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3 years ago

3. What is meant by economy of scale? Why would costs be im pacted by the quantity of garment that is produced?

Business

1 answer:

Anit [1.1K]3 years ago

6 0

Answer:

Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.

Explanation:

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CC’s is analyzing a proposed project with anticipated sales of 3,620 units, give or take 5 percent at a sales price of $24, plus

eimsori [14]

Answer:

The total variable cost will be $ 16 * 3620= $ 57920

Explanation:

Analyzing Proposed Project

Given 1 2 3

Variable Increase ---- 10% 9.125% 9.125%

Fixed Decreased 6.97%

Sales price per unit $24 $24 $24 $24

Variable price per unit $ 14.6 $16.06 $ 16 $ 16

Fixed Costs $ 12900 12900 $ 12900 $ 12000

Sales Volume 3620 3620 3620 3620

We have taken the sale prices constant and changed the variable costs and fixed costs.

Sensitivity Analysis Report

Given 1 2 3

Sales 86880 86880 86880 86880

Variable Costs 52852 58137.2 57920 57920

Contribution Margin 34028 28742.8 28960 28960

Fixed Costs 12900 12900 12900 12000

Operating Profit 21128 15482.8 16060 16960

Dollar Change in

Variable Expenses 5645.2 5068 5068

The total variable cost will be $ 16 * 3620= $ 57920

5 0

3 years ago

Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. On April 4, a $2,000 account

AleksandrR [38]

Answer:

The correct answer is debit to Bad Debt Expense.

Explanation:

Taking into account the nature of both accounts, the registration of an account receivable is considered an asset taking into account that it is a callable value for the sale of products or services on credit, for which reason it is recorded in the debit to increase the company rights. In the exposed case, where the debt is considered uncollectible after exhausting many resources, the record is to recognize an expense (debit nature), against a credit to the account receivable with the objective of recognizing in the accounting the loss in the expense and the cancellation of the right in the asset.

4 0

3 years ago

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's

kolezko [41]

Answer:

Effect on income= $68,580 increase

Explanation:

Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.

First, we need to calculate the unitary cost:

Unitary cost= 46.1 + 8.8 + 1.8 + 1.3

Unitary cost= $58

Now, the effect on the income of accepting the offer:

Effect on income= 2,700*(83.4 - 58)

Effect on income= $68,580 increase

8 0

3 years ago

You are a newly hired manager, and you attend your first meeting. you soon realize that the topic of discussion is the identifi

tatyana61 [14]

from your college bcis class, you recall that they would be in the: requirements analysis phase of the sdlc process.
During the requirements analysis phase of the SDLC process, we will gather all the system requirement, users' requirement, and the operational requirement of the business process.

4 0

3 years ago

Annie's team has just finished a major project and the team has, after a long time, got some free time on hand. However, for the

Natasha_Volkova [10]

Answer:

Explanation:

B is giving a bit of a impersonal approach, and comes across as just pushing company rules, especially by attaching a company policy. Her response should be more precise with options. Annie does not provide that in response B.

5 0

3 years ago