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melamori03 [73]
3 years ago
9

When the activity level declines within the relevant range, what should happen with respect to the fixed cost per unit and varia

ble cost per unit?
A. Neither the fixed nor variable cost per unit change
B. The variable cost per unit increases and the fixed cost per unit doesn't change
C. The fixed cost per unit increases and the variable cost per unit doesn't change
D. Both the fixed and variable cost per unit increase
Business
1 answer:
viktelen [127]3 years ago
8 0

Answer:

The correct answer is option C.

Explanation:

The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.

The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.

The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.

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Ski Park Company purchased a gondola for $440,000 (no residual value) at the beginning of 2015. The gondola was being depreciate
krek1111 [17]

Answer:

D (The effect of a change on any financial statement line items affected for all periods reported.)

Explanation:

Any change in the financial system should include all other 3 explanations. It should also include a cumulative effect of the change but it would not include change to every financial line and every statement.

As they only needs to adjust the cumulative effect.

4 0
3 years ago
Read 2 more answers
I want a solution to the problem of coffee break in the company. Because the employees are getting late in the coffee break all
ELEN [110]

Answer:

The solution to prevent employees getting late at work could be a regressive strategy like warning employees about the duration after which they cannot be at break and telling them that there would be a pay cut from their monthly salary if they exceed the time like $0.1/minute.

In order to increase the productivity of the company, there are many strategies that can be opted at different levels of organization

Like at manufacturing level: 1) installing more efficient Plant and machinery

2) Hiring more skilled labours

and at managerial level: 1) Improved planning 2) hiring competent and trained staff

Explanation:

6 0
3 years ago
ou open a business selling art supplies and lessons. In your first month, you had the following total sales: $4,000 in paint, $2
never [62]
8,400 is your answer all you have to do is add the 4 sales and subtract the discounts and the returns 
8 0
3 years ago
Read 2 more answers
Court Inc. produces two types of products - Gizmos and Gadgets. The following information is available related to each product:
anyanavicka [17]

Answer: 1250

Explanation:

Let's go in stages,

Gizmos are sold for $80 and have a variable cost of $36. Subtracting that would give us $44. This is the Contribution margin of Gizmos.

Gadgets are sold for $50 and have a variable cost of $22. Subtracting that would give us $28. This is the Contribution margin of Gadgets.

The text says that 3/4 of goods sold are Gizmos with the rest being gadgets.

Let's account for that using their contribution margins.

This means that Gizmos contribute 3/4 from their CM which we'll calculate as,

= 3/4 * 44

= 33

Gadgets would be

= 1/4 * 28

= 7

The Weighted Average contribution margin for both goods in their selling proportion is therefore,

= 33 + 7

= $40

If they make $40 as the weighted average CM then to find the amount of units needed to break even with a fixed cost of $50,000 can be calculated by dividing the fixed costs by the Weighted Average CM which would be,

= 50,000/40

= 1250

They would need to sell 1250 total units in order to break even with a product mix of 3/4 Gizmos and 1/4 Gadgets.

Please do react or comment if you need any clarification. Thank you.

3 0
3 years ago
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year
zheka24 [161]

Answer:

The NPV is - $14958.49 . The opportunity should not be pursued as the NPV of the project discounted at the interest rate of 15% comes out to be negative . Thus, Nielson Motors should not proceed with the project.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the NPV or Net Present Value of the project. If the NPV is positive, the project should be accepted.

The formula to calculate the NPV is attached.

NPV = - 1000000 + 250000 / (1 + 0.15)  +  450000 / (1 + 0.15)²  +

650000 / (1 + 0.15)³

NPV =  - $14958.49429

The opportunity should not be pursued as the NPV of the project discounted at the interest rate of 15% comes out to be negative. Thus, Nielson Motors should not proceed with the project.

7 0
4 years ago
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