Using the chart, I need assistance in answering the following questions w/ explanations: (The cost of the bags, which must be ordered in batches of 100) a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? (I got 300 participants/bags) b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P – AVC). (I am not sure what to do or if I did this right. I got 113.)
Using the chart, I need assistance in answering the following questions w/ explanations: (The cost of the bags, which must be ordered in batches of 100) a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags? (I got 300 participants/bags) b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P – AVC). (I am not sure what to do or if I did this right. I got 113.)
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6EA: Match the activity with the most appropriate cost driver. Table 6.5
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Using the chart, I need assistance in answering the following questions w/ explanations:
(The cost of the bags, which must be ordered in batches of 100)
a) If this was a profit-making activity, at the entry fee of $20, what would be the profit-maximizing quantity of participants/bags?
(I got 300 participants/bags)
b) Use the information in the table to determine the exact breakeven quantity of participants/bags for the entry fee of $20. Use the formula Qb = F/(P –
(I am not sure what to do or if I did this right. I got 113.)
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