PRIN OF ACCT II Section 069 Spring Semester 20... 888 oration AssessmentsGrades

Question

PRIN OF ACCT II Section 069 Spring Semester 20... 888 oration AssessmentsGrades Classlist Course Tools Time Left 1:4054 Lauren Parker: Attempt 1 Which of the following is not a possible explanation of why variable costs often behave in a curvilinear fashion? s saved Excess material spoilage caused by worker fatigue Overtime pay The ability to use specialized labor Lack of availability of quantity discounts Question 18 (2 points) 12 A cost that changes in total in the way the activity index changes is a variable cost. product cost period cost indirect cost 15 18 21 Question 19(2 points 24 Your company is considering the production and sale of a new product. The selling price of the new product is $35 per unit, the variable costs are $20 per unit, and the total monthly fixed costs are $45,000 How many units of the new product will your company need to sell in a month to have net income of $15.000 on the new product? ion 16 Saved

Explanation / Answer

1.excess material spoilage caused by worker fatigue.

2. variable cost

3. BEP = (fixed cost + Desired profit)/(Sales price per unit - variable cost per unit)

= (45000+15000)/(35-20)

= 60000/15

= 4000 units

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