Answer:
Option (c) is correct.
Explanation:
Given that,
Highest level of activity = 3,700
Total cost at highest level of activity = $82,400
Lowest level of activity = 1,200
Total cost at lowest level of activity = $65,000
Here, we are using high-low method of cost estimation,
Variable cost per unit:
= (Total cost at highest level of activity - Total cost at lowest level of activity) ÷ (Highest level of activity - Lowest level of activity)
= ($82,400 - $65,000) ÷ (3,700 - 1,200)
= $17,400 ÷ 2,500
= $6.96
Fixed Costs:
= Total cost at highest level of activity - (Variable cost per unit × Highest level of activity)
= $82,400 - ($6.96 × 3,700)
= $82,400 - $25,752
= $56,648
Answer:
TIE 6.26238
Explanation:
Times Interest Earned:
EBIT = earnings before Interest and Taxes
The growth-share matrix defines four types of sbus: Cash cows are low-growth, high-share businesses or products.
Each of the four quadrants represents a particular combination of relative market share, and growth: Low Growth, High Share High Growth, High Share. Stars are high-growth, high –share businesses or products.
They often need heavy investments to finance their zoom. The market rate varies from industry to industry but usually shows a cut-off point of 10% – growth rates more than 10% are considered high, while growth rates below 10% are considered low.
Low market share business is a smaller amount than half the industry leader's share, and successful companies are those whose five-year average return on equity surpasses the industry median.
Growth-share business matrix may be a business tool, which uses relative market share and industry rate of growth factors to guage the potential of business brand portfolio and suggest further investment strategies.
The BCG matrix relies on Industry rate and relative market share. BCG matrix may be a framework created by Boston Consulting Group to guage the strategic position of the business brand portfolio and its potential.
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