Answer:
Break-even point in miles= 8,302 miles
Explanation:
Giving the following information:
Income per mile= $0.45
Fixed costs= $2,200
Unitary cost per mile= $0.185
<u>To calculate the break-even point in miles, we need to use the following formula:</u>
Break-even point in miles= fixed costs/ contribution margin per mile
Break-even point in miles= 2,200 / (0.45 - 0.185)
Break-even point in miles= 8,302 miles
Answer:
A. Product APEX
Explanation:
This is the correct answer.
Answer: C. Identify a single overhead rate as the predetermined overhead rate.
Explanation:
Activity based costing works by assigning indirect and overhead costs to the activities that caused the costs to be incurred and then assigning those activities to the products those activities helped produce such that indirect and overhead costing is more accurate.
The steps involved include, tracing and allocating overhead costs to activity coat pools, identifying and classifying the major activities involved in the manufacture of specific products, and assigning overhead costs to products based on cost drivers.
It does not include identifying a single overhead rate as the predetermined overhead rate. This is a step is in Standard Costing.
Answer:
A. A Novation
Explanation:
A novation is contract law or business law term that can represent the following situations:
1. Replacing an already established obligation to perform with another obligation
2. Adding a new obligation to perform to the already established obligation
3. Replacing a party to an agreement who is supposed to perform an obligation with a new party.
Replacing a party to an agreement with a new party
The kind of novation that has occurred in the question is the third type where the obligations of Craig to design a website for Molly has been replaced with the agreement by Eric to take Craig's place and design the website for Molly.
The Novation clause is that: all parties involved in this type of contract must consent to the changes