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3 years ago

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if your yearly pension was $46,875.00, what is your monthly pension? choose the best answer from the options below: a $3706.25 b

$3,906.25 c $3,806.25 d $3506.00

1 answer:

emmasim [6.3K]3 years ago

5 0

The correct answer is B

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3 years ago

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3 years ago

Companies A and B are in the same industry and are identical except for cost structure. At a volume of 50,000 units, the compani

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B. Company A's cost structure has higher fixed costs than B's.

Explanation:

Let's see the formula for income:

50,000 units x sales price - variable cost x 50,000 - fixed = net income

50,000 (sales - variable) - fixed = net income

At 50,000 both have equal net income.

Also we are given the fact that their sales is the same.

"identical except for cost structure"

So:

$50,000 (S-V_a)-Fixed_a = 50,000 (S-V_b)-Fixed_b$

We work it and remove sales from the equation:

$50,000S-50,000V_a-Fixed_a = 50,000S-50,000V_b-Fixed_b$

$-50,000Variable_a-Fixed_a = -50,000Variable_b-Fixed_b$

At 60,000 units, Company A has a higer income, so the increase of variable cost in company A is lower than company B

The cost of 10,000 more units is all variable cost, if Company A has more income, then their variable are lower.

If variable cost for 10,000 is lower, same applies for the variable cost for 50,000 so we have:

10,000Va < 10,000 Vb

50,000Va < 50,000Vb

So to have equal income at 50,000 units.

Fixed of A > Fixed of B

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4 years ago