Scenario 1-3 It Costs a Company $35,000 to Produce 700 Graphing Calculators

question 147

Short Answer

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3. What is the company's average cost?

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.

Cash-flow Management

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.

Net Profit Margin

A financial metric that measures how much of every dollar earned in revenue is translated into profit after all expenses are deducted.

After-tax Profit

The amount of net income left over after all taxes have been deducted from total revenues.