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NISA [10]
2 years ago
12

Item 17 A certain cell phone plan charges a fee of $1 for each international call made plus $0.02 for each second of talk time f

or the international call. A business owner tracked the time and cost for each of the calls made by the employees when they traveled internationally for business. What is the appropriate value of the correlation between time and cost for the international calls?
Business
1 answer:
Mkey [24]2 years ago
3 0

Answer:

The appropriate value is 0 because there is no variability in the cost of the calls.

Explanation:

set cost

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Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue                                   39,500

variable cost of goods sold   (25,500)

variable selling expenses   <u>   (16,500) </u>

Contribution                              (2,500)

<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.

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3 years ago
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Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

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Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

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<h3>What is door-to-door promotion? </h3>
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Tis is when a person or persons walk from the door of one house to the door of another, so as to sell or advertise a product. In the case of the car company, they deliver at home for ease to their customer and drives sales upward.

Learn more about Sales promotion from

brainly.com/question/1312782

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