Answer:
A) decrease the degree of operating leverage
Explanation:
The contribution margin is
sales - variable:
(sales + 2) - (variable + 2) = sales - variable
no change
so B is FALSE
as the contribution margin ratio is:
(sales - variable ) / sales
this increase will impact the contribution margin ratio.
(sales + 2 - (variable +2))/ (sales + 2)
(sales - variable) / (sales + 2)
the CMR will decrease.
so D is FALSE
the break-even on sales will increase as the CMR decreases
more units are needed to fullfil the fixed cost
so C is FALSE
A) decrease the degree of operating leverage
ΔEBIT / Δrevenue
sales increase and the variable cost increases
a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.
Answer:
Manufacturing cost= $92.5
Explanation:
Giving the following information:
Predetermined overhead rate= $4.2 per machine hour
Job 664:
2.5 machine hours
$26.00 of direct materials
4 hours of direct labor for $14 per hour.
<u>To allocate overhead, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 4.2*2.5= $10.5
<u>Now, the manufacturing cost:</u>
Manufacturing cost= 10.5 + 26 + 4*14
Manufacturing cost= $92.5
Answer:
Note: See table attached to question below to fully understand
Marketing mix Business traveller Luxury traveller
element segment segment
<em>Product strategy</em> Luxury car SUV or Minivan
<em>Price strategy</em> Premium Saver
<em>Promotion strategy</em> Gold club Free car seat
<em>Place strategy</em> Airport hubs Park access
In vertical analysis of the income statement, we usually express each income statement item as a percentage of: sales.
<h3>What is income statement?</h3>
Income statement can be defined as the statement that help to show the income and expense of a company in which when the income is higher than the expense it is net income and when the expense is higher than the income it is net loss.
In vertical analysis of the income statement the income statement item is often express as a percentage of sale.
Therefore the correct option is D.
Learn more about income statement here:brainly.com/question/15169974
#SPJ1
Answer:
decrease in marginal cost for firms in the industry and an increase in the industry supply curve
Explanation:
Supply is the ability of suppliers to produce goods to meet demand for that good at a particular period in time.
There will be an increase in demand when procedures for production are more efficient and when cost reduces.
In this case where there is a technological advance that improves productivity, the suppliers will be able to produce more goods at less cost.
So marginal cost will decrease because of the improved technology and supply will increase because of more efficient process of production.
