Answer: Option A
Explanation: In simple words, Variable cost is that cost of the business that changes with level of production. Hourly wage rate of workers, electricity bill of factory are some of many examples of variable cost.
The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.
Hence, from the above we can conclude that the right option is A.
Answer:
$414,000
Explanation:
Calculation of balance of cash account:
Issuance of capital stock to the $648,000
owners of the corporation
Cash down payment for purchase ($170,000)
a piece of lane
Cash payment on the note payable <u>($64,000)</u>
from the purchase of land
Balance in the Cash account $414,000
at the end of May
Answer:
withdraw = 28532.45
so correct option is a. $28,532
Explanation:
given data
earned = $275,000 bonus
interest rate = 8.25% per year
time = 20 year
to find out
How much could you withdraw at the end of each of the next 20 years
solution
first we find here Cumulative discount factor that is express as
Cumulative discount factor = 
.............1
put here value r is rate and t is time
Cumulative discount factor = 
Cumulative discount factor = 9.638148
so here
withdraw = Present amount ÷ cumulative discount factor .......2
put here value we get
withdraw = 
withdraw = 28532.45
so correct option is a. $28,532
5. Penetration Pricing
Firms typically do this when offering a new product to take away some of the market shares of competitors by lowering the price of their products.
