How does total variable cost respond when volume increases?
What will be an ideal response?
Answers will vary.
Total variable cost would increase in direct proportion to volume. A 5% increase in volume would mean a 5% increase in total variable costs.
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The difference between a department's gross profit and its operating expenses is known as the departmental direct operating profit
a. True b. False Indicate whether the statement is true or false
McGraw Inc manufactures 12,000 units of a part used in its production to manufacture guitars. The annual production activities related to this part are as follows: Direct materials $24,000 Direct labor 60,000 Variable overhead 54,000 Fixed overhead 84,000 Hill Inc has offered to sell 12,000 units of the same part to McGraw for $22 per unit. If McGraw were to accept the offer, some of the
facilities presently used to manufacture the part could be rented to a third party at an annual rental of $18,000. Moreover, $4 per unit of the fixed overhead applied to the part would be totally eliminated. What should McGraw's decision be, and what is the total cost savings that would result? A) Make, $60,000 B) Buy, $60,000 C) Make, $78,000 D) Buy, $78,000
The ____________________________compares the last modification date and time of objects to determine if invalidation occurs.
Fill in the blank(s) with the appropriate word(s).
The EU has been unsuccessful at harmonizing customs and tax formalities within their borders.
Answer the following statement true (T) or false (F)