Answer:
The variable cost is $0.6 per Machine Hour. So, option C is the correct answer.
Explanation:
The high low method is a method used to calculate the variable component per unit in a mixed cost. A mixed cost is a cost which contains an element of both the fixed and the variable cost.
The formula for variable cost per unit under High-low method is,
Variable cost per unit = (Cost at Highest activity - Cost at lowest activity) / (Highest activity units - lowest activity units)
The highest activity is in September while the lowest is in October.
Variable cost per unit = (13200 - 11400) / (17500 - 14500)
Variable cost per unit = $0.6 per Machine hour
Complete Question :
Michael is in sales meeting with a potential client. The client is interested in the
product but is concerned that the product costs 15% more than the competitor's.
How should Michael handle this sales situation?
A.) Offer the client a 20% discount.
B.) Ask the client how much he or she would be willing to pay for the product.
C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
D.) Say "Thanks for your time" and leave
Answer: C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
Explanation: The fact that Michael's product costs 15% more than the price of it's competitor doesn't spell the end of the deal. What Michael needs to explain and make clear to the client in the sales meeting are the vague distinctions which exists between what his own product offering and that of it's competitors. Michael needs to let the potential buyers understand and get clearly the additional offers, quality or performance associated with his own product which ultimately accounts for the higher cost of his own product.
Answer:
Cost center ⇒ Incurs costs without directly yielding revenues.
Investment center ⇒ Holds manager responsible for revenues, costs and investments.
Departmental accounting system ⇒ Provides information used to evaluate the performance of a department.
Indirect expenses ⇒ Costs incurred for the joint benefit of more than one department.
Controllable Cost ⇒ Costs that a manager has the ability to affect.
Responsibility accounting system ⇒ Provides information to evaluate the performance of a department manager.
Answer:
The pertinent focuses for Dan Jacobs choice are referenced beneath.
- The new hardware would cost GreenLife $4,500,000
-
The new hardware would twofold the creation yield of the old apparatus
The expense of new hardware and the expansion in the creation yield by 100% are the future expenses and incomes and thus they are significant for dynamic.
The old apparatus is bought previously. Consequently, the price tag of the old apparatus is immaterial for dynamic procedure. Tho director ought to consider the resale estimation of old apparatus in the dynamic. Tho resale estimation of old apparatus ought to be deducted from the expense of new hardware so as to ascertain the net money surge to buy the new apparatus.
The director ought to set up an expense and advantage examination or ascertain NPV (net present estimation) of the venture (capital planning investigation) to introduce it before the leader of the organization. The extra costs identified with extra creation ought to likewise be thought of. This investigation would support the supervisor and the president in dissecting that whether they should buy the new machine or not.
Answer:
Explanation:
Since the delivery is being attempted after the date of the contract, it is Grapes & Vines breaching the contract. Grapes & Vines’s failure to deliver on May 1 and its failure to inform Ellen of the delays a material breach releasing her from any liability under the contract. The court will most likely rule that not only has Ellen not broken the contract, that Grapes & Vines must pay her court costs due to the frivolous nature of the lawsuit.