Answer:
The answer is stated below:
Explanation:
Taking the highest and second lowest cost and miles driven as:
Cost = Highest - Lowest
Cost = $15,000 - $14,150
Cost = $850
Miles Driven = Highest - Lowest
Miles driven = 8,500 - 8,000
Miles Driven = 500
So,
= Cost / Miles driven
= $850 / 500
= $1.70
Total Cost would be 15,000 and 13,500
So, computing the variable cost as:
Variable cost of highest cost (VC) = Miles driven of $15,000 cost × $1.70
VC = 8,500× $1.70
VC = $14,450
Variable cost of lowest cost (VC) = Miles driven of $13,500 cost × $1.70
VC = 7,500× $1.70
VC = $12,750
Computing fixed cost as:
Fixed cost of highest cost = Total cost - VC
= $15,000 - $14,450
= $550
Fixed cost of lowest cost = Total cost - VC
= $13,500 - $12,750
= $750
Answer:
D. Actually, average revenue is always equal to price, whether demand is downward sloping or no
Explanation:
This is because Average revenue is the amount of revenue that is obtained by selling an addition unit of output. This additional revenue is always = Price as proven by the equation below,
Total Revenue = Price * Quantity
Thus, AR = Total Revenue / Quantity
Input elements of the Total revenue we get,
AR = Price * Quantity / Quantity
AR = Price
Hope that helps.
The entry to record the issuance of a note receivable is debit Notes Receivable and credit Cash.
<h3>
What is Note Receivable ?</h3>
A note receivable is an asset account tied to an underlying promissory note, which details in writing the payment terms for a purchase between a “payee” (typically a company, and sometimes called a creditor) and the “maker” of the note (usually a customer or employee, and sometimes called a debtor).
The journal entry for interest on a note receivable is to debit the interest income account and credit the cash account.
Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement.
Learn more about Note Receivable on:
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Answer:
6,750 dinner cruise tickets
Explanation:
The computation of the break even point in units is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So, the contribution margin per unit is
= $80 - $40
= $40
And, the fixed expenses is $240,000
And, the target operating income is $30,000
So, the target sales in units is
= ($240,000 + $30,000) ÷ ($40)
= 6,750 dinner cruise tickets
Answer:
A. pricing
Explanation:
Pricing entails determining the value to attach to a product. It is the process through which a business decides how much customers will pay for its products. A business must consider the production costs and the desired margins when setting a price.
Price plays a crucial role in the success of a product and the business. A high price has higher profit margins but may put-off some customers. A low price may attract demand but may lead to losses. Sometimes, low prices are associated with a poor quality product.
