<u>Answer: </u>Option E
<u>Explanation:</u>
In contract manufacturing the goods are produced by a firm under a brand name of other firm on the basis of the contract. The contract manufacturers sign contracts with more than one firm to produce the goods. This type of manufacturing is mostly used in international markets due to availability of cheap labor and materials used for production in manufacturing countries.
For some of the products the contract manufacturers even provide the service of designing, distributing, assembly and manufacturing. the regulations for production also less in these countries. Contract manufacturers are found mostly in developing countries.
Answer:
a. $8,000.
Explanation:
The computation of the amount of overhead cost assigned to the product I is shown below:
= $40,000 ÷ 2,500 × $500
= $8,000
Hence, the amount of overhead cost assigned to the product I is $8,000
Therefore the correct option is a.
Answer:
given statement is true
Explanation:
given data
sells blankets = $25 each
variable cost = $10
fixed cost = $4,500,000
break minus even point = 300,000 units
to find out
true/ false
solution
we will check here break minus even point for find true or false
so here
Contribution is express as = sells blankets - variable cost
Contribution = $25 - $10 = $15
so
break minus even point = 
put here value
break minus even point = 
break minus even point = 300,000
so we can say given statement is true
