Answer:
Location A is superior to up 40 units. From there Location B is better
Explanation:
Giving the following information:
Location A:
Fixed costs of $100,000
Variable costs of $13,000 per unit.
Location B:
Fixed costs of $300,000.
Variable costs of $8,000 per unit.
The finished items sell for $18,000 unit.
Contribution margin Location A= 18000-13000= 5,000
Contribution margin Location B= 18000 - 8000= 10,000
Income formula location A= 5000*Q - 100000
Income formula location B= 10000*Q- 300000
5000*Q - 100000= 10000*Q - 300000
200000= 5000Q
Q= 40 units
Location A is superior to up 40 units. From there Location B is better.
Answer:
B. To plan production, marketing, and budgets
Explanation:
A company needs to know accurately the demand for a good or service because it has to determine what kind of customer it is and plan the marketing accordingly. Additionally, that information will be valuable in planning plan its production volume. And afterward, with that information in hands, knowing fixed and varied costs, marketing costs and others, plan the budget accordingly. Pricing, fixed costs, demand slope, and potential sales will be determined by other factors that can include but are not limited to demand estimation.
For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.
Answer:
Absorption costing unit product cost $240
Explanation:
The computation of the absorption costing unit product cost is shown below/;
Direct materials $131
Direct labor $65
Variable manufacturing overhead $12
Fixed manufacturing overhead cost $32 ($118,400 ÷ 3,700)
Absorption costing unit product cost $240
