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zairamori14
25.12.2019 •
Business
Gary corporation manufactures a single product. the selling price is $104 per unit, and variable costs amount to $78 per unit. the fixed costs are $36,000 per month (round any units to the next highest full unit). a. what is the contribution margin per unit
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Ответ:
$26 per unit
Explanation:
Contribution margin per unit: It is the difference between the selling price and the variable cost per unit.
In mathematically,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $104 - $78
= $26 per unit
All other information that is given is not relevant as the fixed cost is not taken for computing the contribution margin per unit because it is taken for computing the break even point and margin of safety. Hence, ignored it
Ответ:
(a) It is a game because each decision has an attached payoff with it.
(b) It is a decision because Frugal Fred have to select from two given options. Since yes or no decision to be made.
(c) Here, payoff is attach with the decision. Therefore, it is a game.
(d) The decision to pay fee to Amazon or iTunes has an attached payoff with it, so it is a game.
(e) It is a decision because no other alternative attached with the decision. The tariff will be imposed by the china irrespective of the America's reaction over this.