Business, 22.07.2019 17:10, ethan62211

The metal shop produces 2.1 million metal fasteners a year for industrial use. at this level of production, its total fixed costs are $320,000 and its total costs are $522,000. the firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. a customer has made a one-time offer for an additional 50,000 units at a price per unit of $0.08. should the firm sell the additional units at the offered price? why or why not? a. yes. the offered price is less than the marginal cost. b. yes. the offered price is equal to the marginal cost. c. yes. the offered price is greater than the marginal cost. d. no. the offered price is less than the marginal cost. e. no. the offered price is greater than the marginal cost.

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answered: RebeccaBloop8578

d.No. The offered price is less than the marginal cost.

Explanation:

Current production level = 2,100,000 units

Increase of 5% = 2,100,000 X 5% = 105,000 units

Within this limit no additional fixed cost will be incurred.

Current fixed cost up to this limit of production will be static.

Variable cost per unit at current level = $522,000 - $320,000 = $202,000

Current variable cost per unit = $202,000/2,100,000 units = 0.096

Additional order of 50,000 units at price of $0.08 per unit will not even recover the marginal cost per unit by $0.096 - 0.08 = $0.016

Loss on 50,000 units = $0.016 X 50,000 = $800

Therefore the order shall not be accepted.

Final Answer

d.No. The offered price is less than the marginal cost.

answered: Guest

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answered: Guest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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The metal shop produces 2.1 million metal fasteners a year for industrial use. at this level of prod...