When a resource, such as space in the factory, has no alternative use, its opportunity cost is _____

Based on a predicted level of production and sales of 21,000 units, a company anticipates total variable costs of $105,000, fixe

tresset_1 [31]

Answer:

The budgeted amount of fixed costs for 19,000 units is $155,800

Explanation:

According to the Given Scenario the Following are Computation to find out the budgeted amount of fixed costs for 19,000 units.

$Current Contribution Margin = \frac{Fixed Cost + Operating Income}{No of Unit Sold}$

Current Contribution Margin =$25,200 + $147,000/21,000

Current Contribution Margin = $172,200/21,000

Current Contribution Margin = $8.2 per Unit

The Contribution Margin for 19,000 units = $8.2 × 19,000

The Contribution Margin for 19,000 units = $155,800

Therefore, The budgeted amount of fixed costs for 19,000 units is $155,800

5 0

4 years ago

Read 2 more answers

A risk manager says: "I recognize the theoretical possibility of an asteroid falling on one of our plants, but there is absolute

svlad2 [7]

Answer:

C

Explanation:

This case is en example of Planned, unfunded retention because here the outcome is already known but nothing can be done about it. So this does not affect our managerial and financial decision making.

Unfunded retention is type of retention plan under which losses are paid out of cash flow or out of funds obtained by borrowing

5 0

4 years ago

Goods that are rival in consumption include both A. private goods and club goods. B. club goods and public goods. C. public good

Zinaida [17]

Answer:

The correct answer is letter "D": common resources and private goods.

Explanation:

There are four types of goods: private goods, public goods, common resources, and club goods. Goods that are rival in consumption are those that cannot be used by the same person at the same time such as private goods -demand ownership- and common resources -air, for example.

8 0

3 years ago

Ibis Paper Company prepared the following static budget for November: Static budget Units/Volume 12,000 Per unit Sales revenue $

arlik [135]

Answer:

Net operating income= $159,900

Explanation:

Giving the following information:

Sales revenue= $21.00

Variable costs= $8.00

Fixed costs 13,000

For 13,300 units:

Sales= 21*13,300= 279,300

Total variable costs= 8*13,300= (106,400)

Total contribution margin= 172,900

Fixed costs= (13,000)

Net operating income= 159,900

6 0

4 years ago

How can a reduction in taxation be used to influence aggregate demand

MA_775_DIABLO [31]

Answer:

shifting the aggregate demand curve to the right.

Explanation:

8 0

3 years ago

When a resource, such as space in the factory, has no alternative use, its opportunity cost is ______.