The <u>law of increasing relative cost </u>states that the opportunity cost of producing a good always rises as one produces more of it.
According to the law of increasing costs, production eventually loses efficiency as it grows. The labor expenses for each additional item will increase, for instance, if increased production requires overtime work from your workforce.
Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists often refers to opportunity cost. Cost is frequently mentioned in conversations or on the news.
According to the law of increasing opportunity cost, the cost of manufacturing the next unit rises as you keep up with the production of a given good.
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Answer:
$49,000
Explanation:
Missing<em>"Cash Event => Cash Paid for Salaries Second Number => _____ __?___, ______ ______ ______"</em>
<em />
Cash paid for salaries (using direct method)
Particulars Amount
Opening salaries payable $5,000
Add: Salaries expense for the current year $57,000
Less: Closing salaries payable <u>$13,000</u>
Cash paid for salaries during current year <u>$49,000</u>
Answer:
$175 more
Explanation:
She makes 500 without the promotion and 675 minus 500 is 175
Answer:
If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.
Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.
Explanation:
