Answer:
The contribution margin per unit is $7
Explanation:
The contribution margin per unit can be defined as the difference between the selling price per unit and the variable cost per unit.
Contribution margin per unit = Selling price - Variable cost
Contribution margin per unit = $12 - $5
Contribution margin per unit = $7
The contribution margin per unit is $7
Answer:
The straight-line depreciation method and the double-declining-balance depreciation method:
Produce the same total depreciation over an asset's useful life.
Explanation:
The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP). The other two methods are sum of the years' digit and units of production. The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount. For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate. Depreciation expense is then calculated on the declining balance until the salvage value is left. This is why they produce the same depreciation over the asset's useful life.
Answer:
d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.
Explanation:
Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight because this bond is risky and uncertain.
This means the company would not want to run at a loss
Answer: The correct answer is : c. flexible production capacity can be configured to maximize profits in the new environment.
Explanation: Starting from a fixed volume of production, a company is more flexible if it produces a larger quantity of products. Flexibility will provide the ability to have operational production lines in a defined time interval.
