Answer:
$20.
Explanation:
As the question require us to calculate the profit when one unit in excess of break-even point is sold, so we have to calculate the break-even quantity first. The formula to calculate the break-even quantity is:
Break-even Units = Fixed Cost / (Contribution Margin Per Unit)
where
Contribution margin per unit = Selling price per unit - variable cost per unit
⇒ Break-even units = 15 / (50 - 30) = .75.
This makes the one unit in excess of break-even volume to be 1.75. Now, we have to draft the income statement to determine the operating profit when sales volume is 1.75.
Income Statement
Revenue (50 * 1.75) $87.5
Variable Cost (30 * 1.75) (52.5)
Fixed Cost (15)
Operating Profit $20
Answer:
The correct answer is option d.
Explanation:
The long-run aggregate supply curve is a vertical straight line. This is because, in the long run, the output level is not affected by price changes. Instead, output level changes with the changes in the state of technology and level of inputs. In the long run, when price level increase, the factor prices or price of inputs will increase as well. So there will be no change in output due to the change in the price level.
The vertical long-run aggregate supply curve also reflects classical dichotomy that in the long run, when all the resources will be fully employed, an increase in the aggregate demand cause the price level to rise while supply remains constant.
It also indicates that monetary policy only affect the price level, the economic output remains constant.
Answer:
B. Full disclosure principle
Explanation:
Full disclosure principle ensures that all relevant financial information is reported
Answer:
The Question is Incomplete; Full Question is as follows;
Using variable costing, what is the contribution margin for last year?
<em>Contribution Margin = $362,900</em>
Explanation:
Computation of expenditure margin by differential costing;
<em>Sales </em><em>Minus </em><em>variable cost </em>
= $1,558,000
- Variable cost of Manufacturing(190,000 units *$1.84)
= $349,600
— variable sales and administrative costs(190,000 units *$4.45)
= $845,500
= contribution margin = $362,900
<em>Keep in mind that; </em><em>Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.</em>
<u>This is an example of "outsourcing".</u>
Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.
Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.
