The correct answer is A and C
Answer:
Contribution Margin is 51.875%
Explanation:
Contribution Margin = Contribution/Selling Price × 100
<u>Contribution</u>
Contribution = Selling Price/ unit - Variable Costs/ Unit
Selling Price $80.00
<em>Less Variable Costs</em>
Raw Materials ($25.00)
Direct Labour (45mins/60mins×$18) ($13.50)
Contribution ($41.50)
<u>Contribution Margin</u>
$41.50/$80.00×100=51.875%
The firm that would suffer the greatest decline in profits if sales volume declines by 15% is Mason Company.
The cost of a company is made up of fixed cost and variable cost. Fixed cost is the cost that does not vary with output of the company. It remains fixed no matter the level of output. An example of fixed cost is rent. Variable cost is the cost that varies with output. If output increases, variable cost increases and if output falls, output decreases.
If sales volume decreases, the output of Mason Company would decline more compared with the output of Kelley company because it has a higher fixed cost. So, we when sales reduces, its cost would would not reduce as many as the cost of Kelley company.
To learn more, please check: brainly.com/question/13059508
Answer:
A. downward sloping and above the marginal revenue curve.
Explanation:
A monopoly is when there's only one firm operating in an industry. A monopoly usually sets the market price for goods and services. A monopoly faces a downward sloping demand curve because as price increases, the quantity demanded falls.
I hope my answer helps you
