Answer: Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.
Answer:
5 years
Explanation:
5 years is long term hope this helps
Answer:
Foreign stock markets are frequently characterized by controlling shareholders for the individual publicly traded firms. Which of the following is NOT identified by the authors as typical controlling shareholders?
family (such as in France) is consider not to be part of the foreign stock markets characterized by controlling shareholders.
Explanation:
The amount of utilities cost for July that appears on the flexible budget is12,500*$0.33 = $4.
<h3>Flexible budget </h3>
A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.
<h3>How do you calculate flexible budget?</h3>
To do this, multiply the total production output by the variable cost of each unit produced. For example, if the total production output is 1,000 products and the variable cost for each unit is $25, the total variable cost is $25,000. You can also calculate average variable costs that are not related to production.
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Common between optimization using total value and optimization using marginal analysis is:
Both techniques require the conversion of all costs and benefits into a common unit of measurement.
What is the principle of optimization at the margin?
The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off.
Optimization using total value:
calculates the change in net benefits when switching from one. alternative to another.
optimization using marginal analysis:
calculates the net benefits of. different alternatives.
Total Value analysis :
has a wide range of applications. The analysis can be used to assess an organization's key impacts, or provide more detailed information such as an assessment of the life cycle impacts of a product.
marginal analysis:
is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.
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