Answer:
<h2>
a. Traditional Cost</h2>
Product 540X
= Revenue - Cost
= 200,000 - 53,000
=$147,000
Product 137Y
= 162,000 - 48,000
= $114,000
Product 249S
= 92,000 - 25,000
= $67,000
<h2>
B. ABC Costing</h2>
Product 540X
= Revenue - Cost
= 200,000 - 47,100
=$152,900
Product 137Y
= 162,000 - 29,000
= $133,000
Product 249S
= 92,000 - 49,900
= $42,100
c.
Difference in Income for 540X
= 4.01%
Difference in Income for 137Y
= 16.67%
Difference in Income for 249S
= -37.16%
Answer: Option (A) and (B) are correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
In our case, the opportunity cost of purchasing Aldens is the savings that is foregone and classic, snazzy look that comes with wearing wingtips.
Answer:
![\left[\begin{array}{cccc}&$Flexible Budget&$Actual&$Variance\\$Sales&548,000&500,000&48000U\\$Variable&-82,200&-113,700&31,500U\\$Contribution&465,800&386300&79,500U\\$Fixed Cost&-142,000&-134,000&8,000F\\$Income&323,800&252300&71,500U\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24Flexible%20Budget%26%24Actual%26%24Variance%5C%5C%24Sales%26548%2C000%26500%2C000%2648000U%5C%5C%24Variable%26-82%2C200%26-113%2C700%2631%2C500U%5C%5C%24Contribution%26465%2C800%26386300%2679%2C500U%5C%5C%24Fixed%20Cost%26-142%2C000%26-134%2C000%268%2C000F%5C%5C%24Income%26323%2C800%26252300%2671%2C500U%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
Sales Price: 434,000 / 21,700 = 20
Variable cost: 65,100 / 21,700 = 3
fixed cost: 142,000
Values at 27,400 units:
sales: 27,400 units x $20 = 548,000
variable cost: 27,400 units x $3 = 82,200
Now, we compare with the actual result and calcualte the income
One would assume that the answer is “Job”
Answer:
In a suburban area with lots of surrounding neighbourhoods
Explanation:
This is because in this area, you are likely to receive middle-upper class customers at the mall who you can ensure will be a great asset to the new mall. Additionally, in a busy area like this you can be certain the mall will always be full of people!
