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Different segments of the project are delegated to respective functional units called as the Functional Organization.
<h3>
What is a Functional Organization?</h3>
The notion of specializations based on function or role is used by functional organizations as a sort of organizational structure. For businesses with one or a few product offerings as well as medium-sized and small organizations, an efficient organizational structure is ideal. For instance, the little company AB Company manufactures diapers and employs around one hundred people. A matrix organization is a sort of corporate structure that divides a corporation into various sections according to areas of specialization. Functional managers or heads of departments are responsible for managing these departments, which act as functional units.
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Answer:
(c) $5
Explanation:
Remember, To calculate marginal cost, we divide the change in production costs by the change in quantity.
In this example, the change in production cost is $200 (for hiring an additional worker) while the change in quantity of taco is 40 (increase in marginal productivity).
The marginal cost= $200/40
we get $5 as the marginal cost.
Sales: $914,000
Variable Costs: $498,130
Operating Income: $196,000
Contribution Margin Ratio = ?
Formula:
Contribution Margin Ratio = (Sales – Variable Costs) / Sales
Solution:
Contribution Margin Ratio = ( $914,000 - $498,130) /
$914,000
Contribution Margin Ratio = 45.5% (Answer)
