HE FOLLOWING INFORMATION APPLIES TO QUESTIONS 15 to 17. Martha Manufacturing produces a single product...
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HE FOLLOWING INFORMATION APPLIES TO QUESTIONS 15 to 17.
Martha Manufacturing produces a single product that sells for $45. Variable costs per unit equal $27. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 5,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.
15. What is the percentage sensitivity of the variable cost of the product?
a.0.133 %
b.1.33%
c.13.33%
d.Cannot be computed
HE FOLLOWING INFORMATION APPLIES TO QUESTIONS 15 to 17.
Martha Manufacturing produces a single product that sells for $45. Variable costs per unit equal $27. The company expects total fixed costs to be $72,000 for the next month at the projected sales level of 5,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately.
15. What is the percentage sensitivity of the variable cost of the product?
a.0.133 %
b.1.33%
c.13.33%
d.Cannot be computed
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