Answer:
The answer is $36.00
Explanation:
Contribution margin per unit is when variable cost per unit is subtracted from selling price per unit. Contribution is that part of revenue that was not used by variable costs and was used to cover fixed costs
selling price per unit = $76.00
variable cost per unit = $40.00
Therefore, contribution margin per unit is $76.00 - $40.00
= $36.00
Answer:
True
Explanation:
Contracts should be in writing because this guarantees that all the terms of the agreement are documented and the responsabilities of each party are stated. Also, contracts that involve the sale of goods with a value higher than $500 have to be in writing to be enforceable. So, according to this and considering that the total cost of the lighting is $5,000, it is true that the contract needs to be in writing.
1) Change the nature of the product
2) Give away discounts
3) Reduce the price of the product compared to the competitiveness of the market
Answer:
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Explanation:
According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,
price = $8.10
avg variable cost = $8.00
avg total cost = $8.25
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Answer:
Kohl's Average total Assets were $1,000,000
Explanation:
1.
Asset Turnover = Net Sales / Average fixed Assets
Net Sales = Asset Turnover x Average fixed Assets
2.
Account Receivable Turnover = Net Sales / Average Account receivable
Net Sales = Account Receivable Turnover x Average Account receivable
According to given condition
Asset Turnover x Average fixed Assets = Account Receivable Turnover x Average Account receivable
2 X Average fixed Assets = 10 X $200,000
Average fixed Assets = $2000,000 / 2
Average fixed Assets = $1,000,000
