What happens to variable costs when a firm shuts down?
What happens to variable costs when a firm shuts down?
The answer is that shutting down can reduce variable costs to zero, but in the short run, the firm has already paid for fixed costs. As a result, if the firm produces a quantity of zero, it would still make losses because it would still need to pay for its fixed costs. So, when a firm is experiencing losses,…
How much does raw materials cost per unit?
The March 31 raw materials inventory is 4,580 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,700 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
How much does it cost before sales tax?
Total Cost/Price including ST: $105.00 In case of an item with a final price of $112 that includes a sales tax rate of 7% this application will return these results: Sales tax: $7.33 Cost/Price before ST: $104.67 Total Cost/Price including ST: $112.00
What is the overhead rate for Trico company?
Trico Company set the following standard unit costs for its single product. Direct materials (23 Ibs. @ $4.40 per Ib.) The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 69,000 units per quarter.
How much does a RCP LF unit cost?
RCP LF $148.00 54″ RCP LF $200.00 60″ RCP LF $240.00 66″ RCP LF $270.00 72″ RCP LF $300.00 8″ HDPE LF $25.00 10″ HDPE LF $28.00. UNIT PRICE LIST Revised 05/19 Appendix 26 – Unit Price List Page 2. ITEM UNIT UNIT PRICE 12″ HDPE LF $30.00 15″ HDPE LF $32.00 18″.
How are finance charges calculated in a billing cycle?
First two approaches either consider the ending balance or the previous balance. These two are the simplest methods and they take account of the amount owed at the end/beginning of the billing cycle. Daily balance approach that means the lender will sum your finance charge for each day of the billing cycle.
How to calculate periodic rate of finance charge?
The rule says that you first need to calculate the periodic rate by dividing the nominal rate by the number of billing cycles in the year. Then the balance gets multiplied by the period rate in order to have the corresponding amount of the finance charge.
Is there a limit to the finance charge?
Regarding the regulations across the countries it should be mentioned that there are different levels on the maximum level allowed, however extreme practices from lender’s side occur as the limit of the finance charge can go up to 25% per year or even higher in some cases.
