Answer:
the fixed cost is $1.72 million
Explanation:
The computation of the fixed cost is shown below:
= Total cost - variable cost
= $3.4 million - ($4.6 million - $3.4 million) ÷ $3.4 million - $.1.2 million ÷ $2 million
= $3.4 million - 2.8 million × $0.60 million
= $1.72 million
Hence, the fixed cost is $1.72 million
Answer:
Option (C) is correct.
Explanation:
Consumer income is one of the main determinant of demand. Consumer income is related with the demand of normal and inferior good.
If there is an increase in the income of a consumer then as a result the demand for a normal good increases and shifts the demand curve rightwards.
If there is a fall in the income of the consumer then as a result the demand for a normal good also decreases and shifts the demand curve leftwards.
Alternatively, the consumer income is inversely related with the demand for inferior goods.
Answer:
Pembroke= $105,000
Multinomah= $120,000
Explanation:
Giving the following information:
The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.
The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.
Pembroke= 15,000*(82 - 75)= $105,000
Multinomah= 15,000*(90 - 82)= $120,000
Answer:
Variable overhead efficiency variance = $2,212unfavorable
Explanation:
variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
5,400 units should have taken (5,400×3.8 hours) 20,520
but did take <u> 20,800</u>
Labour hours variance 280 unfavorable
Standard variable overhead rate × <u>$ 7.90</u> per hour
Variable overhead efficiency variance $2,212 unfavorable
Variable overhead efficiency variance = $2,212unfavorable
Explanation:
strengths:
1. He or she enjoys all the profit
2. easy to start up
3. decision making is quick
4.he or she can vary the hours of work
weakness:
1.there is lack of finance
2. lack of specialised staff
3.the owner bears all the risk
4.there is unlimited liability
who might start a sole proprietor business
1. a person that wants to be their own boss.
2.extra income.
3.the entrepreneur might think he will make more money working for his self than others.
