Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
In monopolistic competition, a firm introduces a new and differentiated product and will temporarily have a <u>less elastic</u> demand for its product and is able to charge a <u>higher price than before</u>.
Monopolistic competition exists while many agencies offer competing products or services which are similar, but no longer perfect, substitutes. The limitations to entry in a monopolistic aggressive industry are low, and the choices of any individual company no longer directly have an effect on its competition.
The demand curve as confronted with the aid of a monopolistic competitor isn't always flat, but as a substitute downward-sloping, which means that the monopolistic competitor, just like the monopoly, can increase its price without dropping all of its customers or lower its price and advantage greater customers.
A monopolistic market is a market structure with the characteristics of a natural monopoly. A monopoly exists when one provider gives a particularly suitable provider to many purchasers. In a monopolistic marketplace, the monopoly (or dominant employer) exerts manipulation over the market, enabling it to set the charge and supply.
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The TASB, is the Texas Association of School Boards. A bond is an agreement between a company and a person or two or more people on the purchase of an item, most of the times known as a bond. In this case, the agreement is between the school district and the bond holder. The district pays the bondholders interest and the bond holder receives a tax write off for donating to the school district.
Answer:
An owner is personally liable for business debts.
All profits go to shareholders.
Explanation:
Answer:
(1) $132,000
(2) $66,000
Explanation:
Selling price per unit:
= Sales ÷ No. of units
= $400,000 ÷ 5,000
= $80
Variable cost per unit:
= variable cost ÷ No. of units
= $247,000 ÷ 5,000
= $42
Alternative 1:
Contribution margin = Sales - variable cost
= (5,000 × $80 × 1.1) - (5,000 × $42)
= $440,000 - $210,000
= $230,000
Net income = Contribution margin - Fixed cost
= $230,000 - $98,000
= $132,000
Alternative 2:
Contribution margin:
= sales - variable cost
= $400,000 - ($400,000 × 59%)
= $400,000 - $236,000
= $164,000
Net income = Contribution margin - Fixed cost
= $164,000 - $98,000
= $66,000
