Answer:
$15 per backpack
Explanation:
The average variable cost per of producing a backpack by using the high low method is shown below:
Variable cost per backpack = (High total cost - low total cost) ÷ (High backpack produced - low backpack produced )
= ($110,000- $87,500) ÷ (4,000 backpack produced - 2,500 backpack produced )
= $22,500 ÷ 1,500 backpack produced
= $15 per backpack
Answer:
. Obtaining third-party written quality and quantity reports prior to payment for the raw materials
Explanation:
Purchases of raw materials can be regarded as purchases of all commodities that is required as inputs in the process of production as well as related to the supply of factors of production. It should be noted that Effective controls relevant to purchasing of raw materials should usually include; ✓Determining the need for the raw materials prior to preparing the purchase order.
✓Systematic reporting of product changes that will affect raw materials. Obtaining financial approval prior to making a commitment.
The answer is A) Regulations keep prices fair and prevent businesses from establishing monopolies.