Answer:
True
Explanation:
In the variable cost concept, all the variable manufacturing cost should be covered in the markup for product pricing. The Cost-plus approach determines the pricing of the product by adding the cost of the product whether buying or Manufacturing in the required markup.
In a cost-plus approach under variable
Price of the product = Variable costs + Markup
Price of the product = ( Material cost + Labor cost + Variable manufacturing cost + Variable selling and administrative cost ) + ( Total variable cost x Markup rate )
Answer:
Total contribution margin= $1,220,000
Explanation:
Giving the following information:
Purchase price= $1.8
Selling price= $14
Number of untis= 100,000
<u>First, we will determine the unitary contribution margin:</u>
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 14 - 1.8
Unitary contribution margin= $12.2
<u>Now, the total contribution margin:</u>
Total contribution margin= 100,000*12.2
Total contribution margin= $1,220,000
Answer:
b. $3,000.
Explanation:
The computation of the amount of the basis adjustment allocated to the inventory is shown below;
= $5,000 - $2,000
= $3,000
This $3,000 would represent the basis adjustment and the same would be allocated to the inventory
hence, the correct option is b.
And, the rest of the options would be incorrect
Net working capital is defined as current liabilities minus current assets.
This statement is False.
What is meant by net working capital?
Working Capital = Current Assets - Current Liabilities
Current Assets
Current assets are the economic benefits that the company expects to receive within the next 12 months. The company has the right to receive the financial benefit, and calculating working capital.
Current Liabilities
Current liabilities are simply all debts a company owes or will owe within the next twelve months.
To learn more about net working capital, refer to:
brainly.com/question/21852402
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