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Question 7 If fixed cost at \( Q=100 \) is \( \$ 130 \), then fixed cost at \( Q=0 \) is \( \$ 0 \) fixed cost at \( Q=0 \) is less than \( \$ 130 \) fixed cost at \( Q=200 \) is \( \$ 260 \) fixed cost at \( Q=200 \) is \( \$ 130 \) it is impossible to calculate fixed costs at any other quantity

Ask by Sherman Wells. in the United States
Mar 14,2025

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The fixed cost at \( Q=200 \) is \$260.

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Beyond the Answer

Fixed cost is independent of the quantity produced, meaning it remains constant regardless of the level of output. So, if the fixed cost at \( Q=100 \) is \$130, it will also be \$130 when \( Q=0 \) or at any other quantity like \( Q=200 \). The nature of fixed costs is that they don’t fluctuate with production levels, making it easy to predict costs. When considering businesses, understanding fixed costs is essential for budgeting and pricing strategies. A clear grasp of fixed and variable costs can help companies set prices effectively, manage profits, and make informed decisions about scaling production. So, always keep an eye on those fixed costs - they stick around whether you’re cranking out products or not!

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The following transactions have been extracted from the books of a parthership ZT Traders (partners Zel an Tees) at the financial year end 28 February 20.9. The business applies a \( 60 \% \) mark-up on cost on all goodi The bank account has a credit balance at all times. REQUIRED: Analyse the following transactions under the headings in your Answer Book. The first one has been done a an example for you. TRANSACTIONS: E.g.: Paid the electricty account of R2 500. 1. Received a direct deposit from a tenant for rent of \( R 5500 \). 2. Provision for bad debts of R3 200 must be reduced to R2 900. 3. Bought packing materials on credit for R1 600 less \( 8 \% \) tade discount. 4. Paid the creditor (see No. 3) by EFT the amount owing less \( 5 \% \) discount. 5. Debtor, J. Mkhize, deposited an amount of R4 248 after a discount of \( 11,5 \% \) had been deducted. 6. Partner Zel took goods with a selling price of R5 000 for his own use. 7. Parther Tees withdrew his monthly salary of R12 000. 8. Partner Zel tuansferred a Gr balance of R 45000 on his current account to his capital account. 9. Trading stock with a selling price of R90 000 must be written down to \( 10 \% \) below the cost price as the stock is now old. 10. Dehtor, J. Mshala, claimed an allowance of \( 15 \% \) on goods with a cost price of R3 600 as they were damaged. Alowed her this claim. 11. A creditor with a debit balance of R500 must be transferred to her debtors account. 12. Depreciation must be written off equipment of R4 200. 13. A credit sale of R950 to F. Fly was recorded in the account of B. Bea in error. 14. Transfer the gross profit of R120 000 . 15. Allocate the interest on capital to partner Zel of R15 000. 16. The final division of profit to partreer Tees was R65 000. 17. The Pre-Adjustment Trial Balance showed insurance of R 33800 . This included an annual premium of R13 200 paid on 1 November 20.8. 18. The consumable stores on hand on 1 March 20.8 for 2920 was not reversed. Make the correction. 19. Partner Zel's personal insurance of \( R 750 \) was debited to the insurance account. Paid the rates deposit of R7 800 to the municipality.
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