The contribution margin per unit is 4809.52.
<h3>What is the contribution margin?</h3>
Contribution margin is the level of output at which revenue would equal zero.
Contribution margin = fixed cost / (price - variable cost)
909,000 / (420 - 231)
909,000 / 189 = 4809.52
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Answer:
whether or not to purchase a new machine for the production line
Explanation:
Capital budgeting decision is the process by which a company sets aside money for the purchase of capital assets such as new machinery, new plants, research and development, and new product.
Capital budgeting is considered to be both a financial decision and an investment decision. Apart from cost incurred by making a purchase, the company considers the future cash flows the capital asset will generate.
Purchasing a new machine for the production line is a capital budgeting decision
Answer:
Franklin Investments: No Effect; O'Hare Consulting: Decrease
Explanation:
Franklin Investments will record the dividends received as dividends revenue. On the other hand, O'Hare Consulting is using the equity method, therefore, any dividends received will actually decrease the investment account. Dividends received reduce the investment account when using the equity method, while the declaration of net profits increases the investment account.
A fixed cost is an ammount that is set for something a variable cost is a price that can change hope this helps