Papillon Co. has determined the following per unit amounts: Direct materials $30 Fixed selling and administrative $60 Direct lab
or 36 Variable overhead 24 Desired ROI 33 Variable selling and administrative 15 Fixed overhead 45 The cost base using the variable-cost approach is A. $90. B. $135. C. $195. D. $105.
Correct answer is $123 using the variable-cost approach.
Explanation:
Variable-cost approach
Variable costing is a methodology that only assigns variable costs to inventory. This approach means that all overhead costs are charged to expense in the period incurred, while direct materials and variable overhead costs are assigned to inventory
Target selling price = Variable production cost per unit+Desired ROI per unit
A price ceiling is an upper limit on the price that could be charged for a product. It is generally imposed to protect consumers and to make necessary items affordable for the people.
A price ceiling below the equilibrium price is called a binding price ceiling. It creates a shortage in the market as at lower prices the consumers will demand more of a commodity but the suppliers will supply less.
Because of the law of demand and law of supply, the quantity demanded will be greater than the quantity supplied at a price that is fixed below the equilibrium price.
Gross domestic product is the market of all the goods and services produced and rendered during a specific period of time. GDP can be expressed in real value or nominal value .Real GDP does not include the inflation effect but the nominal GDP included the inflation effect on the value of product and services.
According to given data in the question
Real GDP per capita in 1950 = $6,000
Real GDP per capita in 2009 = $48,000
Increase in time = Real GDP per capita in 2009 / Real GDP per capita in 1950 = $48,000 / $6,000 = 8 times
Partnership by estoppel means that a person who is not technically a partner can be held liable as a general partner would be for any debts and damages owed to a third party.
<span>North america is about 80% urbanized. this mean that about 75% of north american people live in cities. also the population is very less compared to the land area. May be people would prefer to live in urban areas rather living in rural or forest areas. this condition is helpful in preserving forest and natural resources. the only problem is the quality of living in urban areas will be poor compared to rural areas.</span>
