Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
REAL GDP
Explanation:
GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.
This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.
Answer and Explanation:
The computation of the price that should be sell is shown below:
As we know that
Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)
a. The price is
= $3 × 1.05 ÷ (15% - 5%)
= $31.50
b. Now the price is
= $3 × 1.05 ÷ (12% - 5%)
= $45
Hence, the above represent the answer in both the cases.
To break even, a business must sell enough units to determine the point to cover all its costs cover its fixed costs cover variable costs earn a profit.
If your fixed expenses are ten thousand dollars and also you sell a product for hundred dollars that has an according-to- sell enough unit variable fee of forty-five dollars, you will perform this calculation of ten thousand divided by way of a hundred minus forty-five.
The break-even point is 181.81 products, which you can round up to 182 products you ought to sell to interrupt even. The destroy-even point is the factor at which total fee and overall sales are the same, which means there is no loss or advantage in your small commercial enterprise. fixed costs-Contribution margin in keeping with unit. Your ruin-even point in units will tell you exactly how many devices you need to sell to show earnings. if you're able to sell greater gadgets past this point, you may earn a profit.
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