Answer:
a. selling price and variable cost per unit.
Explanation:
The contribution margin is the share of revenue that a product contributes to pay for fixed costs and profits. The contribution margin can be calculated per unit or for an entire production. The total contribution margin is the margin for the entire product line or the business.
Calculating the contribution margin involves subtracting variable costs from the selling price. In other words, the contribution margin equals selling price minus variable costs. The concept of contribution margin assists management in determining break-even points and profitability at different production levels.
Answer:
The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Explanation:
PPF model the production possibility frontier states that two types of goods can be produced, at any given time of production, and for certain resources provided.
This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources.
Though, the results of this curve are applicable to real world goods, where the nature and number of goods both are complex.
Therefore, the correct statement is:
As stated in answer.
Explanation:
The product cost is the cost that have incurred related to the product. It involves direct material cost, direct labor cost, and the manufacturing overhead account
And, the period cost is the cost which includes the major part of the selling and administrative expenses and is incurred as the time passes
So, the categorization is shown below:
a. Salaries of scientists studying ways to speed forest growth. = Period cost
b. Cost of computer software to track WIP Inventory. = Product cost
c. Cost of electricity at the paper mill. = Product cost
d. Salaries of the company’s top executives. = Period cost
e. Cost of chemicals to treat the paper. = Product cost
f. Cost of TV ads. = Period cost
g. Depreciation on the manufacturing plant. = Product cost
h. Cost to purchase wood pulp.= Product cost
i. Life insurance on the CEO. = Period cost
