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3 years ago

LO 2.2Explain the differences among fixed costs, variable costs, and mixed costs.

Business

1 answer:

hjlf3 years ago

7 0

Answer:

Explanation:

There are primarily two types of costs, i.e. variable costs and fixed costs. The variable cost is the cost that varies when the level of production changes, whereas the fixed cost is the cost that remains constant, whether the level of production changes or not.

Therefore, indirect material indirect labor, and factory supplies are included in the variable costs, and the fixed costs include supervision taxes and depreciation expenses.

The mixed cost is a mix combination of both the variable cost and the fixed cost which includes some components of fixed cost and some components of variable cost. It is also known as semi-variable cost

Example - transportation cost, tel communication cost, etc

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Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%

Tasya [4]

The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?

Answer:

Fixed costs are $480000

Explanation:

The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000

2400000 = Fixed cost / 0.2

2400000 * 0.2 = Fixed cost

Fixed costs = $480000

6 0

3 years ago

Ahngram Corp. has 1,000 carton of oranges that cost $10 per carton in direct costs and $16.50 per carton in indirect costs and s

kow [346]

Answer:

The correct answer is D that is $33,500

Explanation:

The total cost for the oranges = Direct cost + Indirect cost

= (Number of carton × Rate per carton) + (Number of carton × Rate per carton)

= (1,000 × $10) + (1,000 × $16.50)

= $10,000 + $16,500

= $26,500

Total Revenue = Number of carton × Selling price

= 1,000 × $30

= $30,000

Profit from oranges = Revenue - Cost

= $30,000 - $26,500

= $3,500

Profit or loss from from processing into the orange juice is computed:

Total Cost = Number of carton × Price

= 1,000 × $12.50

= $12,500

Revenue = Number of carton × Selling Price

=1,000 × $46

= $46,000

Profit or loss = Revenue - Cost

= $46,000 - $12,500

= $33,500

Therefore, Corporation has a profit of 33,500.

4 0

2 years ago

Question 3

Pachacha [2.7K]

Answer:

that you should pay your own savings and investment accounts first. You are "paying" your future self by saving for your long-term needs and expenses.

Explanation:

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3 years ago

For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume that prices are rising. (a) se

pishuonlain [190]

Answer: D. select a method results in lower taxes. (e) select a method results in lower net cash provided by operating activities

Explanation: Statement for LIFO and FIFO are rising definitely the organisation would want to reduce its taxes to significant amount and its operating activities would be checked during this period because it boils down to the price at which the product is being manufactured and sold out to the different customers that buys the company good. Last in first out and first in First out. This rule is used in warehousing and inventory management.

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3 years ago

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, No

beks73 [17]

Answer:

a) Priscilla Wescott's

Cash budget

Months

Sept. Oct. Nov. Dec.

beginning balance 8,220 3,220 3,330 3,340

football tickets -110

other entertainment -290 -290 -290 -290

semester tuition -4,400

rent -400 -400 -400 -400

food -220 -220 -220 -220

apartment deposit -600 600

part time jobs earnings 1,020 1,020 1,020 1,020

ending balance 3,220 3,330 3,340 4,150

b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.

c) The spring semester tuition costs $4,400 and she will only have $4,150, that means she will be $250 short.

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3 years ago