Answer:
Unitary Contribution margin= $0.6
Explanation:
Giving the following information:
LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.
Variable cost= 600,000/2= $300,000
Unitary variable cost= 300,000/750,000= $0.4
Unitary Contribution margin= 1 - 0.4= $0.6
Total contribution margin= $450,000
Answer:
Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.
Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.
Answer:
Research and development
Explanation:
Fixed cost is cost that does not vary with output. It is cost that is incurred regardless of the units of output produced
Discretionary fixed cost is cost that is incurred at the discretion of the management of a company.
A company can decide to undertake research and development or not to. So, it is an example of discretionary fixed cost
Answer:
A. ensure lenders are rapaid.
Answer: a
Explanation:
Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.
Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
Opportunity cost analysis also plays a crucial role in determining a business's capital structure. While both debt and equity require expense to compensate lenders and shareholders for the risk of investment, each also carries an opportunity cost. Funds used to make payments on loans, for example, are not being invested in stocks or bonds, which offer the potential for investment income. The company must decide if the expansion made by the leveraging power of debt will generate greater profits than it could make through investments.
