James started a kiosk business in 2021 whose main product was milk. Suppose James started the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
James started a kiosk business in 2021 whose main product was milk. Suppose James started the business from his own premises from which his rental earning was AUD 3,000 per month. The table below represents James' April 2021 business summary: 1 Milk truck Milk stainless cans Milk cooler Item 2 litre milk packs (Number of packs bought depend on demand. Assume this is the average expenditure per month) Cost AUD 40,000 AUD 20,000 AUD 10,000 AUD 40,000 Milk production per day 500 litres Note: Assume 56,000 litres are produced per month. Also assume all the milk produced is bought Use the table to answer the questions below. a. Calculate James's fixed cost and average fixed cost. b. Calculate James's variable cost and avarege variable cost. (2 Marks) c. Assume James sells milk at AUD 2 per litre. Calculate John's accounting profit and economic profit for the month of January. James started a kiosk business in 2021 whose main product was milk. Suppose James started the business from his own premises from which his rental earning was AUD 3,000 per month. The table below represents James' April 2021 business summary: 1 Milk truck Milk stainless cans Milk cooler Item 2 litre milk packs (Number of packs bought depend on demand. Assume this is the average expenditure per month) Cost AUD 40,000 AUD 20,000 AUD 10,000 AUD 40,000 Milk production per day 500 litres Note: Assume 56,000 litres are produced per month. Also assume all the milk produced is bought Use the table to answer the questions below. a. Calculate James's fixed cost and average fixed cost. b. Calculate James's variable cost and avarege variable cost. (2 Marks) c. Assume James sells milk at AUD 2 per litre. Calculate John's accounting profit and economic profit for the month of January.
Expert Answer:
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Posted Date:
Students also viewed these accounting questions
-
Use the following data to answer the questions below: a. Calculate the marginal cost and average variable cost for each level of production. b. How much would the firm produce if it could sell its...
-
Use the table to answer the questions below. Schedule Y-1- If your filing status is Married filing jointly or Qualifying widow(er) a. What is the tax for taxpayers filing jointly with a combined...
-
Use the figure to answer the questions that follow. (a) What is μ? (b) What is Ï? (c) Suppose that the area under the normal curve to the right of x = 75 is 0.0668. Provide two...
-
Create the GUI in Fig. 14.2 (you do not have to provide functionality). Figure 14.2 Printer GUI Ok Printer. Bugalicious X9000 O Image O Selection Cancel Text O Current page Code ComboBox Setup....
-
Summarize the arguments regarding the consistency or inconsistency of ethical egoism.
-
What are the principal forms of misleading advertising that are prohibited by the Competition Act, and what are the consequences?
-
Reconsider the data from Problem 51. What is the capital recovery cost of Alternative 3 for a 6-year life? Data from problem 51 Alternatives 1, 2, and 3 have lives of 3, 4, and 6 years, respectively....
-
The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31. Other data:1. Insurance expires at the rate of $450 per month.2. A count of supplies shows...
-
Let X be a binomial random variable with the probability distribution f(x) shown below. Find the probability distribution of the random variable Y=x. f(x)= Bere 3-x x=0,1,2,3 elsewhere Complete the...
-
Hill-O-Beans Coffee Company blends four component beans into three final blends of coffee: one is sold to luxury hotels, another to restaurants, and the third to supermarkets for store label brands....
-
John, Alex, and Sam have assessed utilities for the following decision problem (payoff in dollars State of Nature Decision Alternative $2 53 di 20 50 20 d2 80 100 100 The indifference probabilities...
-
WHY STARBUCKS SUCCEEDED IN CHINA: A LESSON FOR ALL RETAILERS Much has been written about Starbucks successful strategy in China. The company is opening a store a day and aims to have 5,000 stores in...
-
Can you answer these questions? Price Why do you think the product is priced the way it is? Think about the competition here. What are the advantages and/or disadvantages of the pricing options?...
-
A single force acts on a 0.61 kg particle-like object in such a way that the position of the object as a function of time is given by x = 4.7t-2.1t2 + 3.6t3, with x in meters and t in seconds. Find...
-
What is the most important reason why reusable launch vehicles have typically been more expensive than expendable ones?
-
Why do some companies emphasize career planning with current employees?
-
A business has a 60-day cash conversion cycle. Annual disbursements are $12 million and the negotiated cost of financing is 12 percent. If the company reduces the average age of its inventory by 10...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
On December 31, 2015, the following data were accumulated to assist the accountant in preparing the adjusting entries for Problem Solved Realty: a. Fees accrued but unbilled at December 31 are...
-
The following were selected from among the transactions completed by East Coast Trading Post during December of the current year: Dec. 3. Purchased merchandise on account from Hillsboro Co., list...
-
JD Industries wrote off the following accounts receivable as uncollectible for the year ended December 31, 2015: Customer Amount Eva French .......... $ 1,500 Lance Landau ......... 11,200 Marcie...
-
Smart Manufacturing Systems Pty Ltds accountant recently prepared the following data from the companys accounting records for the year ended 30 June 2019. Factory overhead is applied at the rate of...
-
During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities. Required (a) Calculate the relationship between factory...
-
Telecommunications company Toronto Ltd signed a 15year deal to sell capacity on its cable network to a rival company for $200 million. The deal was completed on the last day of Toronto Ltds financial...
Study smarter with the SolutionInn App