Answer:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Explanation:
Giving the following information:
The weighted average contribution margin for all three products is $3.05 per unit. ABC's total fixed costs are $35,000
<u>With the information provided, we can only calculate the break-even point in units for the whole company using the following formula:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 35,000/3.05
Break-even point (units)= 11,475
<u>Now, imagine the following sales mix:</u>
X= 0.25
Y=0.40
Z=0.35
<u>We can determine the number of units for each product:</u>
X= 11,475*0.25= 2,869
Y= 11,475*0.4= 4,590
Z= 11,475*0.35= 4,016
Answer:
Business plan.
Explanation:
A business plan is a structured document that contains company goals, strategies, product and market details, and plans for every major aspect of the company.
Answer:
<em>Control</em>
Explanation:
The control cycle <em>is the incremental process in which tests are prepared, tracked, reviewed, and updated. </em>
The control cycle is widely used to continually monitor organizational expenditures and system flows.
The assumption when applying the control cycle to budgeting is that each subsequent iteration of the budget will be changed based on the information obtained when comparing the initial budget with actual results.
Answer:
Since the average variable cost curve lies below the average total cost curve, this implies that the average variable cost is the lowest price at which the producer can sell.
If there is no possible output where the price would be at least equal to the average variable costs, the firm should cease production, because it is not going to recover its costs, not to talk about making a profit.
Explanation:
A firm's average variable cost is the total variable cost divided by the total output. For example, if the total variable cost for a particular product is $4,500 with a total output of 450 units, then the average variable cost is $10 ($4,500/450).
