We find the traditional home land line telephones disappearing and being replaced by smart phones. This is driven by which of the following parameters. select the right answer from below. Higher performance/price ratio Lower performance/price ratio Lower fixed cost/recurring cost ratio Higher fixed cost/recurring cost ratio

We find the traditional home land line telephones disappearing and being replaced by smart phones. This is driven by which of the following parameters. select the right answer from below. Higher performance/price ratio Lower performance/price ratio Lower fixed cost/recurring cost ratio Higher fixed cost/recurring cost ratio

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1E

See similar textbooks

Similar questions

Henleigh Hill, CFO of HH Corp., uses a decentralized company processing center for check collection. She estimates that the total annual cost of collections is currently $300,000. Henleigh is considering switching to a centralized company processing center, but she is worried about the required increase in fixed costs. Use the following assumptions to determine the maximum fixed cost of the centralized company processing center that would make Henleigh indifferent between a decentralized or centralized company processing center. Number of checks processed per year = 450,000 Average face value of checks = $1,000 Collection float for centralized processing = five days Variable processing cost per check for centralized processing = $0.25 Opportunity cost rate = 5 percent
A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be increased by 10 percent if subcontractors are employed). The plant is normally operated at about 80 percent of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay the skilled workers higher overtime wage rates. For output levels up to 80 percent of capacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above 90 percent and up to 100 percent of capacity, the additional units cost an additional 25 percent over the unit variable costs for outputs up to 80 percent of capacity. For production above 100 percent and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80…
A manufacturing plant has a potential production capacity of 1,000 units per month(capacity can be increased by 10 percent if subcontractors are employed). The plantis normally operated at about 80 percent of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay theskilled workers higher overtime wage rates. For output levels up to 80 percent ofcapacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above90 percent and up to 100 percent of capacity, the additional units cost an additional25 percent over the unit variable costs for outputs up to 80 percent of capacity. Forproduction above 100 percent and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80 percent…
A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be increased by 10 percent if subcontractors are employed). The plant is normally operated at 80 percent capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay the skilled workers higher overtime wage rates. For all output levels up to 80 percent capacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above 90 percent and up to 100 percent capacity, the additional units costs an additional 25 percent over the unit variable costs for outputs up to 80 percent capacity. For production above 100 percent capacity and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80 percent…
Analyse the various issues which influence industry standards used in project costmanagement.
Which of the following best defines a sunk cost? A. Costs that have already been incurred and cannot be recovered. B. The variable costs associated with increasing production. C. The total costs including both fixed and variable costs. D. Future costs that are expected to be incurred as a result of current decisions.
Classification analysis as the method for approximation of variable and fixed costsa) Is using for cost classification at fixed and variable elements an expert approximationb) Is using for cost classification at direct and indirect (overhead) elements empirically-statistical approaches. c) is using for cost classification at fixed and variable elements mathematical and statistical approachesd) None of the previous answers is correct.
Explain which cost concept should be used in decision making and why. The explanation should include the following terms/relationships;accounting profit,economic profit as wellownership of factors of production
Fletcher Company has three products with the following characteristics: Product A Product B Product C Monthly sales in dollars $60,000 $80,000 $100,000 Contribution margin ratio 20% 40% 16% If total units sold remain unchanged, but the sales mix shifts more heavily toward Product C, one would expect the overall contribution margin ratio to: a)Remain unchanged b)Decrease c)Increase d)None of these
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form AVC = a + bQ + cQ2 and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. DEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 35 0.8713 108.3 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 3.14 0.0036 Q −2.80 0.90 −3.11 0.0039 Q2 0.20 0.05 4.00 0.0004 If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)? a. $1,348 b. $463.20 c. $171.40 d. $2,348
Which one is corect? An understanding of the underlying behavior of costs helps in all of the following EXCEPT: sales volume can be better estimated process inefficiencies can be better identified and as a result improved true costs can be better evaluated costs can be better estimated as volume expands and contracts
Cincinnati Pizza produced and sold 1,500 pizzas last month and had total variable ingredient costs of $3,900. If production and sales increase by 10% next month, which of the following statements is true? answer choices Variable ingredient costs per unit is expected to be $2.86. Total variable ingredient cost is expected to be $3,510. Total variable ingredient cost is expected to be $4,290. Total variable ingredient cost is expected to be $3,900.