Adding the target profit to fixed expenses before dividing by the contribution margin ratio
- adding the target profit to fixed expenses before dividing by the unit contribution margin
Answer:
Results are below.
Explanation:
Giving the following information:
Direct materials $150
Direct labor $90
Manufacturing overhead (variable) $60
Manufacturing overhead (fixed) $120
<u>The absorption costing metho</u>d includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
<u>The variable costing method i</u>ncorporates all variable production costs (direct material, direct labor, and variable overhead).
Variable costing:
Unitary production cost= 150 + 90 + 60= $300
Absorption costing:
Unitary production cost= 300 + 120= $420
Answer:
The correct answer is option b.
Explanation:
A market will experience a surplus when the quantity supplied is higher than the quantity demanded. The quantity supplied will be more than the quantity demanded when the actual price is higher than the equilibrium price.
This is because of the law of supply and the law of demand. At a higher price, the firms will supply more but the consumers will demand less.
So the market will be in surplus when the actual price is $20, the equilibrium price is $25, the quantity supplied is 100 and the quantity demanded is 75.
Answer:
The answer is C. only liable on pre-formation debt until a novation occurs.
Explanation:
The corporation and the third-party agree to release the promoter from liability and to substitute the corporation in place of the promoter as the party liable on the contract. May be express or implied.
