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09.04.2021 •
Business
Winston Co. had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 246,000 $ 430,000 $ 676,000 Variable Costs 188,000 215,000 403,000 Contribution Margin $ 58,000 $ 215,000 $ 273,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 8,000 $ 107,000 $ 115,000 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 260,000 $ 450,000 $ 710,000 Variable Costs 143,000 180,000 323,000 Contribution Margin $ 117,000 $ 270,000 $ 387,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 67,000 $ 162,000 $ 229,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The weighted-average budgeted contribution margin per unit is:
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Ответ:
Option B It presents variable cost as a slope coefficient
Explanation:
The reason is that the total cost function is:
Y = a + bx
The total cost in this case is Y, a is fixed cost as an intercept, b is variable cost represented as an slope and coefficient and x is level of activity which is independent of Y.
So the right answer is option B.