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Subjects -> Economics -> Microeconomics -> Posting #20940
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Economics, Microeconomics
Year 4

need to solve the following problem


A pair of shoes that wholesales for $28.79 has the following costs:

Manufacturing Labor 2.25
Materials 4.95
Factory overhead, operating expense 8.5
Sales costs 4.5
Advertising 2.93
Research & Development 2
Interest 0.33
Net Income 3.33
                        
Which are variable, and which are fixed?

If output were to rise, what would happen to average total costs, and why?

By OTA:  Jeremy Prober, MBA

OTA Rating:  4.8/5

Your Price:  $2.19  (original value ~$11.97)

What's included:

  • Plain text response
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