Answer:
Variable, $85; absorption, $105.
Explanation:
Variable costing $85
Absorption costing $105=(85+20)
Answer:
D. higher profits will induce expanded production.
Explanation:
If the price of a good increases and the cost remains the same ,profits earned would increase.
For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.
I hope my answer helps you.
Answer:
Fixed Cost = $10,000
Variable Costs = $90,000
Explanation:
Variable Cost per unit = $72,000 ÷ 12,000
= $6
Variable Costs at 15,000 units = $6 x 15,000
= $90,000
Fixed Cost (given) = $10,000
Answer:
Part a : If JumpStart paid cash
Office Supplies $870 (debit)
Cash $870 (credit)
Part b : If JumpStart placed it on account
Office Supplies $870 (debit)
Account Payable $870 (credit)
Part c : If JumpStart pays the amount due
Account Payable $870 (debit)
Cash $870 (credit)
Explanation:
Part a : If JumpStart paid cash
Recognise an expense for Office Supplies and reduce the assets of cash to reflect outflow of economic benefits in form of cash
Part b : If JumpStart placed it on account
Recognize an expense for Office Supplies and also recognise a Liability - Accounts Payable to reflect a present obligation created by JumpStart to its Supplier
Part c : If JumpStart pays the amount due
Derecognise the Liability - Accounts receivable since the liability has been settled and reduce the assets of cash to reflect outflow of economic benefits in form of cash due to settlement of Account
Answer:
$1,275,000
Explanation:
The computation of the contribution margin is shown below:
As we know that
Contribution margin = Sales - variable cost
or
Selling price per unit - variable cost per unit
And, the direct material per unit, direct labor per unit, and the Variable overhead per unit are variable cost
So, if 50,000 units are sold, the contribution margin per unit is
= 50,000 × ($33 - $1.50 - $2.50 - $3.50)
= $1,275,000
