The Manager of Greene Enterprises,Inc $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$

question 44

Multiple Choice

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost (AVC) function to be $A V C = 88 - 0.026 Q + 0.000003 Q ^ { 2 }$ Greene Enterprises faces total fixed costs (TFC) of $300,000.If Greene Enterprises produces 6,000 units of output,what is estimated short-run marginal cost (SMC) ?

• A)$45.60
• B)$62.40
• C)$83
• D)$92
• E)$100

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Definitions:

Ending Inventory

The cumulative worth of all stock, encompassing raw materials, items in the process of being made, and completed products that a company possesses at the conclusion of a financial period.

Specific Identification

A method for inventory valuation where each item in inventory is identified and tracked individually.

Inventory Accounting

Inventory accounting is the process of valuing and tracking physical stock and includes methods such as FIFO (First In, First Out) and LIFO (Last In, First Out).

Merchandise Returns

Merchandise returns are transactions in which customers return previously purchased goods to the seller, usually for a refund or store credit.