<span>Usually final customers pay basic list prices. A list price is what the manufacturer suggests the retail price is. This type of price is determined by supply and demand. It is usually the initial asking price. The basic price is the amount receivable by the producer from the purchaser for a good or service that is produced minus the taxes.</span>
Answer:
D. A and C only
Explanation:
According to the law of supply: There is a direct or positive relationship between price of goods & services and quantity supplied in the market. It says that if price of goods increases in the market, then supply of goods also increases, which help the supplier to gain more profit out of high price in the market. It show upward slope of supply curve in the graph, which is positive relation of quantity supplied and price of goods.
During decline, sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its ‘death’.
it is during this phase that new technologies will replace old, and dying technology and start a new product life cycle.
Answer:
Using the high-low method, the estimated variable cost per machine hour for utilities is $1.875/ machine hour
Explanation:
High Low Method is a method used to separate Fixed and Variable Costs Components of a semi-variable cost/overhead.
<em>Step 1 : Establish 2 points - The Highest and The Lowest</em>
High - March 2,640 hrs : $8,100
Low - April 720 hrs : $ 4,500
<em>Step 2 Calculate the variable Cost Component</em>
Variable Costs = Overhead Cost difference /Activity difference
= ($8,100-$4,500)/(2,640hrs-720hrs)
= $3,600/1,920hrs
= $1.875/hr
Answer is $287,000 and $185,200 respectively for the company's gross profit and operating expenses.
Let us see how to solve it. As we can see the formula for Gross Margin is as follows -
Gross Margin= Net Sales − Cost of Goods Sold which is $852,000 − $565,000 = $287,000. So the total Gross Margin is $287,000.
Now the formula for Operating Expenses is as follows-
Operating Expenses= Gross Margin − Net Income; Hence we have to do $287,000 − $101,800 = $185,200. So the total Operating Expenses is $185,200. Hence answer is $287,000 and $185,200 respectively for the company's gross profit and operating expenses.
Learn more about operating expenses here-
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