Answer:
54.55%
Explanation:
The purchasing price is $55
Price has increased to $85.
The monetary increase = $85 - $55 = $30
As a percentage , the increase will be
=$30/$55 x 100
=0.545454 x 100
=54.5454%
=54.55%
Answer:
Therefore, the change in total contribution margin is equal to change in net operating income, so there is no change in fixed expenses and will not be affected.
Explanation:
The computation as per given question is given below:-
Variable cost per unit
= $48 + $65
= $113
Contribution margin per unit
= $240 - $113
= $127
Unit Monthly sales
= 1,500 + 240
= 1,740
Total contribution margin
= 1,740 × $127
= $220,980
Total contribution margin
= 1,500 × $192
= $288,000
So, change in total contribution margin and net operating income
= $288,000 - $220,980
= $67,020
Therefore, the change in total contribution margin is equal to change in net operating income, so there is no change in fixed expenses and will not be affected.
Answer: True
Explanation:
Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.
This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.