5. What is the value of the total cost? A company makes a single product with a total capacity of 400 000 litres per annum. Cost and sales data are as follows: Selling price Marginal cost Fixed costs $1 per litre $0.50 per litre $100 000

5. What is the value of the total cost? A company makes a single product with a total capacity of 400 000 litres per annum. Cost and sales data are as follows: Selling price Marginal cost Fixed costs $1 per litre $0.50 per litre $100 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

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Help with question 5 only

5. What is the value of the total cost?
A company makes a single product with a total capacity of 400 000 litres per annum.
Cost and sales data are as follows:
Selling price
Marginal cost
Fixed costs
$1 per litre
$0.50 per litre
$100 000
a.
$250 000
b.
$287 000
C.
$185 000
d.
$88 900

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