Answer:
The operating profit for this year amounts to $ 550,000
Explanation:
Operating Profit is computed below as:
Operating Profit = Revenue - Expense (Fixed Cost + Variable Cost)
= $1,950,000 - ($200,000 + $1,200,000)
= $1,950,000 - $1,400,000
= $550,000
Revenue = Number of frozen dinners × Selling Price
= 150,000 × $13
= $1,950,000
Variable Cost = Number of frozen dinners × Cost per frozen dinner
= 150,000 × $8
= $1,200,000
Answer:
TRUE
Explanation:
Training is the hidden cost associated with ERP implementations that is considered the most under-estimated because at the initial stage of Enterprise resource planning software purchase, only the cost of purchase and installation is considered. However the software cannot be used without training the users on how to use the software.
Such training costs are sometimes as significant as 25% or more of the cost of the software and these costs are not included in the list price of the purchase of the ERP. Furthermore even when the training costs are estimated, they are often under-estimated as the number of users may increase with time as the organisation grows.
