Answer:
d. Selling Price
Explanation:
Break even point is calculated as 
Thus, break even point in units only in two cases,
- Fixed cost is reduced that is decreased,
- Contribution per unit is increased.
Now, here the options are
a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.
b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.
c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.
d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.
Correct option is
d. Selling Price
Answer:
$328,400
Explanation:
Cost of Goods Manufactured is calculated in Manufacturing Account as follows :
<em>Cost of Goods Manufactured = Beginning Work In Process Inventory + Total Manufacturing Costs - Ending Work In Process Inventory</em>
therefore,
Cost of Goods Manufactured = $13,000 + ($121,000 + $61,000 + $15,000 + $111,000 + $24,000) - $16,600
= $328,400
Answer:
(a) $40
(b) $24,000
(c) 40%
Explanation:
Given that,
Selling price = $100 per unit
Variable costs = $60 per unit
Fixed costs = $2,500 per month
Contribution margin per unit:
= Selling price - Variable costs
= $100 per unit - $60 per unit
= $40
Total Contribution margin:
= Contribution margin per unit × No. of units sold
= $40 × 600 units
= $24,000
Contribution margin ratio:
= (Selling price - Variable costs) ÷ Selling price
= ($100 per unit - $60 per unit) ÷ $100 per unit
= 0.4 or 40 %
Answer:
c. 2.71, and supply is elastic.
Explanation:
The formula to compute the price elasticity of supply is shown below:
Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)
where,
Change in quantity supplied is
= Q2 - Q1
= 100 t-shirts - 75 t-shirts
= 25 t-shirts
And, an average of quantity supplied is
= (100 + 75) ÷ 2
= 87.5
Change in price is
= P2 - P1
= $20 - $18
= $2
And, the average of price is
= ($20 + $18) ÷ 2
= 19
So, after solving this, the price elasticity of supply is 2.71
Based on the fact that this country is having a high rate of unemployment, then it is inside (below) its PPF.
<h3>What is the Production possibility frontier?</h3>
This is the graphical illustration that shows the way a nation produces goods and services based on the resources that it has available.
It shows the mix of goods that would efficient use the allocated resources. A country is at unemployment if they are inside the PPF.
Read more on the Production possibility frontier here:
brainly.com/question/6571859
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