When there is a change in activity level, then:
- Total variable cost changes.
- Variable per unit remains constant.
<h3>What happens when activity level changes?</h3>
As a result of the change in activity level, the variable cost will change in total because it increases when there is an increase in number of units produced.
The unit variable cost will however remain the same as the company incurs the same variable cost per unit produced.
Find out more on variable cost per unit at brainly.com/question/26373444.
Answer:
100
Explanation:
Goal programming is an optimization technique that allows for multiple, normally conflicting objectives and then attempts to solve each goal sequentially to a satisfactory level. In goal programming, differential variables are being used.
Since the goal programming problem had two goals. Goal number 1 was to achieve a profit of $2,400 and goal number 2 was to have no idle time for workers in the factory. The optimal solution to this problem resulted in a profit of $2,300 and no idle time
This means that goal number 2 was achieved since the optimal solution resulted in no idle time. But goal number 1 was not achieved because a profit of $2300 was achieved in the solution instead of $2400.
Therefore, the value for the objective function for this goal programming problem = 2400 - 2300 = 100
Answer:
D) increase at a faster rate than the costs associated with those sales.
Explanation:
If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.
Answer:
A
Explanation:
if its wrong than forsure d
Answer: above-average profits
Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.
Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.
Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.
