<span>meowner’s policy, installing smoke detectors helps to avoid risk. create risk. reduce risk. share risk.
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Answer:
If products with a higher contribution margin increase their weight in a company's sales mix, that will lead to a higher total contribution margin, and a higher operating profit.
Explanation:
E.g. a company sells 2 products, and it sells them in equal proportion:
- 100 units of product A, which has a contribution margin per unit of $5
- 100 units of product B, which has a contribution margin per unit of $7
Total contribution margin = $500 + $700 = $1,200
if the sales mix changes, and the sales of product B represent 60% of total sales:
- 80 units of product A, which has a contribution margin per unit of $5
- 120 units of product B, which has a contribution margin per unit of $7
Total contribution margin = $400 + $840 = $1,240
Answer:
Mark- up = 23.3%
Explanation:
<em>Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit</em>
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
Fixed production overhead = $300,000/150,000 units=2
Total cost = 150 + 20 + 2= $172
Total cost per unit using absorption costing = $172
Desired ROI = 20%. × 2,000,000= $400,000
Profit per unit = 400,000/10,000 units =40
Mark- up = Profit/Cost = 40/172× 100 = 23.3%
Mark- up = 23.3%
Matthew is experience an effect known as post-purchase dissonance or Buyer's remorse. it is comes in the sense of regret after having bought something. It normally comes after the purchase of an expensive item like real estate. It usually stems from resources invested, involvement of purchaser and whether the purchaser is fighting with the decisions as to whether the purchase is compatible with the his/her goals. For Matthews case it has been cost by the low cost of the product and also he could be feeling that he purchased the item in an ethically unsound way.