Answer:
50 units
Explanation:
The computation of the break even level of output is given below:
TVC = AVC × Q
= 25 × Q
Total cost is
= TVC + FC
= 25Q + $2,500
Total revenue is
= P × Q
= 75Q
Now in Break even
TR = TC
75Q = 25Q + $2,500
Q = $2,500 ÷ 50Q
= 50 units
Capital expenditure decisions are useful for estimating inventory acquisition costs. always involve the acquisition of long-lived assets. consist of a final list of approved projects. all of these answer choices are correct.
Answer:
always involve the acquisition of long-lived assets
Explanation:
Capital expenditures can be regarded as the investments that is made by
companies in order to grow or maintain their business operations.
It can as well be regarded as capital expense and it's explained as money that is been spent by an organization or corporate entity in buying, maintaining as well as improving its fixed assets, these asset could be buildings, equipment, vehicles or land.
It should be noted that Capital expenditure decisions always involve the acquisition of long-lived assets
Yum Foods recently merged with Clean Plates. Which of the following activities should HR perform after the integration process?
A) It should assess the risks involved with the merger.
B) It should retain key talent.
C) It should identify and establish a new culture.
D) It should conduct due diligence.
The HR should identify and establish a new culture after the integration process.
Merging of business establishments or companies mean the coming together or acquiring of one company by another. In short, it is when two or multiple companies join to form a single business.
In the given scenario, Yum Foods and Clean Plates are two business enterprises that have their separate ideas and policies. But when they merge, that means such individualistic ideas and concepts can no longer be retained or followed. To accommodate the two businesses, the HR team must find new ideas and policies that can work for the newly merged business.When two or more companies join to form a single company, it is always necessary to make new changes in the concepts and work culture. This is also what HR should do in the merger of Yum Foods and Clean Plates. Thus, the correct answer is option C.
Learn more about merger here:
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A company makes a payment of $4,680 towards one-year insurance premium on March 1. Calculate the amount of prepaid insurance that should be reported on the August 31 balance sheet with respect to this policy.
Answer: $2,340
Explanation:
The total annual insurance is $4,680. This is prepaid insurance however and will need to be apportioned to months within the year in order to be recognized as an expense as the months go by.
The monthly insurance will be:
= 4,680 / 12 months
= $390
From March 1 to August 31 is 6 months. Total insurance recognized will be:
= 390 * 6
= $2,340
A firm has to choose between two technologies; both produce same output with one being labor intensive and other being capital intensive. The firm will use labor intensive technology when _________________.
Answer:
The firm will use labor intensive technology when the marginal product of using labor intensive technology is greater than the marginal produce of capital intensive technology
Explanation:
Marginal product is the change in total product when the amount of input used in changed by 1 unit
When choosing which form of technology to use, a firm would choose the technology that yields the highest marginal product
For example, imagine a firm can choose between using labour or capital in its production. When labour is increased frim 10 to 20 units, output increase from 100 to 500 units
when capital is increased frim 10 to 20 units, output increase from 100 to 200 units
Marginal product of labour = 500 - 100 / ( 20 - 10) = 40
Marginal product of capital = (200 - 100) / (20 - 10) = 20
Marginal product of labour is higher than the Marginal product of capital. the firm should be labour intensive
An automatic stabilizer:________
a) increases inflationary pressure during expansions.
b) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
c) increases tax revenue relative to government spending throughout the business cycle.
d) decreases tax revenue relative to government spending throughout the business cycle.
e) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
Answer:
E
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Automatic stabilizers contrasts with discretionary fiscal policies.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $85,000. The accounts receivable control account was $38,000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana supplier. On December 31, provide the journal entry for Santana's contribution to the partnership.
Answer:
Date Account Title Debit Credit
12/31 Cash $23,000
Patent $85,000
Accounts Receivable $38,000
Accounts Payable $10,000
Allowance for doubtful debt $2,000
Capital $134,000
The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,000 per month
Depreciation $1,100 per month
Maintenance $2,940 per month
Maid service $24 per room
Other costs $46 per room
Required:
Determine the innâs break-even point in number of rented rooms per month.
Answer:
Results are below.
Explanation:
First, we need to calculate the total fixed cost and the total unitary variable cost:
Total fixed cost= salaries + utilities + depreciation + maintenance
Total fixed cost= 7,500 + 1,000 + 1,100 + 2,940
Total fixed cost= $12,540
Total unitary variable cost= 24 + 46
Total unitary variable cost= $70
As the unitary contribution margin is negative (65 - 70), the company will never break even. I will assume that the selling price is incorrect, and the room costs $85:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,450 / (85 - 70)
Break-even point in units= 830
Suppose a third firm enters the market. If they all don't cheat, then they split the profits three ways so that each firm gets 2 million. If one firm cheats, he steals profits from the other two firms and earns 5.5 million while the other firms incur losses of 1 million. Will it be harder or easier to sustain cooperation?
Answer: Harder to sustain cooperation
Explanation:
When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.
Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.
Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,000. How many Standards would Roosevelt sell at the break-even point?
A. 36,000
B. 40,000
C. 60,000
D. 24,000
Answer:
D. 24,000
Explanation:
Calculation to determine How many Standards would Roosevelt sell at the break-even point
First step
Total sales = 40000 + 60000
Total sales= 100000 units
Second step
Standard = 40000 / 100000
Standard= 0.4
Third step
Supreme = 60000 / 100000
Supreme= 0.6
Fourth step
Overall break even in units = 1800000 / 30
Overall break even in units= 60000 units
Now let calculate the Standards sales at break even point
Standards sales at break even point = 60000 *
0.4
Standards sales at break even point =24000 units
Therefore the Standards sales at break even point is 24000 units
Wiley Hill opened Hill's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:
1. Wiley invested $41,000 cash in the corporation.
2. Wiley contributed $116,000 of equipment to the corporation.
3. The company paid $3,600 cash to rent office space for the month.
4. The company received $32,000 cash for repair services provided during March.
5. The company paid $7,800 for salaries for the month.
6. The company provided $4,600 of services to customers on account.
7. The company paid cash of $2,100 for monthly utilities.
8. The company received $4,700 cash in advance of providing repair services to a customer.
9. The company paid $6,600 cash in dividends to Wiley. (sole shareholder)
Based on this information, the balance in Stockholders' Equity reported on the Balance Sheet at the end of March would be:
A. $178,200.
B. $173,500.
C. $165,300.
D. $6,800.
E. $29,500.
Answer: B. $173,500.
Explanation:
First calculate the Net income:
= Repair services + Services on account - Rent - Salaries - Utilities
= 32,000 + 4,600 - 3,600 - 7,800 - 2,100
= $23,100
Equity is:
= Cash investment + Equipment investment + Net income - Dividends
= 41,000 + 116,000 + 23,100 - 6,600
= $173,500
One bond has an 8% coupon and a 10% current yield, the other has a 10% coupon and an 8% current yield. Which bond is cheaper
Answer: The bond with the 8% coupon and a 10% current yield.
Explanation:
When a bond has a coupon rate that it less than the yield, it is said to be a discount bond because it will be trading at a price that is less than its par value. The first bond will therefore be trading at a price lower than its par value.
The second bond however, is a premium bond. It will be trading at a price that is higher than its par value because that is what bonds so when their coupon rate is higher than their yield.
The first bond will therefore b cheaper because:
First Bond < Par < Second bond
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $107 each. Each trailer incurs $44 of variable manufacturing costs. The Trailer division has capacity for 24,000 trailers per year and incurs fixed costs of $560,000 per year. Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions
Answer: $107
Explanation:
When a division is able to sell all of its products to consumers outside the company, the transfer price within the company should be at the same price that the good would be sold to outside consumers.
This is to ensure that the division does not suffer an economic loss by selling to another division instead of selling to an outside customer. In this case therefore, the Trailer division should transfer the trailers at the retail price of $107 that it would have made from selling to outside customers.
Blart Corp. recently paid a dividend of $5.00 per share. Analysts forecast future dividends will increase by 2% forever. The required rate of return that investors demand to hold Blart Corp.'s stock is 8% What is its estimated price per share today
Answer: $85.0
Explanation:
The formula to calculate the estimated price per share today will be:
Po = Do (1 + g) / (r - g)
Where,
Po = Current price
Do = Current dividend = 5.00
g = Dividend growth = 2% = 0.02
r = Required rate of return = 8% = 0.08
Therefore, the estimated price per share today will be:
= 5.00(1 + 0.02) / (0.08 - 0.02)
= 5.00(1.02) / 0.06
= 5.10 / 0.06
= 85.00
Therefore, the answer is $85
On January 1, 2014, P Company purchased an 80% interest in S Company for $616,800, at which time S Company had retained earnings of $295,600 and common stock of $340,300. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that P and S Companies reported net incomes from their independent operations of $199,900 and $95,700, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014.
Answer:
For the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140
Explanation:
This can be calculated as follows:
Net income of S Company = $95,700
Controlling interest percentage = P Company percentage interest in S Company = 80%
Noncontrolling interest percentage = 100% - Controlling interest percentage = 100% - 80% = 20%
Therefore, we have:
Controlling interest in consolidated net income of S Company = Controlling interest percentage * Net income of S Company = 80% * $95,700 = $76,560
Noncontrolling interest in consolidated net income of S Company = Noncontrolling interest percentage * Net income of S Company = 20% * $95,700 = $19,140
Therefore, for the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140
Hanna, Marnie, and Jessa have operated a partnership as filmmakers for a number of years. At the end of the year, before any allocation of profits, the partners have the following capital account balances:
Hanna $25.000
Marnie 15.000
Jessa 10.000
The partnership agreement states that profits should be allocated in proportion to the capital account balances. If the partnership earns $600,000 in the current year, how much of the profit will be allocated to Marnie?
a. $600,000.
b. $180,000.
c. $200,000.
d. $150,000.
Answer: b. $180,000
Explanation:
Profit should be allocated according to capital account balances. Marnie's capital account proportion is:
= 15,000 / (25,000 + 15,000 + 10,000)
= 15,000 / 50,000
= 30%
If the profit is $600,000, Marnie's share is:
= 30% * 600,000
= $180,000
What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000
Answer: 28.6%
Explanation:
The return on the total asset of a firm will be calculated as the net income divided by the total asset and this will be:
=Net income / Total assets
=50,000/175,000
=28.6%
Therefore, return on total asset is 28.6%
Your boss wants to set safety stock levels correctly to ensure an 87.9% service level. She needs your answer right away. What should the safety stock level be given that you know:
Average replenishment cycle is 10 days
Standard deviation of daily demand is 12 units
Average daily demand is 100 units
Standard deviation of the replenishment cycle is 3 days
a. 57 units
b. 188 units
c. 302 units
d. 354 units
e. 1,000 units
In the 2008 global financial crisis, many investors considered the US economy a safe place to move their assets What is the predicted impact of this inflow of financial capital to the US, which is a large, open economy, on the US interest rate and the US exchange rate, holding other factors constant Illustrate your answer graphically and explain in words.
Answer:
Good for US interest rate and the US exchange rate.
Explanation:
The predicted impact of this inflow of financial capital to the United states of America is good for the economy as well as for US interest rate and the US exchange rate when the movement of assets occur to the United states of America. The economy of the United states of America gets to be better due to this action of investors. This 2008 global financial crisis greatly damaged the economy of United states of America so this action bring some betterment in the economy.
Dotsero Technology, Inc. has a job-order costing system. The company uses predetermined overhead rates Iin apply manufacturing overhead cost to individual jobs. The predetermined overhead rate in department A is based on machine-hours, and the rate in department B is based on direct material cost. At the beginning of the most recent year, the company's management made the following estimates for the year:Department A Department BMachine-hours............................ 70,000 19,000Direct labor-hours........................ 30,000 60,000Direct materials cost..................... 195,000 282,000Direct labor cost.......................... 260,000 520,000Manufacturing overhead cost............ 420,000 705,000Compute the predeterminded overhead rates for department A and department B.
Answer:
Dept. A Dept. B
Machine hours 70,000
Direct Material Cost 282,000
Manufacturing overhead 420,000 705,000
Predetermined OH rate 420,000 / 70,000 705,000/282,000
= 6.00 per MH = 2.50 per dollar of DM cost
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Answer:
$2
$3.50
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$6.75 - $4.75 = $2
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$4.75 - $1.25 = $3.5
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 3,800 Salaries expense 1,400 Accounts payable 1,800 Retained earnings 4,700 Utilities expense 1,200 Supplies 12,200 Service revenue 7,700 Common stock 4,400 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Cowboy Law Firm
Income Statement for the year ended 31 December
Service revenue $7,700
Less Expenses :
Salaries expense $1,400
Utilities expense $1,200 ($2,600)
Net Income $5,100
Explanation:
It is important to remember that the income statement accounts for Income and expense items only.
McBride's Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It can sell each product at the split-off point or process it further in relatively similar processes, so management has decided that the most appropriate method for allocating joint costs is the market value at split-off point. One gallon of cream sells for $15, while one gallon of milk sells for $4. How much of the joint cost is allocated to cream
Answer:
$560
Explanation:
Calculation to determine How much of the joint cost is allocated to cream
Units Selling price Sales value Percentage of sales value Allocated cost
Cream (200*15=3,000) (3,000/5,400 = 56%)
(1,000 x 56% = $560)
Skimmed milk (600*4=2,400) (2,400/5,400 = 44%) (1,000 x 44% = $440)
Total $5,400 100% $1,000
($3,000+$2,400=$5,400)
(56%+44%=100%)
($560+$440=$1,00)
Therefore the joint cost allocated to CREAM is $560
If five different errands are allocated to five time slots, 12-1pm,1-2pm,2-3pm,3-4pm and 4-5pm, how many distinct schedules are possible
Answer:
120
Explanation:
There are 5 different errands and five different time slots for the errands. We are then required to find in how many ways these errands would be arranged in the time slots schedules.
The number of ways the errands can be arranged in the time slot is 5!
5! = 1×2×3×4×5= 120
Therefore there are 120 different ways to arrange the errands in the times slots schedules(5) available.
The CVP income statement Group of answer choices discloses contribution margin in the body of the statement. is distributed internally and externally. classifies costs by functions. will reflect a different net income than the traditional income statement.
Answer: discloses contribution margin in the body of the statement.
Explanation:
The Cost Volume Profit (CVP) income statement is made to better show the influence of variable costs and fixed costs on income. It as well shows the effects that changing costs and production volume can have on the income.
Although it shows the same income as a traditional income statement, the format is different in that the contribution margin is included in the statement and the costs and revenue per unit are shown as well.
Jack and Jill both love hot coffee. Jack likes to keep his coffee hot during the day while Jill doesn't mind drinking room temperature coffee. Jack is willing to spend more money on a thermos than Jill is willing to spend. This example illustrates the following major limitation of employing the Economic Value Creation framework because:________
a. accounting data focus mainly on tangible assets, which are no longer the most important.
b. accounting data are historical and thus backward-looking.
c. determining the value of a good service through the perspective of a consumers is not a simple task because consumers have different spending habits
d. overall macroeconomic factors such as the unemployment rate, and interest and exchange rates all have a direct bearing on stock prices
Answer:
C
Explanation:
May 1 Prepared a company check for $450 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $160 for janitorial services.
b. Paid $120 for miscellaneous expenses.
c. Paid postage expenses of $80.
d. Paid $41 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $63 remaining in the petty cash box.
May 16 Prepared a company check for $150 to increase the fund to $600.
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $205.
g. Reimbursed the office manager for business mileage, $103.
h. Paid $34 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $120, leaving a total of $480.
Required:
Journalize the entries.
Answer:
Journal Entries:
May 1 Debit Petty Cash $450
Credit Cash $450
To establish the petty cash fund.
May 15 Debit Petty Cash $387
Credit Cash $387
To replenish the fund for expenses.
a. Debit Janitorial Expenses $160
Credit Petty Cash $160
b. Debit Miscellaneous expenses $120
Credit Petty Cash $120
c. Debit Postage expenses $80
Credit Petty Cash $80
d. Debit Advertisement $41
Credit Petty Cash $41
e. Debit Petty Cash $14
Credit Cash overage $14
To recognize the cash overage.
May 16 Debit Petty Cash $150
Credit Cash $150
To increase the petty cash fund to $600.
May 31 Debit Petty Cash $360
Credit Cash $360
To replenish the fund for expenses.
f. Debit Postage expenses $205
Credit Petty Cash $205
g. Debit Transport expense $103
Credit Petty Cash $103
h. Debit Freight-out $34
Credit Petty Cash $34
Debit Shortage $18
Credit Petty Cash $18
May 31 Debit Cash $120
Credit Petty Cash $120
To reduce the petty cash fund to $480.
Explanation:
a) Data and Analysis:
May 1 Petty Cash $450 Cash $450
May 15 Petty Cash $387 Cash $387
a. Janitorial Expenses $160 Petty Cash $160
b. Miscellaneous expenses $120 Petty Cash $120
c. Postage expenses $80 Petty Cash $80
d. Advertisement $41 Petty Cash $41
e. Petty Cash $14 Cash overage $14
May 16 Petty Cash $150 Cash $150
May 31 Petty Cash $360 Cash $360
f. Postage expenses $205 Petty Cash $205
g. Transport expense $103 Petty Cash $103
h. Freight-out $34 Petty Cash $34
Shortage $18 Petty Cash $18
May 31 Cash $120 Petty Cash $120
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $85,800
Depreciation expense 12,500
Gain on sale of land 8,000
Increase in merchandise inventory 2,550
Increase in accounts payable 6,650
a. $37,400.
b. $13,150.
c. $94,400.
d. $14,150.
e. $29,400.
Answer:
c. $94,400
Explanation:
Net cash provided or used by operating activities is computed as see below;
Net cash provided or used by operating activities = Net income + Depreciation expense - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable
Net cash provided or used by operating activities = $85,800 + $12,500 - $8,000 - $2,550 + $6,650
Net cash provided or used by operating activities = $94,400
Ramakrishnan Inc. reported 2018 net income of $20 million and depreciation of $1,500,000. The top part of Ramakrishnan, Inc.'s 2017 and 2018 balance sheets is listed as follows (in millions of dollars).
2018 2017 2018 2017
Current assets: Current liabilities:
Cash and marketable securities $25 $26 Accrued wages and taxes $43 $35
Accounts receivable 98 92 Accounts payable 69 60
Inventory 170 144 Notes payable 60 55
Total $293 $262 Total $172 $150
Calculate the 2018 net cash flow from operating activities for Ramakrishnan, Inc.
Answer:
$6,500,000
Explanation:
Calculation to determine the 2018 net cash flow from operating activities for Ramakrishnan, Inc.
Cash Flows from Operating Activities
Net income $ 20,000,000
Additions (sources of cash):
Depreciation $1,500,000
Increase in accrued wages and taxes $8,000,000
($43,000,000-$35,000,000)
Increase in accounts payable $9,000,000
($69,000,000-$60,000,000)
Less Increase in accounts receivable ($6,000,000)
($98,000,000-$92,000,000)
Less Increase in inventory ($26,000,000)
($170,000,000-$144,000,000)
Net cash flow from operating activities: $ $6,500,000
Therefore the 2018 net cash flow from operating activities for Ramakrishnan, Inc is $6,500,000
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $7.00. In year two, the price of the same basket is $8.00. From year one to year two, there isinflation at an annual rate of_____________ . In year one, $42.00 will buy baskets, and in year two, $42.00 will buy baskets. This example illustrates that, as the price level rises, the value of money___________ .
Answer:
14.3%
6 baskets
5.25
Falls
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Costs of inflation
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
Annual rate of inflation = (0.08/0.07) - 1 = 0.143 = 14.3%
Baskets that can be bought in year 1 = 42 / 7 = 6
Baskets that can be bought in year 2 = 42 / 8 = 5.25
$42 buys less basket of goods in year 2. It means that the value of money has declined
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is: Product Unit Sales Price Variable Cost Per Unit Regular $ 20 $ 8 Ultra 24 4 Multiple Choice
Answer:
$12
$20
Explanation:
contribution margin = price - variable cost
20 - 8= 12
24 - 4 = 20