Isidora’s Clinic Is Considering a Time-Driven Activity-Based Costing System -Refer to the Figure

question 113

Multiple Choice

Isidora’s Clinic is considering a time-driven activity-based costing system. Given the following data:
$\begin{array}{|l|l|l|l|l|}\hline \text { Resources } & & & \text { Activities } & \text { Time/Activity } \\\hline\text { Supervision } & \$ 60,000 & & \text { Treating patients } & 1.40 \mathrm{hr} . \\\hline \text { Supplies and uniforms } & \$ 80,000 & & \text { Providing hygienic care } & 1.00 \mathrm{hr} \\\hline \text { Salaries } & \$ 350,000 & & \text { Respond to requests } & 0.60 \mathrm{hr} \\\hline \text { Computer } & \$ 10,000 & & \text { Monitor patients } & 1.00 \mathrm{hr} \\\hline \text { Monitor } & \$ 25,000 & & &\\\hline \text { Total } & \$ 525,000 \\\hline\text { Total nursing hours } \\\text { (practical capacity) } & 15,000 \\\hline\end{array}$

-Refer to the figure.What is the capacity cost rate?

• A)$4
• B)$25
• C)$35
• D)$105

Understand the relationship between average total cost, marginal cost, and the pricing strategies of a monopolist.

Understand the relationship between marginal cost and selling price for profit maximization in monopolies.

Identify and describe the condition where a monopolist is producing at a point where price equals average total cost (ATC) and its implications.

Analyze profit maximization strategies and outcomes using diagrams and data.

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Definitions:

Competitive Price Takers

Firms in a competitive market that accept the prevailing market price and have no power to influence it.

Economic Profits

The excess of a firm's total revenues over its total costs, including both explicit and implicit costs.

Water Markets

Systems or platforms where water rights can be traded amongst users, typically to allocate water resources efficiently.

Supply Problems

Challenges related to the provision or availability of goods and services, which can stem from production issues, distribution disruptions, or resource scarcity.