Everything Looks Like a Nail, Inc. is a manufacturing company that produces hammers. The company faces a number of different fixed and variable costs in the short run. Determine which of the costs are examples of fixed costs and which are examples of variable costs. Assume the company cannot easily adjust the amount of capital that it uses and that salaries are negotiated only once per year. Fixed costs Variable costs lease on building liability insurance costs industrial equipment costs cost of metal used in manufacturing interest on current debt cost of wood used in manufacturing annual salaries of top management postage and packaging costs Answer Bank Incorrect

Everything Looks Like a Nail, Inc. is a manufacturing company that produces hammers. The company faces a number of different fixed and variable costs in the short run. Determine which of the costs are examples of fixed costs and which are examples of variable costs. Assume the company cannot easily adjust the amount of capital that it uses and that salaries are negotiated only once per year. Fixed costs Variable costs lease on building liability insurance costs industrial equipment costs cost of metal used in manufacturing interest on current debt cost of wood used in manufacturing annual salaries of top management postage and packaging costs Answer Bank Incorrect

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

See similar textbooks

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Inventory Costing Methods—Periodic MethodThe Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 10 Purchased 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Answer Cost of Goods Sold: Answer B. Last-in, first-out: Ending Inventory Answer Cost of Goods Sold: Answer C. Weighted-average cost: Ending Inventory Answer Cost of Goods Sold Answer
A company produces two products. FC = Total Fixed costs = $580VC1= variable costs from product 1 = $920VC2= variable costs from product 2 = $805TR1= revenue from product 1 = $900TR2= revenues from product 2 = $900In the short run, what should the firm do? a.Produce product 1 but not 2 b.Produce neither c.Produce both d.Produce product 2 but not 1
Suppose a firm decided to leave a high-cost/ high-tax state like California to reloacte to a low-cost / low-tox state like Nevada. They are doing this because they will be able to save 30 percent on the cost of their labor (employees) and becouse the Nevada state government is giving them generous state tax incentives for new machinery and free land. This decision would be a good example of economies of scale. (Telsa car battery factocy story) True or False
the Party Connection prepares complete party kits for various types of celebrations. It is currently operating at 80% of its capacity. It costs The Party Connection $20.50 to make a packet that it sells for $25.00. It currently makes and sells 84,000 packets per year. Detailed information attached The Party Connection has received a special order request for 25,000 packets at a price of $23 per packet to be shipped overseas. Suppose the following information is discovered with further analysis:o The per unit overhead cost of $0.50 is 50% variable ($0.25) and 50% fixed ($0.25).o The per unit Selling costs of $1.75 is 26.67% variable ($0.47) and 73.33% fixed ($1.28).o Administrative expenses would not change.• Should the Party Connection accept this special order?
. Minimum efficient scale occurs at an output of 10000 d. 35000 22000 e. 43000 c. 28000 At which output level does the firm begin to experience diseconomies of scale? 10000 d. 35000 22000 e. 43000 28000 The firm added capital, increased its output and shifted from ATC1 to ATC2. By how much did it decrease its cost per unit? _________________
Ouput Total Cost 0 $ 10 1 20 2 28 3 38 4 53 5 73 6 98 Refer to the provided table. The total variable cost of producing 5 units of output is Multiple Choice $10. $14.60. $63. $73.
What type of cost is included in economic costs, but not included in accounting costs?a. Explicit costsb. Negative costsc. Normal profitd. Marginal coste. Unit costs