Answer:
The Blowing's sand net income will increase by $45,000 by saving of direct fixed costs.
Explanation:
Fixed costs are costs which remains unchanged irrespective of the level of activity produced by Blowing Sand's, means the Blowing Sand's will have to bear that cost whether it eliminate the Drafty product line or not. example factory rent, building depreciation etc.
Direct Fixed costs are those which only incurred when the units are produced so that will only incur costs when production is made.
So the elimination of Drafty product line will save $45,000 of direct fixed costs and the remaining $78,000 will be redistributed to other remaining product lines which will not impact the net income.
4500 + 750 + 850 + 6250 = 13,350 totally amount
I would say that since the debt to equity ratio is the total liabilities divided by the total stockholder's equity is then $16,492,000/$12,400,000= 1.33. The debt to equity ratio is an indication of the amount of debt being used by a company to provide money to its assets relative to the amount of shareholder's equity.
Can charge a premium price for its items or goods and also for administrations charges usually termed as services .
Since clients need to see items as being justified regardless of the higher sticker price, a business must endeavor to make an esteem observation. Alongside making an excellent item, proprietors ought to guarantee their showcasing endeavors, the item's bundling and the store's stylistic theme all join to help the superior cost.
Answer:
For the business to make profits
Explanation:
Marginals revenue is the additional income realized from the sale of an extra unit. It is the revenue that a firm will gain by selling one more unit of a product or service.
Marginal cost is the expense incurred in the production of one more unit of a product. A business compares marginal revenue to marginal cost to decide if it will cease or continue with production and selling activities.
For a business to continue selling and make profits, marginal revenue must be greater than the marginal cost. In other words, the revenue realized by selling one extra unit must exceed the cost of producing that item. Selling one more unit when the marginal cost is more than the marginal revenue will result in a loss.
If the marginal revenue from a computer is $40 and the marginal cost is $50, selling on extra computer results in a loss of $10. But if the marginal revenue from the same computer is $60, the sale on one more unit will be a gain of $10.
