Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
Answer: e. Both b & d
Explanation:
Economies and Efficiency can be achieved by managing costs better. This can be done by training employees more so that they may use deep skills gained to be able to keep costs low by being more efficient on the job.
A good place to reduce costs would be the common costs. The business can target these costs by optimising them which means to reduce costs while still maximizing output and value. Reducing the costs here would lead to better efficiency.
Answer:
A television network is that they send out press releases and markets it with mixed variable of different types of method acting. It also includes different stars that know each other.
Explanation:
Answer:
$13.45
Explanation:
The computation of contribution margin per unit sold is shown below:-
Contribution margin per unit = Selling price - (Direct materials + Direct labor + Variable manufacturing overhead + Sales commissions + Variable administrative expense)
= $27.90 - ($7.40 + $3.65 + $1.45 + $1.20 + $0.75)
= $27.90 - $14.45
= $13.45
Therefore for computing the contribution margin per unit sold we simply applied the above formula.