The right answer for the question that is being asked and shown above is that: "decrease." If the price of butter increases, then the demand for margarine will likely <span>decrease. The answer is correct as far as the price of the butter increases.</span>
Project evaluation from the <u>local</u> viewpoint serves some useful purposes and/but should <u>be </u><u>subordinated</u><u> to</u> the <u>parent's</u> viewpoint.
Project evaluation is the process of measuring the success of a project, program or a portfolio. The project evaluation process has been around as long as projects themselves.
In a project, every aspect of the project such as risks, costs, scope, or return on investment (ROI) is measured in order to determine if it’s proceeding as planned. Thus, it should be subordinated to the parent's viewpoint.
Hence, it requires the evaluator to gather important information to analyze the process and outcome of a certain project.
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Answer:
$1,160,300
Explanation:
Total Manufacturing Costs are all costs related to the production of goods to be sold. This consists of direct costs such as labor and material and other indirect costs such as electricity and rentals.
<u>Calculation of total manufacturing costs :</u>
Cost of goods manufactured 1,030,300
Add Closing Work In Process 130,000
Less Beginning Work In Process 0
Total manufacturing costs $1,160,300
Call back and try to report the problem again.
Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1) ![Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}](https://tex.z-dn.net/?f=Break-even%5C%20in%5C%20rooms%3D%5Cfrac%7BFixed%5C%20cost%7D%7Bcontribution%5C%20margin%5C%20per%5C%20marketing%5C%20plan%7D)
![Break-even\ in\ rooms=\frac{400,000}{1,000}](https://tex.z-dn.net/?f=Break-even%5C%20in%5C%20rooms%3D%5Cfrac%7B400%2C000%7D%7B1%2C000%7D)
Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000
![Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}](https://tex.z-dn.net/?f=Margin%5C%20of%5C%20safety%5C%20ratio%3D%5Cfrac%7BMargin%5C%20of%5C%20safety%7D%7BActual%5C%20sales%7D)
![Margin\ of\ safety\ ratio=\frac{300,000}{1,500,000}](https://tex.z-dn.net/?f=Margin%5C%20of%5C%20safety%5C%20ratio%3D%5Cfrac%7B300%2C000%7D%7B1%2C500%2C000%7D)
= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000
![Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}](https://tex.z-dn.net/?f=Break-even%5C%20in%5C%20rooms%3D%5Cfrac%7BFixed%5C%20cost%7D%7Bcontribution%5C%20margin%5C%20per%5C%20marketing%5C%20plan%7D)
![Break-even\ in\ rooms=\frac{400,000}{2,000}](https://tex.z-dn.net/?f=Break-even%5C%20in%5C%20rooms%3D%5Cfrac%7B400%2C000%7D%7B2%2C000%7D)
Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000
![Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}](https://tex.z-dn.net/?f=Margin%5C%20of%5C%20safety%5C%20ratio%3D%5Cfrac%7BMargin%5C%20of%5C%20safety%7D%7BActual%5C%20sales%7D)
![Margin\ of\ safety\ ratio=\frac{700,000}{1,500,000}](https://tex.z-dn.net/?f=Margin%5C%20of%5C%20safety%5C%20ratio%3D%5Cfrac%7B700%2C000%7D%7B1%2C500%2C000%7D)
= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.