Answer:
Cost of goods sold = $576,900
Explanation:
The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .
Sales volume in year 2020= (100-10)% × sales figure for 2019
= 90% × 160,250= 144,225
Cost of goods sold per unit = cost of goods sold in 2019/Sales units in 2019
= 641,000/160250=$4
Cost of goods sold = $4× 144,225 = $576,900
Cost of goods sold = $576,900
Answer:
Unitary variable cost= $8.08
Contribution margin= $15.92
Explanation:
Giving the following information:
Direct materials $4.98
Direct labor 2.10
Variable factory overhead 1.00
The variable cost per unit is the sum of direct material, direct labor, and variable overhead.
Unitary variable cost= 4.98 + 2.1 + 1= $8.08
The contribution margin per unit is the difference between the selling price and the unitary variable cost:
Contribution margin= 24 - 8.08= $15.92
B. Finance a car. If they need to use one yearly, then it would be best to finance one and pay it off over time
Answer:
Option (A) is correct.
Explanation:
Money multiplier refers to the reciprocal of required reserve ratio.
The formula for determining money multiplier is as follows:
= 1 ÷ Reserve requirement ratio
If the households are desired to hold more currency in hand then as result the there will be leakage in the form of households holding cash with themselves.
Hence, this will lead to decrease the money multiplier because of higher reserve requirement ratio for the banks.
