Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
If prices are cut by $0.2 then the operating income will increase by $91,200.
Explanation:
Current Gross Profit is :
Revenue [240,000 * $6] = $1,440,000
Cost of Sales = $1,416,000
Gross Profit = $24,000
If selling price is reduced to $5.80
Revenue $5.80 * [ 240,000 * 1.10 % ] = $1,531,200
Cost of Sales $1,416,000
Gross Profit = $115,200
Marketers are viewing information not only as an input for making better decisions but also as a(n) ______________.
Important strategic asset and marketing tool
<span>End users are often the "boots on the ground" that have the closes interactions with incidents. These subject matter experts should be encourages to report suspicious occurrences because they are mostly likely to:
a) identify an occurrence as suspicious
b) be in a position to observe the occurrence.</span>
Answer:
$36 billion
Explanation:
The formula to compute the GDP under the income approach is shown below:
GDP = Interest payments + profits + rent + wages
$65 billion = $15 billion + $7 billion + $7 billion + wages
$65 billion = $29 billion + wages
So, the wages equal to
= $65 billion - $29 billion
= $36 billion
The net exports or exports less imports values are ignored under the income approach as this are used under the expenditure approach
