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2 years ago

Fixed costs can be defined as costs that:_______

Business

1 answer:

vekshin12 years ago

3 0

Answer:

d. are incurred even if nothing is produced.

Explanation:

The fixed cost is the cost which remains the same in the case when the production level is increased or decreased or same

Also if nothing is produced still the fixed cost is incurred

Like: rent, depreciation etc

This would remain the fixed . And also cannot be avoided

Therefore the correct option is d.

And other options are wrong

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Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28

Gnom [1K]

Answer:

differential cost of producing product C = $24 per pound

Explanation:

given data

B currently selling = $30 per pound

produce cost = $28 per pound

C would sell = $60 per pound

produce additional cost = $24 per pound

to find out

What is the differential cost of producing Product C

solution

we get differential cost of producing product C is express as

differential cost of producing product C = cost of (B+C) - cost of B .............1

put here value we get

differential cost of producing product C = (28+24) - 28

differential cost of producing product C = $24 per pound

3 0

2 years ago

Pine Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down. The sel

yulyashka [42]

Answer:

product B

Explanation:

The computation is shown below;

Particulars Product A Product B Product C

Selling Price $5.00 $3.00 $5.00

Less: Variable cost per unit ($3.50) ($2.00) ($2.00)

Contribution per unit $1.50 $1.00 $3.00

Machine hours per unit 0.75 0.25 1

Contribution per machine hour $2.00 $4.00 $3.00

($1.50 ÷ 0.75) ($1.00 ÷ 0.25) ($3.00 ÷ 1)

The product B should be produced as it has the highest contribution per machine hour

6 0

3 years ago

What is likely to happen if a borrower misses a payment on a credit card account?

julsineya [31]

The borrower will get a late fee for not paying on the due date.

6 0

3 years ago

Read 2 more answers

What does difficult to find finance mean?

WARRIOR [948]

a condition or state of affairs almost beyond one's ability to deal with and requiring great effort to bear or overcome. "grappling with financial difficulties"

4 0

2 years ago

J Crane, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended Janua

kari74 [83]

Answer:

J Crane, Ltd

Contribution Margin Income Statement

For the Month ended January 31 YY

$ $

Sales revenue 750,000

Less Variable cost :

Cost of goods sold 300,000

Selling expenses 19,500

Admin Expense 37,500

357,000

Contribution Margin 393,000

Less Fixed cost :

Selling expense 4,060

Administrative expense 12,000

16,060

Net income 376,940

Working:

Number of Coat sold = 750,000/250 = 3000 coats

Variable costs:

Selling expenses = 6.5 x 3000 = 19500

Admin Expense = 750,000 x 5% = 37,500

Fixed cost:

Selling expenses = 23560 - 19500 = 4060

Admin Expense = 49,500 - 37,500 = 12,000

4 0

3 years ago