Answer:
$24,000
Explanation:
Product A Product B Product C
sales 70,000 97000
Variable cost 37000 51000
Contribution margin 33000 46000
Avoidable cost 10,000 20000
Unavoidable cost 7000 12000 9400
Operating income 16000 14000
Total operating income if product C is dropped is (16000+14000 +3400-9400)
=$24000
Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well
Answer:
The correct answr is C.
Explanation:
Giving the following information:
Cost Machine Hours
January $52,200 20,000
February 75,000 29,000
March 57,000 22,000
April 64,000 24,500
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)
Variable cost per unit= (75,000 - 52,200) / (29,000 - 20,000)= 2.53
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 75,000 - (2.53*29,000)= 1600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 52,200 - (2.53*20,000)= 1600
Answer:
cartel
Explanation:
A "cartel" is a<em> group of competitors or market participants</em> who are independent from each other. They <u>work in unison by cooperating secretly</u> in an <em>unlawful way</em> so they can control the supply and price of their products. In this way, they can dominate the market.
Such type of alliance with rivals have existed since the ancient times. It <em>increased following </em><em>World War I,</em> but<em> started declining after </em><em>World War II</em>.
So, this explains the answer.
Answer:
a broker who buys and sells securities on a stock exchange on behalf of clients.
it's the one that says person who buys or sells equities
