Answer:
The given statement is false.
Explanation:
First we have to compute the total cost which is attached to a product which is shown below:
= Direct material cost + Direct labor cost + variable overhead cost
= $2 + $4 + $1.5
= $7.5 per unit.
Since the total cost comes $7.5 per unit and the special order sold at $10 per unit which shows a difference of $2.5 per unit. By taking a difference of $2.5 per unit, the company can earn more profits than earlier.
And, the selling price for special order is high than the total cost which increase the profitability of a company.
The other cost is irrelevant as the calculation part is not depended on these cost like fixed cost, production capacity, etc.
Thus, the given statement is false.
A company is usually unable to take advantage of economies of scale during the introduction <span>stage of the product lifecycle.</span>
Answer:
5 units
Explanation:
Breakeven point is the point or number of units sold that makes the cost equal with the revenue generated. In other words, it is the point in which the profit or loss made by an entity is 0.
Given;
Variable cost per unit = $20
Selling price per unit = $50
Fixed cost = cost of rent = $150
Let the number of units to be sold be c
Total revenue = 50c
total cost = 20c + 150
To break even, total revenue = total cost
20c + 150 = 50c
50c - 20c = 150
30c = 150
c = 5
Ray must sell 5 units to break even.
Sorry, I’m not sure so I don’t want to mislead you
Answer:
Corporate social responsibility
Explanation:
Corporate social responsibility (CSR) is an approach that a business uses to demonstrate its concern for the surroundings. Through CSR, a company exhibits its commitments to the public or the environment. By practicing CSR, companies become corporate citizens.
CSR is gaining popularity. Businesses are adopting sustainable development agenda into their business models. Engaging in conservation matters makes Clendtine Fashions a friend to the environment.