Answer:
BEP units 205,882 pounds
BEP dollars $102,941.17
Explanation:
0.50 - 0.33 = 0.17 contribution per pound
This means each pound generates 0.17 of contribution.
Now, we can calculate the pounds needed to afford the fixed cost.
35,000/0.17 = 205,882.35 pounds
for the BEP we will multiply by the sales price:
205,882.35 pounds x $0.5 = $102,941.17
It's C, just took the test
Answer: An increase in the Interest rates and the cost of building the station
Explanation:
Before setting out to do business, most companies and investors calculate the cost of setting up the business and what they stand to gain when the business does well and when it doesn't. Most of these analysis are done when the business is being put into consideration. When there is a change in cost of any of the items put into consideration, the business would either be carried out or cancelled. What could discourage the Black oil company would be either an increase in interest rates or cost of building the station.
Answer:
Brand recognition
Explanation:
Brand recognition is the extent to which a consumer can correctly identify a particular product or service just by viewing the product or service's logo, tag line, packaging or advertising campaign.
Answer:
D. General Office Administrative Costs
Explanation:
A Profit Center
A profit center represents a business unit or department in an organisation that generates revenue, profits or losses.
A Direct Fixed Cost
A direct fixed cost represents a cost that is directly traceable to a product, a service or to a center. In this question, the consideration is to identify the option that does not represent a cost directly traceable or directly incurred by the profit center.
General Office Administrative Costs
In accounting, the rule of the thumb is that general office administrative costs are not directly attributable to the production of goods or services. This cost represents the costs incurred to carry out a business' day to day operations including building rent, office supplies and subscriptions among others. The right option is therefore, the General Office Administrative Costs. Put differently, it represents costs that the business will incur even without the profit center, department or unit.
The other options from are costs that are directly related to the profit center and should not be incurred if the profit center does not exist. For instance, the Manager's salary will not be incurred if there is no center and there will be no depreciation on center's equipment if the center does not exist in the first place.
