Average fixed cost formula

    • [DOC File]To make a spreadsheet for total cost, put quantities in ...

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      Use the excel spreadsheet to create schedules for total cost, fixed cost, variable cost, average variable cost, average cost, and marginal cost. Make the spreadsheet so that the initial quantity and the increment by which quantity increases can be easily changed. Use the excel spreadsheet to calculate the average cost minimizing level of output.

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    • [DOC File]Chapter 5

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      Intercept (fixed cost) $40,000 Slope (variable cost per unit) $7,500 R2 0.99 Therefore the cost formula for shipping expense is $40,000 per quarter plus $7,500 per thousand units sold ($7.50 per unit), or. Y = $40,000 + $7.50X, where X is the number of units sold.

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    • [DOC File]Solutions for Homework ** Accounting 507 Managerial ...

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      The unit cost for 220 tons mined per day is $211.82, while for 180 tons it is only $196.67. This difference is caused by the fixed cost increment from 101 to 200 tons being spread over an increment of 80 tons, while the fixed cost increment from 201 to 300 tons is spread over an increment of only 20 tons.

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    • [DOC File](Avoidable) Costs of Production: 3 examples

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      Average Total Cost = Total Cost/Output = Average Fixed Cost + Average Variable Cost; in formula: AC(Q) = AFC(Q) + AVC(Q); AVC(Q) = VC(Q)/Q and AFC(Q) = FC/Q. Finally the marginal cost evaluated at Q units of output, MC(Q), is the cost generated by the production of an extra unit of output.

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    • [DOCX File]6.1 Calculate Total Cost and Per-Unit Cost Given Various ...

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      Note that while the total cost is fixed and linear that in this case the cost per unit is not linear. That is, its graph will not be a straight line. The more hours used to complete the work, the lower the cost per hour will be. If only one hour is needed, the cost per hour is $400. If 10 hours are needed, the cost …

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    • [DOC File]Home | University of Pittsburgh

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      ^ c. Average fixed cost is 2.5. d. None of the above. 37. If the average cost equation is AC = 24Q + 0.3Q2 returns to scale are increasing for ^ a. Q < 40. b. Q > 0. c. Q < 80. d. Q > 40. 38. Average cost exceeds marginal cost only at output rates where. a. Average cost is increasing. b. Average cost is a minimum. c. Marginal cost is increasing ...

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    • [DOC File]Worksheet - Chapter One

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      Rubber Boats per Week Fixed Cost Variable Cost Total Cost Average Fixed Cost Average variable Cost Marginal Cost 1 1 2 2 3 5 4 7 5 11 6 14 7 16 8 17 9 18 10 18 4. Determine whether each of the following statement is True or False, and explain your answers. a. If average cost is greater than marginal cost, then average total cost must be increasing.

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    • [DOC File]gar003, Chapter 3 Systems Design: Job-Order Costing

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      Fixed cost element = Total cost - Variable cost element = $5,200 - ($88.89 per wedding × 20 weddings) = $3,422. Cost formula: $3,422 fixed cost per month plus $88.89 per wedding, or . Y = $3,422 + $88.89X. 263. The management of Buff Sports Stadium believes that the number of sporting events each month is a measure of activity for total clean ...

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    • [DOCX File]Comparison of Major Contract Types

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      A formula for adjusting fee based on actual costs and/or performance . Target cost . Standards for evaluating performance . A base and maximum fee . Procedures for adjusting fee, based on performance against the standards . Target cost . Fixed fee . Target cost . If CS, an agreement on the Government's share of the cost. No fee . A ceiling price

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    • [DOC File]Cost of Capital Formulas - McGraw-Hill

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      The MM formula is exact only for perpetuities, but Myers shows that the formula does not lead to large valuation errors for shorter-lived projects, provided that debt is fixed by Financing Rule 1. It’s interesting that WACC and the MM formula give the same answer for perpetuities, even under Financing Rule 1. The market-value balance sheet is: VA

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