If there is a drop in sales price without relevant drop in variable cost as well as fixed cost then it will cause breakeven point to rise because now single unit of product is earning less contribution towards fixed assets.
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
it is the FIXED and VARIABLE it is the FIXED and VARIABLE expenses only not selling expenses.JOKE.this is a GUESS.haha
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
The contribution margin ratio increases when the selling price per unit rises without a proportional increase in variable costs, or when variable costs per unit decrease while the selling price remains constant. Essentially, any scenario that increases the difference between sales revenue and variable costs will enhance the contribution margin ratio. Additionally, a shift in sales mix towards higher-margin products can also lead to an increase in the overall contribution margin ratio.
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
it is the FIXED and VARIABLE it is the FIXED and VARIABLE expenses only not selling expenses.JOKE.this is a GUESS.haha
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
Fixed cost / (selling price - Variable cost per unit) --> Fixed cost ----------------------------------------------- (Selling Price - Variable Cost Per Unit)
1949 Shillings are currently selling between £4 and £20 on e bay.
Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.
No. They are not.they are part of period costs.
The contribution margin ratio increases when the selling price per unit rises without a proportional increase in variable costs, or when variable costs per unit decrease while the selling price remains constant. Essentially, any scenario that increases the difference between sales revenue and variable costs will enhance the contribution margin ratio. Additionally, a shift in sales mix towards higher-margin products can also lead to an increase in the overall contribution margin ratio.
Firm should keep selling units at price which atleast cover the variable cost but if it is seems that it is not able to cover even the variable cost then it should immediately do something to either reduce variable cost or increase selling price.
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.