Answer:
D. Direct materials is a variable cost and rent expense is a fixed cost.
Explanation:
- As clearly seen from the data the direct material cost is varying but the rent cost is fixed cost.
Answer:
Competition act.
Explanation:
When same person on the board of two or more than two competing firms then such instance is referred to as interlocking directorate. This will significantly have an impact on the market and the competition.
<span>332.7 million gallons.
First calculate the percentage increase in price of gasoline.
0.40 / 2.80 = 0.142857 = 14.2857%
Now divide by the 10% to get the number of multiples of 10% the price increased by
14.2857% / 10% = 1.42857
Now multiply that by the percent decrease in demand
1.42857 * 2.30% = 3.29%
So it looks like there will be a 3.29% decrease in demand due to the higher price. So calculate the expected amount of gasoline demand.
344 * (100% - 3.29%) = 344 * (96.71%) = 344 * 0.9671 = 332.7
So the expected demand after a price increase of 40 cents per gallon is 332.7 million gallons.</span>
Answer: $75000
Explanation:
In order to solve the question, firstly we need to calculate the contribution margin ratio which will be:
= ($10 - $6) / $10
= 40%
Then, the break even sales will then be:
= Fixed cost / Contribution margin ratio
= $30000 / 40%
= $75000
Therefore, the break-even point in sales dollars is $75000