Answer:
C. In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.
Explanation:
In Accounting, cost behavior is an indication of how costs in a firm reacts to change in activity levels. There are basically three types of cost behavior; fixed costs, variable costs and semi-variable costs.
The relationship between cost behavior and profits are;
- A pure fixed cost structure offers more security if volume expectations are not achieved.
- In a pure variable cost structure, when revenue increases by $1, so do profits.
- A pure variable cost structure offers higher potential rewards.
Answer and Explanation:
The journal entry is shown below:
Accounts payable $1,500
To Merchandise Inventory $1,500
(being purchase returns is recorded)
here account payable is debited as it decreased the liabilities and credited the merchandise inventory as it decreased the assets
Answer:
Profit= $1600
The profit which firm is generating is $1600.
Explanation:
Formula:
Profit= Total Selling Cost- Total Actual Cost
Profit= (Price at which unit is sold*Number of units) - (Average cost*Number of units)
In our case:
Number of units=800 units
Price= $6
Average cost= $4
Profit= ($6*800) - ($4*800)
Profit= ($4800) - ($3200)
Profit= $1600
The profit which firm is generating is $1600.
The stock market is where shares of public limited companies are traded. An example is the New York stock exchange.
A Joint Venture is the type of network that the private oil company and the government should set-up to manage the project. In other business terms, joint venture between a private and a public entity is also known as a Public-Private Partnership. It holds both parties responsible for the tasks to be delivered at hand. There are contracts and agreements between the two parties to be made in order for the project to work and become successful.
