The available alternatives can be divided into increments.
Answer:
$ 8.9
Explanation:
Given:
Direct materials cost = $ 10.90
Direct labor = $ 14.90
Variable overhead cost = $ 3.90
Fixed overhead cost = $ 8.90
Selling price offered for the product = $ 38.60
Net incremental cost = Offered selling price - ( Direct materials cost + Direct labor + Variable overhead cost )
The fixed cost is not included because, it will be incurred whether the offer is accepted or not.
therefore,
Net incremental cost = $ 38.60 - ( $ 10.90 + $ 14.90 + $ 3.90 )
or
The net incremental cost = $ 8.9
Answer: Earnings are reported by the investee in its financial statements
Explanation:
Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.
Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.
<h2 /><h2>Answer:</h2>
Product mix, also known as product assortment or product portfolio, refers to the complete set of products and/or services offered by a firm. A product mix consists of product lines, which are associated items that consumers.
For example, your company may sell multiple lines of products.Or your product lines may be vastly different, such as diapers and razors.
