B. An increase in the trade deficit.
I think
Answer:
$137,800
Explanation:
A flexible budget uses the standard hour and costs adjusted to Actual level of output
thus
Flexible budget amount for direct labor = 2 x 2,600 units x $26.50 = $137,800
The benefit of investing in a corporation is stock ,because if you invest in stock shares then you can gain money when a stock goes up.
Supermarkets or other retail stores may use information technology or data mining on checkout items to determine whether certain items are often purchased together. This will help the stores decide where to place the items in relation to each other. Many times beer will be purchased with diapers and the beer will be strategically placed near the children's diaper section but on the other side of the aisle. The stores may also just have an end cap of diapers placed on the end or middle of the aisle so it can be seen by the consumers.
Answer:
Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.
Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:
Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1
If the contribution per unit has been decreased the breakeven will rise.
Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.
Option 3 is 100% right because equation 1 is
Breakeven Point=Fixed Cost/ Contribution per unit
Which says
If the contribution per unit has been decreased the breakeven will rise.
Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases
which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.
