Answer:
a. decrease by $58,800 per month
Explanation:
The computation is shown below;
<u>
Particulars Amount </u>
Contribution from product X $94,800 ($28 - $22) × 15,800 units
Less: Fixed cost -$108,000
Net loss avoided -$13,200
Non-avoidable fixed cost $72,000
The Total cost in case the product fall $58,800
Hence, the correct option is a.
Answer:
$417 A.
It is an adverse variance.
Explanation:
Fixed factory overhead volume variance is the difference between budgeted output at 100% normal capacity and actual production volume multiplied by standard fixed overhead cost per unit.
Formula
Fixed factory overhead volume variance = (budgeted standard hours for 100% normal capacity - Actual standard output hours) × standard fixed overhead cost per unit.
Calculation
Since 5900 units of a product was produced in 3.546 standard hours per unit, total actual standard hour is therefore;
= 5900×3.546
=20,921 hours
Overhead cost per unit = $1.10 per hour
Hours at 100% normal capacity = 21,300 hours.
Recall the formula for fixed factory overhead volume variance is =(budgeted standard hours for 100% normal output- actual standard output hours)× standard fixed overhead per unit.
Therefore;
Fixed factory overhead volume variance =(21,300 hours - 20,921 hours)× $1.10
=379 hours × $1.10
=$417 A
It is therefore an adverse variance.
Answer: Please refer to Explanation
Explanation:
The Dominant Strategy in a game is the strategy that a player will choose that will provide them with the highest payoff regardless of what the other player does.
In the above, the dominant strategy will be for RAPHAEL to choose LEFT.
By choosing left Raphael makes a payoff of 4 if Susan picks Left as well and a Payoff of 6 if Sudan picks Right. This is better than him picking Right and he will get a Payoff of 3 if Susan chooses Right as well.
The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.
The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.
This is because Raphael will pick Left as it maximises their payoff and Susan will then pick a strategy that gives her the highest payoff based on Raphael's decision which is to go RIGHT.
Answer:
C. Price changes in markets provide suppliers incentives to supply goods to markets.
Explanation:
Price changes in the market has two perspective,
- increase in price, will increase the productivity for retailers,
- decrease in price, will decrease the productivity for retailers.
With increase the retailers expect to earn more, and with decrease the retailers expect to earn less.
This is a normal market condition and scenario, this does not link to any kind of political or legal environment, although the change in price might be due to political or legal policies, but the increase or decrease in productivity, is not related to any political or legal influence.
