1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's product
mariarad [96]

Answer:

1.- For sofa it can pay at most 60 dollars per hours

2.- 17.5 per hours

3.- It should. It will create additional gains.

Explanation:

-                                   Recliner         Sofa Love Seat

Sales                                1,400         1,800 1,500

variable                                  800         1,200 1,000

Contribution                          600            600   500

Labor Hours                               8               10       8

Contribution \: per \: hour    75              60   62.5

1.- Contribution per hour 60 dollars for SOFA

it can pay up to this amount.

2.-

contribution per hour - labor cost per hour = net

62.5 - 45 = 17.5 Contribution Margin per hour

3.-

It should hire it. t is generating additional profit.

6 0
2 years ago
Why might a company choose an open office layout?
anyanavicka [17]

A company might want to go for an open office layout because they want to foster creativity and collaboration

See the explanation bellow

<h3>The reason companies choose an open office layout</h3>

Although this type of layout has its own disadvantages one especailly is dealing with a noisy work floor, however, its has proven to be more advantageous in that it promotes collaboration and good work culture among staffs and co-workers.

In recent times, the agile method of product delivery suggests the open work floor as against the cubicle type of office space because it works best in a fast pace working environment.

Learn more about open office layout here:

brainly.com/question/2619283

#SPJ1

5 0
1 year ago
What is income demand curve?<br>​
kobusy [5.1K]
Income demand curve ? Well I know it probably has something to do with money
8 0
3 years ago
The roots of today's anthropology emerged from very early accounts of travelers in previous centuries. what about these accounts
NISA [10]
Early accounts of ethnic groups and their cultures and habits came from scientific travelers like George M. Dawson who became director of the Geological Survey of Canada. In his travels in Canada to explore its mineral potential, he encountered many native groups who he described and also wrote of their languages so this is an example of how early travelers laid the foundation for the studies of later anthropologists. 
5 0
2 years ago
Pure monopoly refers to Multiple Choice any market in which the demand curve for the firm is downsloping. a standardized product
skelet666 [1.2K]

Answer:

a single firm producing a product for which there are no close substitutes.

Explanation:

A pure monopoly is a single supplier having a market or industry i.e. defined. The firm should be considered as an industry also in this there is no competitor or any subsitution existed. It can be arise at the time when the market share of the one firm is more than 90%

So as per the given situation, the above represent the answer

5 0
2 years ago
Other questions:
  • Discuss business rules. How do you translate business rules into data-model and database? Provide few examples.
    11·1 answer
  • You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error. Specifical
    13·1 answer
  • The Lancaster State Bank is thinking about purchasing a corporate bond that pays a coupon of 8.5%. The bank has a marginal tax r
    7·2 answers
  • If product costs are misclassified as selling costs, the average cost per unit will be understated.a. Trueb. False
    6·1 answer
  • Alma is in the business of dairy farming. During the year, one of her barns was completely destroyed by fire. The adjusted basis
    5·1 answer
  • I dont get it<br> can you help ye s didniit os good to dxuiowesxvuedhhgv0x difc id dv h 0oidv
    6·2 answers
  • When a liquidity trap situationâ exists, we knowâ that:_____.a. fiscal policy will have no effect on the demand for goods.b. an
    10·1 answer
  • Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the comp
    12·1 answer
  • When making airline reservations for a traveller, the travel agent does not need to know?​
    5·1 answer
  • The labor supply curve shifts when Group of answer choices employers need to hire more people. employers develop new technology.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!