What happens to the average fixed costs per paper

Assignment Help Business Economics

Reference no: EM13160107

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1,250,000 per month that you can%u2019t get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.1 per paper. If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the Average Fixed Costs per paper?

Reference no: EM13160107

Questions Cloud

Evaluate your opportunity cost : Label the points representing choice C and choice D. If you are at choice C, what is your opportunity cost of increasing your chemistry score?

Employee commitment in today business organizations : Why is it so difficult to achieve high levels of employee commitment within today's business organizations? Discuss the factors that are working against commitment and the potential benefits to be achieved through high commitment.

A turbine operates adiabatically with super-heated steam : A turbine operates adiabatically with super-heated steam entering at T1, and P1, with a mass flow-rate, m(dot). The exhaust pressure is P2 and the turbine efficiency is gamma

Net income to increase-decrease : At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,200,000. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by?

What happens to the average fixed costs per paper : If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the Average Fixed Costs per paper?

Calculate the ph of a solution : Calculate the pH of a solution prepared by mixing 250. mL of 0.174 m aqueous HF (density = 1.10 g/mL) with 38.7 g of an aqueous solution that is 1.50% NaOH by mass (density = 1.02 g/mL).

How many atoms are in a sample of molybdenum : How many atoms are in a 256.3 g sample of Molybdenum?

Acceptance for an organization development program : What strategies might be used in gaining acceptance for an organization development program?

What is the value of reworking the action figures : What is the value of reworking the action figures and selling them to the toy store? Is the fact that Toys Ahoy! spent $6.25 to produce each action figure relevant to your value computations?

User Account

All Pages