Duke's Candy Company sets its advertising budget based on what the company has left to spend, after other expenses. Which advertising budgeting method does the company likely follow? Percentage of Sales Method Brand Equity Method Competitive Parity Method Objective-and-Task Method Affordable Method
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Ответ:
Average fixed cost= $1.43
Explanation:
Giving the following information:
Production costs:
Rent= $5,000
Direct labor= $2,500
Direct material= $5,000
Usually, the direct labor cost is variable. In some conditions, it is a fixed cost. We will consider it as a variable cost.
Total fixed cost= 5,000
Average fixed cost= 5,000/3,500
Average fixed cost= $1.43