The Garden company sells a product for $50 per unit. Variable costs are $40 per unit. 50 % of the contribution margin per unit, in total, and as a ratio.
Selling price per unit - Variable cost per unit = Contribution margin per unit
50 - 25 = $ 25
Sales - Variable cost = Contribution margin
( 610 * 50 ) - ( 610 * 25 ) = $ 15250
Contribution margin / Sales = Contribution margin ratio
15250 / 30500 = 50%.
Variable costs are directly related to the cost of producing goods and services, whereas fixed costs do not change with the level of production. Variable costs are commonly referred to as COGS, but fixed costs are not usually included in COGS. Fluctuations in sales and production levels can affect variable costs when factors such as sales commissions are included in the unit price of production. On the other hand, fixed costs still have to be paid, even if production slows down significantly.
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Answer:
Safety Stock.
Explanation:
Safety Stock is held to respond to the uncertainties in demand and supply levels because it is an additional amount of a product or material which is generally held in an inventory to mitigate or lessen the risk that a product or material will become out of
stock.
In Business management, the safety stock can be calculated using the following formula;
<em>Safety stock = (Md * Ml) - (Ad * Al) </em>
Where;
Md = maximum daily usage.
Ml = maximum lead time in days.
Ad = average daily usage.
Al = average lead time in days.
Initiative is an important quality because it proves that you want to do your job or task successfully and independently. Lack of initiative shows laziness and/or low confidence in one's skills.
It has to be the product chain
