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:
A
Explanation:
Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.
Elasticity can be described as elastic—or very responsive—unit elastic, or inelastic—not very responsive.
Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.
An inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.
Unitary elasticity means that a given percentage change in price leads to an equal percentage change in quantity demanded or supplied.
Answer:
A. Actual Sales - Break-even sales
Explanation:
In business studies, Margin of safety (MOS) is the difference between actual/projected/budgeted sales and the level of break even sales. It is calculated by subtracting break even sales from projected or budgeted sales.
It is usually calculated by a company to know the level of percentage by which sales can drop in that company, before they start incurring losses. IT IS A MEASURE OF BUSINESS RISK.
Answer: Factory overhead control
Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.
All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.
