Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
The correct answer is “Pricing below competitors”.
Explanation:
It is given that the organization is operating with a lower cost structure as compared to its competitor and it is also enjoying the economies of scale. Since lower cost structure makes the organization capable to keep the price of its product lower as compared to its competitor. Moreover, the lower price of a commodity will attract new customers. Consequently, its sales volume will increase.
Answer:
Simple Interest=P*r*n= $20 million * 0.18 * 1= $3.6 million
Therefore amount accumulated= $20 million + $3.6 million = $23.6 million
Amount accumulated through Compound Interest=P×(1+r) ^t
= $20 million( 1+0.18/12)^12= $23.912 million
Explanation:
Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period.
Bobo's demand curve is elastic hence his purchasing ability is easily influenced by a slight change in the price of the product
<span>You would want to get a broadband internet based phone that's based off a Linksys modem system. A multiple line phone per employee/contractor with voice mail capacities would be a must. For contracted employees (those who work for the business, but are not office-based) need mobile cell phones with the internet, email, and group and individual capabilities so they can be reached easily.</span>