Answer:
Indifferent selling price =$67 per units
Explanation:
The selling at which Mel rose would be economically be indifferent between accepting and rejecting the special order from Moore is that that equates the relevant cost of making to the revenue from t
Relevant variable cost making
= 22.80 + 18.60 + 14.20 + (75%×12.80) = $65.2
$
Variable cost of special order (= $65.2
× 3,500)= 228,200
Cost of machine <u>6,300</u>
Total relevant cost of special order <u>234,500
</u>
<u>
</u>
The price at which Melrose would be indifferent
= total relevant cost/ number of units
$234,500/3500 units
=$67 per units
If peanuts cost .25 per bag, you would divide $10 by .25 to determine how many bags you are able to buy.
Answer:
The question you have provided is missing important information needed for the calculation of break even point.
However step by step approach for the calculation of the break even point is given below :
Understand what break even point is :
Break even point is the level of operation where a Company neither makes a profit nor a loss.
Break even point in units calculation :
<em>Break even point in units calculation = Fixed Costs for the Period ÷ Contribution per unit</em>
Where, <em>Contribution per unit = Selling Price per Unit less Variable Cost (Manufacturing and Non Manufacturing) per unit</em>
Conclusion :
At Break Even Point level,Total Contribution will equal Total Fixed Cost (thus no profit nor loss)
The only data the question provided is :
Fixec Cost - $305,000
The answer is: A.When the price of a good decreases, sellers produce less of the good
When the price of a good decrease, the amount of profit that the sellers could made is also decreasing. Because of this, sellers would feel less motivation to sell that product and start to reduce the supply of the product and replace it with newer ones.
