Answer:
Gunst should produce 500 Bio-mutant games:
- total contribution margin = $71 x 500 = $35,500
Explanation:
Android Bio-mutant Cyclops
selling price $100 $107 $125
labor $48 $24 $60
direct materials $9 $8 $16
variable overhead $7 $4 $9
contribution margin $36 $71 $40
labor hours 4 2 5
Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.
Gunst should produce 500 Bio-mutant games:
- total revenue = $107 x 500 = $53,500
- total contribution margin = $71 x 500 = $35,500
If it produces 250 Android games its total contribution margin will = $9,000
If it produces 200 Cyclops games its total contribution margin will = $8,000
Answer:
Target costing
Explanation:
Target costing is a demand-based pricing strategy in which the budget is determined based on a target cost that is stablished according to the customer's willingness to pay. The cost of production added to the desired profit margin should not surpass the customer's willingness to pay in order for this method to be applied.
Answer:
<em>Monetary policy</em> consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Answer:
The percentage change in quantity demanded is exactly equal to the percentage change in price. The percentage change in quantity demanded is exactly equal to the percentage change in price.
