Answer:
The correct option is A
Explanation:
Contribution Margin = Sales - Variable expense
= $150,000 - $120,000
= $30,000
Doombug's Profit Margin = Avoidable fixed expenses - Contribution Margin
= $8,000 - $30,000
= ($22,000)
Increase or Decrease in net operating income = Additional contribution margin - Doombug's Profit Margin
= $16,000 - ($22,000)
= ($6,000)
Therefore, there is decrease in net operating income of Doombug. So, there is decrease of $6,000.
In order to write the proposal, i will first count all the expense that should be paid for using both off-site storage and the computerized system.
After that, i will compare the cost to the benefit that the department will get if we're changing into the computerized system (such as larger space, faster processing, more secure, etc)
It is a organization of markets
Answer:
B. 278,621
Explanation:
The break-even point is equal to fixed cost divided by contribution margin per unit from the contribution margin concept.
Break-even point = Fixed costs/ contribution margin per unit
contribution margin per unit = selling price- variable cost
In this case,
fixed costs are $404,000.
selling price $2.50,
variable cost $1.05
Contribution margin per unit : $2.50-$1.05= $1.45
Break-even point = $404,000/ $1.45
=278,620.689
=278,621 units
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