Answer:
A. 40,000 units
Explanation:
To break even, the total cost must be equal to the total revenue. The cost elements are the fixed and variable cost. The variable cost is dependent on the level of activities.
Let the number of units required to breakeven be g
cost = sale
30g + 240,000 = 36g
36g - 30g = 240000
6g = 240000
g = 40000
The company must produce and sell 40000 units to break even.
A cost that would be included in product costs under both
absorption costing
and variable costing is: full costing.
A managerial accounting technique known as "
absorption costing
," also known as "full costing," is used to record all expenses related to producing a specific product. This strategy accounts for both direct and indirect costs, including direct materials, direct labor, rent, and insurance
.
Anything that is a direct cost of creating a good is included in absorption costing's cost base. Fixed overhead costs are included
absorption costing
in the product costs under
absorption costing
as well. Wages paid to workers who physically produce a product, raw materials required in production, and all overhead expenditures (such as all utility bills) incurred
absorption costing
during production are a few of the costs related to product manufacturing
.
Learn more about
absorption costing
on:
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Parents could include their kids into interactive activities such as sports or social clubs.
Answer:A
Explanation:
A joint ventures is a business entity created by two or more parties, generally characterized by shared ownership.
Effect of Contribution Margin on the other costs is given below
Explanation:
1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.
2.The Formula for Contribution Margin Is
The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.
Contribution Margin=Sales Revenue - Variable Costs
3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.
4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.
The concept of contribution margin is one of the fundamental keys in break-even analysis.
Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins
