Answer:
The total monthly fixed cost and the variable cost per hour is $1,540 and $23
The average contribution margin per hour is $27
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable cost per hour = (High Operating cost - low operating cost) ÷ (High service hours - low service hours)
= ($11,200 - $4,300) ÷ (420 hours - 120 hours)
= $6,900 ÷ 300 hours
= $23
Now the fixed cost equal to
= High operating cost - (High service hours × Variable cost per hour)
= $11,200 - (420 hours × $23)
= $11,200 - $9,660
= $1,540
For computing the contribution margin per hour, first we have to compute the revenue per hour which is shown below:
= Revenue ÷ service hours
= $6,000 ÷ 120 hours
= $50
We know that,
The contribution per hour = Revenue per hour - variable cost per hour
= $50 - $23
= $27
Answer:
A) Positive, because higher prices yield larger quantities supplied.
Explanation:
The correct answer to the question is A) Positive, because higher prices yield larger quantities supplied. The price elasticity of supply determines the change in price as a response to the change in supply of the good or service supplied. This is usually calculated in a figure that determines that if price increases what will be the impact on its supply, which usually is a positive figure.
Answer:
c. $146,400 and 206,560.
Explanation:
Monthly Purchases are as follows;
April =$156,800
May= $195,200
June= $217,600
Since Admin expenses are paid every month,
April =$28,800
May = $28,800
June =$28,800
75% of April purchases will be paid in April . Use these to calculate the payments;
Pmts
April = 75%* $156,800 = $117,600
add Admin expenses to find total cash payments;
APRIL = $117,600+ $28,800 = $146,400
In May,20% of April purchases will be paid , 75% of May purchases will also be paid plus admin expenses. Use these to calculate the payments;
May= (20%* $156,800) + (75% * $195,200) + $28,800
MAY = 31360 +146400 +28800 = $206,560
Answer:
C) earning an economic profit.
Explanation:
Since the market is in long run equilibrium, the demand = the supply of haircuts, and an increase in the quantity demanded will increase the equilibrium price in the short run, generating economic profits at least until more suppliers enter the market and long run equilibrium is established again. Economic profit doesn't exist when the market is at long run equilibrium.
*Economic profit = accounting profit - implicit costs. So economic profit being $0 in the long run doesn't mean the businesses are not making an accounting profit.
Answer:
C.
Explanation:
Based on the information provided by the Uniform Commercial Code (UCC) can be said that this means that fit for the ordinary purpose for which such goods are used. Meaning that the good that is being sold must meet the expectations that the ordinary buyer is expecting to receive from the product based on it's description and advertisements.
