Answer:
b. between 70 and 80 units
Explanation:
In this question we have to compute the break even point in units which is shown below:
Break even point in units = (Fixed cost ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So, the units would be equal to
= ($10,000) ÷ ($165 - $35)
= $10,000 ÷ $130
= 76.92 units
Answer:
Option C It attempts to determine the retail price by using production costs as a base.
Explanation:
This approach helps in determining the retail price of the competitors that he is charging in the market. This gives a better insight to what the production costs are of the competitors.This information is very important for pricing decisions and for cost control strategy. This gives a better insight where we are and where we must be. So the option C is correct here.
Answer:
The answer is no but E.
Explanation:
The answer is all of the above.
Net working capital is the difference between current asset and current liability.
Current assets are the type of assets that have a life-span of a year or less e.g inventory
Current liability is the obligation that must be repaid within a year. For example, accounts payable, notes payable, accruals etc.
Therefore, all of the above is the answer
An example of a psychological pricing strategy would be to mark somethings price as $19.95, instead of $20.00. This way it psychologically looks like less money to spend.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Activity Data Activity Cost
Inspecting components (sampling only) $ 210,000
Reworking products (due to failed component) $2,454,000
Warranty work (due to failed component) $1,923,000
Sampling hours:
Hydra 60
Parabel 2,600
Activity rate= 210,000/(2,660)= $78.95= $79 per hour
