Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is used in planning, making strategic and tactical decisions, evaluating performance, and controlling operations.
Form a team consisting of four persons. Each team member will be responsible for one of the following businesses: i. Retail store that sells music CDs ii. Dental clinic iii. Fast-food restaurant iv. Auto repair shop
(b) Explain the relationship between the level of activity in each business and each of the following: total fixed costs, fixed cost per unit of activity, total variable costs, variable cost per unit of activity, total costs, and average total cost per unit of activity.

Question

23-08-2022
Business

contestada

Understanding the nature of fixed and variable costs is extremely important to managers. This knowledge is used in planning, making strategic and tactical decisions, evaluating performance, and controlling operations.
Form a team consisting of four persons. Each team member will be responsible for one of the following businesses: i. Retail store that sells music CDs ii. Dental clinic iii. Fast-food restaurant iv. Auto repair shop
(b) Explain the relationship between the level of activity in each business and each of the following: total fixed costs, fixed cost per unit of activity, total variable costs, variable cost per unit of activity, total costs, and average total cost per unit of activity.

Respuesta :

Otras preguntas

Let U = C\ {x + iy € C: x ≥ 0 and y = sin x}, which is a simply connected region that does not contain 0. Let log: U → C be the holomorphic branch of complex lo

. The time taken (in minute) to answer a Statistics question is given as follows Time taken 35 - 37 38 - 40 41 - 43 44 - 46 47 49 50 52 (minutes) Number of 6 15

According to the perspective of the looking-glass self, if Jared notices that people react favorably to his "jock" persona that he tried out in college, he will

What conclusion could be drawn from the following premises and by what rule (excluding Add., Simp., and Conj.)?² 1. (~Av~B)~(Cv~D), ~AV~B 1.. 2. (Av B) D (~B vC

Solve the following equation. For full marks your answer(s) should be rounded to the nearest cent X $505 x(1.06)³ + + $165 + 1.065 1.065 x = $ 0.00

To what extent do you agree with the view that employment law in the UK operates effectively in deterring employers from treating their staff unjustly? Illustra

Suppose that the solutions to the characteristic equation are m1 and m2. List all the cases in which the general solution y(x) has the property that y(x) → 0 as

6. assume that cane normally produces and sells 102,000 betas per year. what is the financial advantage (disadvantage) of discontinuing the beta product line?

a shift of the demand curve from d1 to d2 is called . a. a decrease in the demand for loanable funds. b. an increase in the quantity of loanable funds demande

A Web music store offers two versions of a popular song. The size of the standard version is 2.4 megabytes (MB). The size of the high-quality version is 4.2 MB

shubhamsinha3013 shubhamsinha3013 · Answer 1 · 2022-08-31T13:50:11+02:00

The relationship between the level of activity in each business and each of the following: total fixed costs, fixed cost per unit of activity, total variable costs, variable cost per unit of activity, total costs, and average total cost per unit of activity for the retail store is given below.

The total fixed cost remains unchanged when the level of activity changes by a small amount.

For example, when CD sales decline (or increase), none of the components written under the fixed cost change.

As a result, the fixed cost per unit of activity will increase or decrease inversely with the activity's reduction or increase.

The variable cost per unit fluctuates with unit activity and remains constant.

For example, regardless of how many CDs are sold, the per unit cost of purchase, packaging cost, or inventory carrying cost per CD remains constant.

As a result, the total variable cost is proportional to the number of CDs sold.

The total cost will be an addition of the total fixed cost and total variable cost and will take the form of the straight line relationship in which the unit variable cost is the slope and the total fixed cost be the intercept.

So, if 'V' be the unit variable cost, 'F' be the total fixed cost, and 'N' be the number of CDs sold, then the total cost as a function of N will be written as:

TC(N) = v.N+F

The average total cost per unit will hence be AC(N) = v + F/N.

This is an equation will take the form of an asymptote which will denote an initial very sharp reduction of average cost with an increase of N and then gradual damping of reduction.

Hence, the relationship between the level of activity in each business and each of the following: total fixed costs, fixed cost per unit of activity, total variable costs, variable cost per unit of activity, total costs, and average total cost per unit of activity is explained above.

Learn more about the fixed costs:

https://brainly.com/question/28295159

#SPJ4