If the price per unit decreases because of competition but the cost structure remains the same
Increase in the price at which you SELL the good if the cost price at which you BOUGHT/PRODUCED the good remains the same or Decreased Cost Price with a Stable Selling Price. Basically anything that would result in the difference between the Selling Price and Cost Price increasing favourably.
Variable cost per unit remains same with level of production and no change in change in level of production.
To maintain the gross margin percentage when the unit cost increases from 1.00 to 1.25, you need to adjust the unit selling price accordingly. The original gross margin percentage is calculated as (Selling Price - Cost) / Selling Price. With the new cost, you would need to increase the selling price to ensure the gross margin remains the same. Specifically, you can calculate the new selling price needed to achieve the desired gross margin percentage based on the updated cost.
Selling price less profit equals cost price. The markup is the profit plus cost price.
Unit cost decreases
If the price per unit decreases because of competition but the cost structure remains the same
Yes breakeven point will rise because contribution margin per unit reduces that's why more units require to recover fixed cost.
it means the cost stays the same
Increase in the price at which you SELL the good if the cost price at which you BOUGHT/PRODUCED the good remains the same or Decreased Cost Price with a Stable Selling Price. Basically anything that would result in the difference between the Selling Price and Cost Price increasing favourably.
Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.
The relationship between constant marginal cost and the overall cost structure of a business is that when the marginal cost remains constant, it means that the cost of producing each additional unit of output does not change. This can lead to a more predictable and stable overall cost structure for the business, making it easier to plan and manage expenses.
A remains constant and B decreases. profit decrease
The cotton gin made labor easy for people or slaves, so the cost decreases.
Variable cost per unit remains same with level of production and no change in change in level of production.
The eventual cost of the Grand Coulee Dam was about 300 million dollars. It still remains the largest concrete structure ever built.
By doing a cost accounting.. Take the ingardients,manpower,time,infra invested in the process.Add all the costs and add your margin.That is the price!
Markup refers to the amount added to the cost price of a product to determine its selling price, often expressed as a percentage of the cost. In contrast, markdown is the reduction in the selling price of a product, typically used to encourage sales or clear inventory. While markup increases the price above cost, markdown decreases it below the original selling price. Both strategies are essential in retail pricing and inventory management.