A Metal Fabrication Company Is Pricing Raw Supplies of Aluminium

question 51

Multiple Choice

A metal fabrication company is pricing raw supplies of aluminium.The following are the costs to the company to receive one tonne of aluminium from various sources.Which source offers the best price for aluminium per tonne?

• A)3,012 Canadian dollars per tonne
• B)3,206 Australian dollars per tonne,with $0.942 CAD = 1 AUD
• C)4,998 Brazilian reals per tonne,with $0.6000 CAD = 1 BRL
• D)121,756 Indian rupees per tonne,with $0.025 CAD = 1 INR
• E)3,000 U.S.dollars per tonne,with $1.015 CAD = 1 US

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Definitions:

Total Fixed Costs

The sum of all costs required to produce any level of output that does not change with the amount produced, such as rent or salaries.

Marginal Costs

The surcharge associated with the fabrication of an additional unit of a good or service.

Short-Run Supply Schedule

The Short-Run Supply Schedule illustrates how much of a good or service producers are willing to supply at different price levels within a short time frame.

Cost Data

Information related to the expenses involved in producing a good or service, including materials, labor, and overhead costs.