A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost of $100.00 and a variable cost of $15.00 per unit for the first 50 units and then $25.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units? Yes What is the average variable cost for the first 50 units? $ b. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ c. What is the marginal cost per unit for the first 50 units? $ per unit. What is the marginal cost for units 51 and higher? $ per unit.

A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost of $100.00 and a variable cost of $15.00 per unit for the first 50 units and then $25.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units? Yes What is the average variable cost for the first 50 units? $ b. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ c. What is the marginal cost per unit for the first 50 units? $ per unit. What is the marginal cost for units 51 and higher? $ per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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