Answer:
C. categorizes expenses according to the cost function
Explanation:
According to the contribution margin income statement, a company shows its sales revenue, fixed and variable expenses. In that case, the company does not show the cost of goods sold. The company directly deducts its variable expenses from sales revenue to determine the contribution margin. Therefore, option A is wrong. Each financial statement of performance (Whether for manufacturing or non-manufacturing), has to be shown. Therefore, the contribution margin format shows the net operating income. It is also false.
As in contribution margin format, fixed and variable expenses are deducted from sales. Therefore, option C is correct.
Answer:
b. cost-plus pricing
Explanation:
cost-plus pricing is a price base that involves a markup addition to the cost of services and goods to get to the final selling price. In this technique you compute all cost (material, labor, etc) and then add a percentage in order to obtain the product's price
Answer:
FOB destination
Explanation:
FOB destination pricing. FOB destination is an acronym for Free on Board destination. This means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyers receiving dock , the sellers pays and bears the freight charges and it also owns the goods while they are in transit.
Answer:
100 sweatshirts
Explanation:
To calculate the breakeven, we will first calculate the Contribution earned from each of the unit (sweatshirt) produced and sold.
Contribution per unit = Selling price per unit - Cost of producing one unit
Contribution per unit = $25 - ($10 + $2)
Contribution per unit = $13
Then in order to calculate breakeven, we divide the total fixed cost from the Per unit Contribution earned to determine the no. of unit at which we would be at breakeven (i.e. no profit no loss). As shown below:
Breakeven = Total Fixed Cost / Contribution per unit
Breakeven = ($1,000 + $300) / $13
Breakeven = 100 units of sweatshirt
Answer:
. C) a drop in the foreign exchange value of the dollar.
Explanation:
An aggregate demand curve can be regarded as a curve that display total spending that is available
domestic goods/services with respect to their price level. the horizontal axis provide the real GDP while price level is displayed by vertical axis. It should be noted that The aggregate demand curve would shift to the right as a result a drop in the foreign exchange value of the dollar.
