<span>Distinguish how companies whose profits reflect growth in your industry are able to structure their business to cope with changes in customer needs. ... Assess your strategic objectives and your business activities to ensure that they align with achievement of your key success factors.</span>
        
             
        
        
        
When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of... rational decision making. You just studied 8 terms!
        
             
        
        
        
Answer:
Part a
Contribution Margin = 29.95% (2 d.p)
Part b
                              Billing Company
                  CVP Income for as at September 2017
                                                       Total                      Per Unit
                                                          $                               $
Sales                                          295704                       444
Less Variable Costs                  (138084)                      (311)
Contribution                               157620                        133
Fixed Costs                                 (59850)                     89.86
Net Income                                  97770                       43.14
Part c
Billing`s break even point is 450 units
Part d
                                     Billing Company
      CVP Income for as at September 2017 - Break Even Point
                                                       Total                      Per Unit
                                                          $                               $
Sales                                           199800                       444
Less Variable Costs                  (139950)                      (311)
Contribution                                59850                        133
Fixed Costs                                 (59850)                      133
Net Income                                       0                              0
Explanation:
Part a
Contribution Margin = Contribution/Sales × 100
Therefore contribution margin is  ($444-$311)/$444 * 100 = 29.95% (2 d.p)
Part b
Sales - Variable Cost = Contribution
Net Income  =   Contribution - Total Fixed Costs                             
Part c
Break Even Point is when Billings neither makers a profit or loss.
Break Even Point ( Units) = Total Fixed Cost/Contribution per unit
Therefore Break Even Point (Units) = $59850/$133 = 450 units
Part d
The total and unit CVP should neither reflect a profit or loss at a capacity of 450 units as this is the break even point. In this case profit = nill
 
        
             
        
        
        
Answer:
A. $68,200
Explanation:
Retail Cost
Beginning inventory $60,000
$120,000
Plus: Net purchases. $312,000
$480,000
Goods available for sale $372,000
$600,000
Cost to retail percentage = $372,000 ÷ $600,000 = 62%
Less : Net sales 
($490,000)
Estimated ending inventory at retail
$110,000
Estimated ending inventory at cost
62% × $110,000 = $68,200