Answer:
Estimated variable costs per unit=$86.
Option A is correct ($86.00)
Explanation:
Variable cost are those which changes with the activity level. These costs are help in making decision because if we talk about fixed costs, fixed costs do not help in making decisions as they are sunk costs. Management uses variable costs for making the decisions.
Estimated variable costs per unit= Direct material+Direct labor+Variable manufacturing overhead+Variable selling expenses
Estimated variable costs per unit=$38+$23+$21+$4
Estimated variable costs per unit=$86.
Option A is correct ($86.00)
Answer:
$50
Explanation:
Marginal costs refer to the additional expense incurred in the manufacturing of one more unit of a product. It is the incremental cost associated with producing an extra unit of a good.
The formula for calculating marginal cost is,
MC = change in cost/ Change in quantity
in this case:
MC = $1550 - $ 1500
26-25
MC = $50/1
Marginal costs= $50
Answer:
B. "Carefully consider the entry choices over time before making a decision."
Explanation:
Since Mara company specializes in manufacturing sodas, venturing into health drinks is risky and therefore would need a lot of planning, thorough analysis of the target market . Looking into whether there's sufficient demand for it and forecasting future trends with regards to health drinks is also important . Mara should therefore, test venture into this by testing the market and considering entry choices over time before making a decision.
