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Arte-miy333 [17]
3 years ago
8

"Variable costs are expenses that" ________. A. remain constant on a per-unit basis but change in total based on activity level

B. decrease on a per-unit basis as activity level increases C. remain constant in total regardless of activity level within a relevant range D. remain constant on a per-unit basis and remain constant in total regardless of activity level
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

A. remain constant on a per-unit basis but change in total based on activity level

Explanation:

In the short run, variable costs only vary according to the total output of the company. E.g. a company's variable cost of manufacturing product X is $10 per unit. If it produces 10,000 units, total variable costs will = $10 x 10,000 = $100,000.

In the long run variable costs will probably vary because production processes will also vary or the cost of inputs change.

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A resort hotel is planning to install a computerized inventory system to manage complementary guest items such as soap and shamp
jeka57 [31]

Answer:

a) safety stock = z-score x √lead time x standard deviation of demand

z-score for 99.9% = 3.29053

√lead time = √7 = 2.6458

standard deviation of demand = 3

safety stock = 3.29053 x 2.6458 x 3 = 26.12 ≈ 26 soaps

reorder point = lead time demand + safety stock = (7 x 16) + 26 = 138 soaps

EOQ = √[(2 x S x D) / H]

S = order cost = $10

D = annual demand = 16 x 365 = 5,840

H = $0.05

EOQ = √[(2 x $10 x 5,840) / $0.05] = 1,528.40 ≈ 1,528 soaps

b) total order costs per year = (5,840 / 1,528) x $10 = $38.22

total holding costs = (1,528 / 2) x $0.05 = $38.20

total annual ordering and holding costs = $76.42

4 0
3 years ago
Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quant
kondaur [170]

Answer:

the answer is B

Explanation:

because there are less things in the number and if this dos not help you I am sorry I am not good at math

3 0
3 years ago
Which of the following best describes the term customer contact points? Group of answer choices
kumpel [21]

Answer:

d.a customer interacting with a franchise employee

Explanation:

Customer contact points are avenues through which a company interacts with its customers directly. The modes of interactions include phone calls, written communication, online interactions, or one-on-one customer support.

Many businesses recognize the importance of customer contact points. They invest heavily to ensure that the customer gets a wonderful experience at the contact points.

6 0
3 years ago
Sandra is purchasing a home with a first mortgage loan for $548,250, which is the conforming loan limit for the area where she l
Lostsunrise [7]

Question Completion with Options:

2.5 percentage points

1.5 percentage points

3.5 percentage points

6.5 percentage points

Answer:

Sandra's creditor must determine if the APR for the loan exceeds the average prime offer rate by:

1.5 percentage points

Explanation:

The first mortgage loan principal should not exceed the conforming loan limit for the area where Sandra lives at the time that she secures the loan approval. It behooves on Sandra’s creditor to determine if the annual percentage rate (APR) for the mortgage loan exceeds the average prime offer rate (or the sample rate that is a representative of the APRs charged by creditors for mortgage loans that have low-risk pricing characteristics) by 1.5 percentage points.

7 0
3 years ago
Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.
Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

8 0
2 years ago
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