 300 participants/bags) b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P – AVC). (I am not sure what to do or if I did this right. I got 113.)
Using the chart, I need assistance in answering the following questions w/ explanations: (The cost of the bags, which must be ordered in batches of 100) a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? (I got 300 participants/bags) b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P – AVC). (I am not sure what to do or if I did this right. I got 113.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Using the chart, I need assistance in answering the following questions w/ explanations:
(The cost of the bags, which must be ordered in batches of 100)
a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags?
(I got 300 participants/bags)
b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P –
(I am not sure what to do or if I did this right. I got 113.)
Transcribed Image Text:Participants Fixed Cost Variable Cost Total Cost
1700
1700
1700
1700
1700
1700
1700
1700
0
100
200
300
400
500
600
700
800
900
1000
Sheet1
1700
1700
1700
+
0
500
1200
2700
5200
9000
15000
23800
36800
55800
83000
Shereeta Ashenfelter
0
TEXTERNALI Problem Set 1 Handout for St..... Wed 10/12
1700
2200
2900
4400
6900
10700
16700
25500
38500
57500
84700
Average Variable Cost Marg. Cost
#DIV/0!
1700
5
6
9
13
18
25
34
46
62
83
5
7
15
25
38
60
88
130
190
272
TR $20
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
MR
0
20
20
20
20
20
20
20
20
20
20
TP
-1700
-200
1100
1600
1100
-700
-4700
11500
-22500
-39500
-64700
Average: -12881.81818
Count: 11
Sum: -1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education