Barnard Enterprises Had an Average Cost of $8

question 125

Essay

Barnard Enterprises had an average cost of $8.60 during a month when 75,000 units were produced. When production was 125,000 units several months later, the average cost dropped to $6.98.
Required:
(a.) Determine the fixed and variable portions of production costs.
(b.) What will unit cost be when production equals 110,000 units?

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Definitions:

Behavioral Therapy

A type of psychotherapy that aims to modify harmful behaviors through conditioning and learning strategies.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by patterns of inattention and/or hyperactivity-impulsivity that interfere with functioning or development.

Behavioral Therapies

Psychotherapeutic approaches that focus on identifying the reinforcements and punishments contributing to a person’s maladaptive behaviors and on changing specific behaviors.

Pervasive Developmental Disorders

Disorders characterized by severe and persisting impairment in several areas of development.