Selected Financial Data for Spark Enterprises Follows for a Production

question 194

Essay

Selected financial data for Spark Enterprises follows for a production level of 120,000 units:

a.Calculate the variable cost per unit.
b.If Flash Corporation makes 75,000 units,calculate the fixed cost per unit.
c.If Flash Corporation makes 160,000 units,calculate the total variable costs.
d.If Flash Corporation makes 180,000 units,calculate the total costs.

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Definitions:

Rational Consumers

Individuals who make decisions to maximize their utility or satisfaction based on the information available and their own preferences.

Marginal Utility

The change in total satisfaction or utility that a consumer experiences as a result of consuming one additional unit of a good or service.

Framing Effects

The influence on an individual's decision-making caused by the way information is presented, rather than just the information itself.

Status Quo

The existing state of affairs; in prospect theory, the current situation from which gains and losses are calculated.