Contribution margin equals fixed costs plus
A) cost of goods sold.
B) sales.
C) variable costs.
D) operating income.
D
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What options are available to a firm that has a product in the decline stage of the product life cycle? Briefly discuss each option
What will be an ideal response?
The component of the central processing unit (CPU) that guides the operations of a computer by directing the sequence of operations, interpreting coded instructions, and sending needed data to other units is the ____________________ unit.
Fill in the blank(s) with the appropriate word(s).
Goal setting
A. provides a real life demonstration to get the message across. B. provides learning through repetition. C. sets a road map for the training program, its objectives, and its learning points. D. sets a road map for breaking down tasks to facilitate modelling.
Division G makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers$87Variable cost per unit$49Total fixed costs$40,000Capacity in units 4,000?Division H of the same company would like to use the part manufactured by Division G in one of its products. Division H currently purchases a similar part made by an outside company for $83 per unit and would substitute the part made by Division G. Division H requires 500 units of the part each period. Division G has ample capacity to produce the units for Division H without any increase in fixed costs and without cutting into sales to outside customers. If Division G sells to Division H rather than to outside customers, the variable cost be unit would be $2
lower. What should be the lowest acceptable transfer price from the perspective of Division G? A. $57 B. $47 C. $83 D. $87