Answer:
decisional
Explanation:
She is playing a decisional role in the above scenario since she has to make the necessary arrangements and arguments and select the best possible price for the given scenario.
Answer:
Direct material price variance= $12,500 unfavorable
Explanation:
Giving the following formula:
The standard price per pound is $2.00.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The actual purchase price per pound of materials was $2.25.
<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 2.25)*50,000
Direct material price variance= $12,500 unfavorable
Answer:
A's segment profit margin is: $151,000
Explanation:
<u>Calculation of A's segment profit margin</u>
Sales revenue $ 810,000
Less Variable operating expenses ($319,000)
Controllable Contribution $491,000
Less Fixed expenses:
Traceable to A and controllable by A ($230,000)
Traceable to A and controllable by others ($111,000)
Profit Margin $151,000
<span>Because farm products have a low elasticity of demand a small change in output will have a similar effect on the price. Since the low elasticity of demand directly relates to </span>pricing, when the smaller change in output happens, a smaller drop in profits does as well. The price of the item will decrease to compensate for less products selling.
