Those factors are:
<span>1. the ratio of purchased material and services costs as a percentage of total costs or income. Whcich will determine how much variable cost will incurred
2. the nature of the products or services acquired. Which determine the time table of the supply process
3. the extent to which supply and suppliers can provide competitive advantage. Which will determine the final pricing that come to the customers</span>
<span>False. Contractual capacity includes the financial ability to pay for the benefits of a contract.
A contractual capacity is being able to have a legally binding contract. Some people are able to have one and some are not depending on their mental capacity/state of mind. Convicts, those under the influence and mentally handicap are unable to have contractual capacity. </span>
Answer:
Flexible Budget for 18,000 units $
Direct labour ($6 x 18,000) 108,000
Direct material ($1 x 18,000) 18,000
Total fixed cost <u>48,000</u>
Total cost <u>174,000</u>
Direct labour cost per unit = $72,000/12,000 units = $6 per unit
Direct material cost per unit = $12,000/12,000 units = $1 per unit
Explanation:
In this case, we need to determine the direct labour cost per unit by dividing the total labour cost in the static budget by the units of production in the static budget. We also need to calculate the direct material cost per unit by dividing the total material cost in the static budget by the units of production in the static budget. Then, we will multiply the direct labour cost per unit and direct material cost per unit by the units of flexible budget. The total fixed cost remains fixed throughout the level of activities.
Answer:
110,257 units.
Explanation:
Fixed operating costs (FC) = $430,000
Variable costs (VC) = $2.10 per unit,
Sales price (P) = $6.00 per unit.
The revenue, as a function of 'n' units produced, for this company is given by:
The break-even point occurs when revenue is zero. The break-even point is:
Rounding it up to the next whole unit, the sales volume needed to reach the break-even point is 110,257 units.
Answer:
Trade salesperson.
Explanation:
Trade salesperson: They are the person who keeps in touch with the retailer and helps them to display, advertise and sell a product to the end-user. They also advise retailers on how to push the product in the market and introducing new strategies to promote its product. In the recent era of the supermarket, it is important to position the product at the right place to make it visible to the customer and the right price to make it affordable to the target customer.