Is known as multiple- unit pricing.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit.
During the first quarter, 3,000 units were purchased for $40 per unit.
Sales of 3,400 units at $65 per unit were made.
LIFO (last-in, first-out)
COGS= 3,000*40 + 400*25= 130,000
Sales= 3,400*65= 221,000
COGS= (130,000)
Gross profit= 91,000
Answer:
The company need to sell 12,999 boxes to produce a net income of $12,750.
Explanation:
Contribution per unit = Price * Contribution Margin ratio
Contribution per unit =$15 * 0.20
Contribution per unit =$3
Net Income before tax= $12,750 / (1 - 0.15) = $12,750 / 0.85
=$15,000
Boxes of Cupcakes to sell = [Fixed cost + Net income ] / Contribution per unit
= (23,997 + 15,000) / 3
= 38997 / $3
= 12,999 boxes
The company need to sell 12,999 boxes to produce a net income of $12,750.
Warren's earnings would go up (or down) by twice as much as Miller's with an equal increase (or decrease) in sales. The operating leverage is a ratio which describes the relation between the sales, the variable cost, and the fixed cost that used in the production process. 1.5 operating leverage shows that there will be $1.5 increasing in income for each of $1 increase in sales. 3 operating leverage shows that there will be $3 increasing in income for each of $1 increase in sales
Answer:
C. freely operating economy in which all markets are perfectly competitive.
Explanation:
When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.
- In such a free economy, demand for goods and services are not controlled.
- The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not.
- It is better to make such market competitive without interfering into how resources are managed and dispensed.
