Define cost structure for a construction company A) Total fixed cost expressed as a percent of...
Define cost structure for a construction company
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Homework Answers
B) Total fixed cost expressed in dollars and the total variable cost expressed as a percent of revenue
Explanation:
In cost structure, variable cost is always expressed as a percentage of revenue because variable cost is dependent upon the level of the revenues generated by a business. Whereas fixed cost is not dependent upon revenue. Whether the company earns revenue or not, the fixed costs remains the same. Level of revenue is irrelevant to determine the fixed costs. Therefore, fixed cost is to be expressed in dollars rather than as a percentage of revenue.
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Define cost structure for a construction company
A)
Total fixed cost expressed as a percent of...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven revenue in dollars A. $100 B. $1,000 C. $1,500 D. $3,000 E. not enough information need data on total revenue and total costs to determine CMR
Marginal Cost (dollars) Marginal Physical Total Total Product of Variable Fixed Variable Input Fixed Input Input...
Marginal Cost (dollars) Marginal Physical Total Total Product of Variable Fixed Variable Input Fixed Input Input Variable Cost Cost Output (units) (units) (units) (units) (dollars) (dollars) $500 $0 $500 $200 $500 $400 $500 $600 $500 $800 $500 $1000 Refer to Exhibit 21-3. The average variable cost of producing 45 units of output is a. S2.44 (E) b. S1.60. c. $2.00. d. S1.33. e. $13.33.
6. Total cost is calculated as a.the sum of total fixed cost and total variable cost....
6. Total cost is calculated as a.the sum of total fixed cost and total variable cost. b.the product of average total cost and price. c. the sum of all the firm's explicit costs. d. the sum of average fixed cost and average variable cost 7. The formula for the total fixed cost is a.TFC = TC + TVC. b.TFC = TVC -TC c.. TFC = TC/TVC. d.TFC = TC -TVC 8.The Lawn Ranger, a landscaping company, has total costs of...
Suppose a company has fixed costs of $54,400 and variable cost per unit of 1/3x +...
Suppose a company has fixed costs of $54,400 and variable cost per unit of 1/3x + 333 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2065 - 2/3x dollars per unit. (a) Find the break-even points. (b) Find the maximum revenue. (c) Form the profit function P(x) from the cost and revenue functions. Find maximum profit. (d) What price will maximize the profit
9. A company provided the following information: $500,000 $30 Sales revenue Variable cost per unit Contribution...
9. A company provided the following information: $500,000 $30 Sales revenue Variable cost per unit Contribution margin ratio Total fixed cost 0.40 $110,000 Using the above information, determine the: a) Selling price per unit b) Breakeven point in units and dollars. Prove the results. c) Contribution margin per unit d) Margin of safety in dollars and as a percent
A construction company has total revenues of $250,000, total construction costs of $175,000, variable general overhead...
A construction company has total revenues of $250,000, total construction costs of $175,000, variable general overhead of $5,000, and fixed general overhead of $45,000 for the year. What are the contribution margin and the contribution margin ratio for the company?
b. Average variable cost, average fixed cost, marginal cost and average cost are necessary for the...
b. Average variable cost, average fixed cost, marginal cost and average cost are necessary for the analysis of the cost structure of the firm. Define each of these terms and show how they are calculated c. Describe the relationship between the marginal product and the total product of a firm
Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of...
Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company? a. 250 units b. 3,600 units c. 375 units d. 2,400 units 8. Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 55 percent and total fixed costs of $6,875. How many units must be sold in order to...
Suppose a company has fixed costs of $51,200 and variable cost per unit of 1 3...
Suppose a company has fixed costs of $51,200 and variable cost per unit of 1 3 x + 333 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1965 − 2 3 x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided by total output. B. Average total cost always falls as output increases. C. Average fixed cost equals average total cost plus average variable cost. D. Average variable cost is always greater than average fixed cost. 2) As output increases, average fixed cost A. remains constant. B. always decreases. C. decreases, then increases. D. increases, then decreases. 3) Average total cost minus average variable cost...
3. Total fixed costs are $1,000, the price is $30, unit variable cost is $20. Breakeven revenue in dollars A. $100 B. $1,000 C. $1,500 D. $3,000 E. not enough information need data on total revenue and total costs to determine CMR
Marginal Cost (dollars) Marginal Physical Total Total Product of Variable Fixed Variable Input Fixed Input Input Variable Cost Cost Output (units) (units) (units) (units) (dollars) (dollars) $500 $0 $500 $200 $500 $400 $500 $600 $500 $800 $500 $1000 Refer to Exhibit 21-3. The average variable cost of producing 45 units of output is a. S2.44 (E) b. S1.60. c. $2.00. d. S1.33. e. $13.33.
9. A company provided the following information: $500,000 $30 Sales revenue Variable cost per unit Contribution margin ratio Total fixed cost 0.40 $110,000 Using the above information, determine the: a) Selling price per unit b) Breakeven point in units and dollars. Prove the results. c) Contribution margin per unit d) Margin of safety in dollars and as a percent
A construction company has total revenues of $250,000, total construction costs of $175,000, variable general overhead of $5,000, and fixed general overhead of $45,000 for the year. What are the contribution margin and the contribution margin ratio for the company?
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