Retained earnings-rockwell corporation
Rockwell Corporation had net income of $150,000 for the year ending 2008. The company decided to payout 40% of earnings per share as a dividend. Rockwell has 120,000 shares issued and outstanding. What are the retained earnings for 2008?
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Assuming output occurs in whole units, i.e. 1, 2,3,... at what output does the low point of ATC occur and what is the ATC at that output? Show your calculations.
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When ATC is calculated at Q=6, it comes out to C(Q=6)=100/6+2+3*6=36.67. Since cost is minimum at Q=6, the ATC is minimized at Q=6. What is the total cost of an output of 500?
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