(d.) ECONOMIES OF SCALE
Economies of scale is achieved when the average goods and services decrease whereas the volume of the goods and services increases.
Diseconomies of scale is achieved when the average unit cost of goods and services increases with the increase in the volume of goods and services.
Answer:
<em>= $1,513,325.</em>
Explanation:
Book value as on date of sale = Cost-Accumulated depreciation
= 7,800,000*(1-0.2-0.32-0.192-0.1152)
= $1,347,840
Therefore gain on sale = 1,560,000 - 1,347,840
= $212,160
So, after-tax salvage value = Sale proceeds - (Tax rate * Gain on sale)
=1,560,000 - (212,160 * 0.22)
<em>=$1,513,325(Approx).</em>
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Answer:
Declining unit manufacturing costs while prices can remain high.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Generally, the growth stage is the stage where the product gains acceptance from the consumer and there is a significant increase in demand and sales.
Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to declining unit manufacturing costs while prices can remain high because the product has been accepted in the market and its unit cost of production is lesser i.e they are manufactured in bulk.
Answer:
Overhead rate= 1.2
Explanation:
Giving the following information:
The Work in Process inventory account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period.
Direct material= $500, & $300
Direct labor= $400 & $600
Manufacturing overhead =?
Work in process= direct material + direct labor + manufacturing overhead
3000= 800 + 1000 + MOH
3000-800-1000= MOH
1200= MOH
Overhead rate= moh/direct labor
Overhead rate= 1200/1000= 1.2
