The variable cost is calculated as -
Sales - Variable cost = Contribution Margin
Given, Contribution Margin = 25 %
Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %
25 % of Sales = Contribution Margin = $ 400,000
Sales = $ 400,000 ÷ 25 %
Sales = $ 1,600,000
Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000
An organization may perform a study to evaluate how inputs work together to complete tasks and produce organizational outputs in order to increase employee engagement, efficiency, and customer satisfaction. Workflow analysis
Workflow analysis is the practise of looking at your company's workflows to find patterns and boost productivity. This boosts customer happiness, employee engagement, and the company's competitiveness in turn.
What is a workflow analysis composed of?
Picture illustrating Workflow Analysis
A workflow analysis is what? An evaluation of all the supporting operations is a workflow analysis. Plans to get rid of inefficiencies and improve the individual processes may be included. After analysis and optimization, if your workflow continues to run smoothly, you might want to consider automation.
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Answer:
The answer is : C. Investment overstated; retained earnings overstated
Explanation:
Under the equity method of accounting, Fey Corporation should record the correct entry as below:
Dr Equity Investment 16,800
Cr Equity Income 16,800
Dr Cash 5,400
Cr Equity Investment 5,400
As a result, Investment account has been overstated by $5,400 while Dividend Revenue account has been overstated by $5,400. The overstating in Dividend Revenue will subsequently result to the overstating in Retained Earnings account through closing entry.
So, C. Investment overstated; retained earnings overstated is the correct answer.
The company's variable expenses per unit is 1.25
<h3>What is breakeven?</h3>
Breakeven is a point at which neither profit nor loss is made. It is used to determine the number of units or dollars of revenue needed to cover total costs.
Number of units to sell = 100,000
Price per unit = 2
Fixed expense = 75000
At break even point :
Revenue = total expenses
Total expenses
= fixed cost + variable cost
Let variable cost = x
Revenue
= units to sell * price per unit
Revenue
= 100,000 * 2
= 200,000
Hence,
Fixed cost + variable cost = Revenue
75000 + x = 200,000
x = 200, 000 - 75000
x = 125,000
Variable cost = 125,000
The variable expense per unit is thus :
Variable expense / number of units
= 125,000 / 100,000
= 1.25 per unit
Hence, the company's variable expenses per unit is 1.25
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The answer should be c͟o͟m͟m͟u͟n͟i͟c͟a͟t͟i͟o͟n͟, but this question seems a bit vague.