Gridiron Merchandising anticipated selling 30,000 units of a major product and paying sales commissions of $8 per unit. Actual s
1 answer:
Answer:
C. $13,100U.
Explanation:
The cost variance is given by the difference between the actual cost of commissions and the projected cost of commissions of 30,000 units at $8 each:
Since the actual cost is higher than the anticipated cost, the balance is unfavorable.
Gridiron would report a cost variance of: C. $13,100U.
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Answer:
The cross price elasticity of salsa and guacamole is 0.2. The two goods are substitutes.
Explanation:
The price of guacamole is increased from $2 to $2.5.
Percentage change in price
=
=
= 25%
The demand for salsa rises by 5%.
The cross price elasticity will be
=
=
= 0.2
We see that the cross price elasticity is positive. This means that the two goods are substitutes. When price of one good will increase consumers will prefer the cheaper substitute, increasing its demand.
Answer:
29,257 units
Explanation:
The break-even point is reached when the revenue from sales equals total variable plus fixed costs.
The break-even point, in units is:
Rounding up to the nearest whole unit, the break-even point is 29,257 units.