Answered: A company has a fixed cost of $200,000…

A company has a fixed cost of $200,000 and a per unit cost of $35 what is the average cost per unit if they make 400,000 units?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section8.4: Costs Of Production: Total, Average, Marginal

Problem 1ST

See similar textbooks

Related questions

Q: Gladstorm Enterprises sells a product for $48 per unit. The variable cost is $30 per unit, while…

A: Given product price = 48 $ Variable cost = 30 $ Fixed cost = 9720 $

Q: If total cost is $3000 and fixed cost is $1000 Calculate variable cost

A: The data presented in the question above is:- Total cost incurred = $3000 Fixed cost = $1000…

Q: The delivered-equipment cost for a fully equipped CNC machining system is $4.4 million. The direct…

A: Total plant cost can be calculated by using the following formula.

Q: Estimate the cost in 2011 of chemical processing equipment if the cost of a unit one-fourth its size…

A: Cost of ¼ of its size C1 = $60,000 in 2005 Exponent factor = 0.24

Q: What is the estimate of the cumulative average hours per unit required to produce the 5th unit of a…

A: Below is the given values: Learning curve = 70% First unit takes time = 53 hours

Q: Number of TVs Per Day Total Cost Per Day 0 $100 1 $180 2 $220 3 $300 4 $400 5 $520 6 $660 The…

A: Average total cost = Total cost / output

Q: impact of fixed and variable cost on break even analysis

A: Fixed and variable costs are the two costs that are considered to be an important costs that a firm…

Q: When using the Top-down Cost Estimation Approach.. Note: This is a Multiple Answer question. Select…

A: The top-down cost estimation approach is a tool used by upper-level management to estimate the total…

Q: Find the fixed cost if the total cost are 530 and the variable cost are 42

A: As per the question Total cost = 530 Variable cost = 42 Fixed cost = ?

Q: Total cost is $320 and the fixed cost is $100 Calculate variable cost

A: The data presented in the question about is:- Total cost = $320 Fixed cost = $100 Variable cost is…

Q: Using the Unit Method preliminary cost evaluation technique. Find the total cost of constructing 22…

A: Unit Method is a very simple and quick method. Number of units are counted and are then multiplied…

Q: When competition is the dominant factor in pricing a product or service, what is the best cost…

A: When pricing a product or service is determined mainly by the competition, then top down strategy…

Q: Low, medium, and high cost estimates for a 30,000 ft2 apartment building in zip code 79912 are…

A: The cost of medium apartment = $3,457,500 The cost of low apartment = $3,111,750 The cost of high…

Q: Calculate total cost when average cost is $36 and the output is 99 units.

A: We are Given that:- Average cost of the firm = $36 Total output = 99 units. We need to calculate the…

Q: Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for…

Q: Find the total cost if the fixed cost are 1300 and the variable cost are 1200

A: The monetary worth of goods and services purchased by producers and consumers is referred to as cost…

Q: The cost of a piece of equipment was $67,900 when the relevant cost index was 1457.4. Determine the…

A: Suppose, cost of the equipment (CM) is $67,900. The cost index (CI) is 1,457.4. new cost (NCM) is…

Q: Find the total cost if the fixed cost are 1349 and the variable cost are 533.

A: Fixed cost=1349 Variable cost=533

Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $7000 and the total…

A: Total cost = Fixed cost + Variable cost

Q: A recliner corporation wants to determine how many recliners it must sell in order to earn a profit…

A: Let sales be X Required sales = fixed cost + variable cost X + Profit = Price x

Q: What is the fundamental difference between estimating costs using a CER and a cost index?

A: Cost index: Cost index refers to the index which related the inventory cost of current year with…

Q: How to do a cost estimation with analysis paragraphs

A: Cost: It refers to the price that has been paid by the consumers for the goods and services. The…

Q: Nicole is an engineer on temporary assignment at a refinery operation in Seaside. She has reviewed a…

A: (a) Cost estimate is given as $430000 and equipment is itself estimated at $250000. Here,…

Q: If the total revenue is 184 units in the total profit is 132 units find the total cost?

Q: If the cost of an imported high-speed assemblyline robot is $80,000 and the in-country cost for one…

A: The cost of the robot (CR) is $80,000. The cost of new robot (CNR) is $120,000. The new robot’s…

Q: How many books will a publisher have to sell to breakeven if fixed costs are $100,000, the selling…

A: The Break-even point is that level of output, beyond which the producer starts earning supernormal…

Q: Total variable cost for 75 units is $150, the total fixed cost for 75 units is $75. The average…

A: Total cost is the sum of the total variable and total fixed cost , and average cost is the per unit…

Q: The equipment cost for removing arsenic from a well that delivers 800 gallons per minute is $1.8…

A: Given:- The equipment cost is given as $1.8 million or $1,800,000 The overall cost factor is 2.25.…

Q: A mini-wind tunnel for calibrating vane or hotwire anemometers costs $3750 in 2011 when the Marshall…

A: Cost estimation using capacity is given as: Ct = C0 (Q1/Q0)x (It/I0) Where, Ct = cost estimation at…

Q: aken an industrial design course at Dubai Men's College to help prepare for this venture. The course…

A: Fixed cost = Small factory rent + Utility + Equipment rent + Advertising cost Fixed cost…

Q: Calculate the average fixed cost when the total fixed cost are given as $2100 and the number of…

A: Basically in the given question Total fixed cost = $2100 Number of units produced = 30 units Average…

Q: Calculate variable cost if total cost is $400 and fixed cost is $120

A: The given information is as follows:- Total cost = $400 Fixed cost = $120 We need to find the…

Q: The cost of a 68 m2 falling-film evaporator was 1.65 times the cost of the 30 m2 unit. What exponent…

A: The cost capacity factor can be calculated by using the following formula:

Q: The total cost (in dollars) of manufacturing x auto body frames is C(x) = 30,000 + 200x. (A) Find…

A: Total cost : C(X)= 30000+ 200x Average cost is given by : total cost / output So in the above…

Q: For the cost function CO) = 100 - 20 - 302, the average fixed cost of producing 2 units of outout…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A company operates a summer camp. The cost data for a 12-week summer camp is as follows: Charge per…

A: Variable cost is the cost that changes with the change of production level of the company.

Q: The cost for constructing a small building in 1999 was $700,000. The construction cost index was…

A: The estimated cost can be calculated as follows:

Q: A chemical engineer at Western Refining estimated the total cost for a diesel fuel desulfurization…

A: The cost factor technique can be used to determine the equipment cost.

Q: If the total fixed cost is 4400 and the number units is 10 units find the average fixed cost?

Q: The cost of producing a certain commodity consists of 45.00 per unit for labor and material cost and…

A: The break even point in economic aspects, business — and explicitly cost bookkeeping — is the place…

Q: A company sells its product at 60 OMR per unit. Fixed cost for the company is 18000 OMR and the…

A: Given - Selling Price (P) = 60 OMR Fixed Cost (FC) = 18000 OMR Variable Cost (VC) = 25% of Total…

Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total…

A: Average fixed cost equals total fixed costs divided by output.

Q: Find the fixed cost if the total cost are 530 and the variable cost are 42.

A: Given data: Total cost, TC=530 Variable cost, VC=42

Q: In the early and conceptual design stages of a project, what are the cost estimates called?…

A: Cost estimates are considered important for a business as they need to check on to the costs before…

Q: A tire dealer buys 4000 tires a year from a local distributor. Each tire costs $75, the ordering fee…

A: The above question is based on the concept of "Economic Order Quantity". The problem is regarding…

Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $6000 and the total…

A: Total fixed cost = $6000

Q: The cost of 1500 ft2 filter vacuum rotary drum 4 years ago was 25000$. Today cost index value is…

A: Given, Cost of 1500 ft2 filter vacuum rotary drum 4 years ago was 25000$, Present cost index value…

Q: Calculate the totat variable cost if it is given that Total cost is $8200 and total fixed cost is…

A: Total cost = Total fixed cost + total variable cost

Question

A company has a fixed cost of $200,000 and a per unit cost of $35 what is the average
cost per unit if they make 400,000 units?

Expert Solution

Step 1

Step by step

Solved in 2 steps with 2 images

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Find the total cost if the fixed cost are 1300 and the variable cost are 1200
If the total fixed cost is 4400 and the number units is 10 units find the average fixed cost?
How many books will a publisher have to sell to breakeven if fixed costs are $100,000, the selling price perbook is $60, and the variable costs per book are $40?
A manufacturer sells belts for $11 per unit. The fixed costs are $1800 per month, and the variable cost per unit is $8.
If the FC is $661 and the variable cost is $450 find the total cost.
Find the fixed cost if the total cost are 530 and the variable cost are 42
ABC Company produces 100 pendants per day. The total fixed cost for the plant is $6000 and the total variable cost is $15000 per day. Calculate the average fixed cost ?
A group can charter a particular aircraft at a fixed total cost. If 36 people charter the aircraft rather than 40 people, then the cost per person is greater by $12. Whatis the fixed total cost, in dollars, to charter the aircraft?
When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because:a. the revenue per unit will increase.b. the two lines will now cross at zero. c. the profit will increase for the same revenue per unit.d. the total cost line becomes nonlinear.
What is the total annual cost of each machine using annual cost method?
The Department of Defense uses area cost factors (ACFs) to compensate for differences in construction costs in different parts of the country (and world). The area cost factor for Waianae, Hawaii is 2.19 and for Moody, Alabama is 0.83. If a cold-storage processing warehouse will cost $1,350,000 in Moody, Alabama, what would be the monetary difference in cost for a similar warehouse constructed in Waianae, Hawaii.
If the total fixed cost is given as $320 And the total variable cost is given as $ 480 What would be the total cost?