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docker41 [41]
2 years ago
6

Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product a

t a price of $60 per unit. If Ramort doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the company's contribution margin increase or decrease under variable costing?
Business
1 answer:
netineya [11]2 years ago
7 0

Answer:

It will remain at the same level.

Explanation:

the contribution margin will be the same.

Because under variable cost, we only focus on the variable cost to determinate the unit cost. Which doesn't change at unit level.

contribution margin = sales - variable cost.

<u>If we use absorption cost,</u> the <u>cost would decrease</u>, because the fixed cost are distribute over more units. <u>This will increase the income</u>. However this is not the case.

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Explanation:

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As the main scope of the project, a BCP (business continuity plan) must be developed that allows employees to continue working remotely and safely from the web.

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2 years ago
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Answer:

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3 years ago
You are in desperate need for cash to pay your water bill so you head to the check-cashing store down the street. They offer to
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Answer:

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