All categories

2 years ago

A firm sells 2000 units at £500 each. If fixed costs are £50,000 and variable costs are £100 per unit, calculate the total costs

Business

1 answer:

Blababa [14]2 years ago

7 0

Answer: £ 250,000

Explanation:

Given: Fixed costs = £50,000

Number of units=2000

Variable cost per unit = £100

Since Total variable cost = (Number of units) x (Variable cost per unit)

=2000 x ( £100)

= £200,000

We know that,

Total cost = Total fixed cost +Total Variable cost

= £ (50,000 + 200,000)

= £ 250,000

Hence, the total costs = £ 250,000

You might be interested in

Because self-managed teams were established at the Kinex plant, the number of electrical components produced has increased by 12

alexgriva [62]

The statement that is likely true about self-managed teams at Kinex is that self-managed teams generally control all of their own administrative tasks, including hiring and firing employees.

Self-managed teams made productivity increase and workers have more positive attitudes at Kinex, as this method of management ensures greater autonomy and authority for teams, making work more flexible, faster and more cooperative.

Therefore, self-managed teams are capable of increasing employee development, valuing work, motivation and, consequently, productivity.

Learn more here:

brainly.com/question/12175622

4 0

2 years ago

Winter's Toyland has a debt-equity ratio of .57. The pretax cost of debt is 8.2 percent and the required return on assets is 14.

True [87]

Answer:

Explanation:

We solve using the Weighted average cost of capital assuming a tax rate of 0% as we have to ignore taxes. Hence, we get:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14700

Equity weight 0.43

Kd 0.082

Debt Weight 0.57

t 0

$WACC = 0.147(0.43) + 0.082(1-0)(0.57)$

WACC 10.99500%

6 0

2 years ago

Read 2 more answers

Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the informa

Elena-2011 [213]

Answer:

The project to accept is:

e. E

Explanation:

a) Data and Calculations:

Cost of capital = 10%

Mutually Exclusive Projects:

A B C E

Payback (years) 1 5 2 5

IRR 18% 20% 20% 12%

NPV (Millions) $40 $75 $35 $100

b) Project E should be preferred over all the other projects. It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital. It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.

8 0

2 years ago

On January 1, 2014 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respect

san4es73 [151]

Answer:

correct option is $750

Explanation:

solution

we know here that Net balance of opening accounts receivable is

Net balance of opening accounts receivable = $30000 - $500

Net balance of opening accounts receivable = $29500

and

Credit sales during the year is here $7500 0

and Cash payments received = 74550

uncollecectible account expenses = credit sales × % of sale uncollectible

so uncollecectible account expenses = $75000 × 1%

uncollecectible account expenses = $750

so correct option is $750

8 0

2 years ago

Joey wants to buy a $3,000 vehicle with 20 percent down for three years at 12 percent interest. what will his monthly payment be

Gnoma [55]

Joey wants to pay for a $3,000 automobile over three years at a 12.5% interest rate with a 20% down payment. His monthly payment will be $79.70.

<h3>What is interest rate?</h3>

The proportion that the lender charges as payment for the loan is known as the interest rate. The annual percentage rate, or APR, seeks to depict the cost of borrowing more accurately. The interest rate, fees, and discount points are all factored into the APR calculation.

<h3>What is the purpose of the interest rate?</h3>

An interest rate informs you of how much borrowing will cost you and how much saving will pay off. Therefore, the interest rate is the amount you pay for borrowing money and is expressed as a percentage of the entire loan amount if you are a borrower.

Learn more about interest rate: brainly.com/question/13324776

#SPJ4

5 0

1 year ago