Malaka Oyster Company has increased its variable costs per kilogram of oysters harvested. However, its fixed costs

Question:

Malaka Oyster Company has increased its variable costs per kilogram of oysters harvested. However, its fixed costs decreased as a result of these changes. Why might this happen and how will these changes affect the firm's break-even sales volume?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

See More Books

Question Posted: Nov 01, 2017 06:20 AM

See More Questions

Blue Ribbon Fisheries is a fishing company located on the Canadian Pacific coast. It has three divisions: a. Harvesting-operates a fleet of 20 trawling vessels. b. Processing-processes the raw fish...
Truong Trucking Co. Ltd operates a freight service and is planning the next years operation. The companys assets are estimated to be $30 400 000 at the beginning of the financial year and $30 700 000...
McCann Company has two divisions, Division C and Division D. Division C manufactures Part C82 and sells it to Division D, and also sells the same part to the outside market for $50 per unit. Division...
The two roots of a quadratic equation ax 2 + bx + c = 0 can be obtained using the following formula: b 2 - 4ac is called the discriminant of the quadratic equation. If it is positive, the equation...
Diatomic chain Consider the normal modes of a linear chain in which the force constants between nearest-neighbor atoms are alternately C and 10C. Let the masses he equal, and let the nearest-neighbor...
Determine and accurately plot, on the same set of axes, the group delay and the phase delay for the systems with unit impulse responses: (a) h 1 (t) = 3e -5t u(t) (b) h 2 (t) = 5e -3t u (t) - 2e -5t...
An alternative to using $d=1 / u$ in a binomial model is to use the available degree of freedom by setting $p=1 / 2$. (a) Let $p=1 / 2$, and find the values of $u$ and $d$ that satisfy the...
Given the following production plan, use a (a) Chase production strategy (b) Level production strategy to compute the monthly production, ending inventory / (backlog) and workforce levels. A worker...
Command Sales Cost of goods sold Wu Company Income Statement For the Year Ended December 31, 2022 Gross margin Operating expenses (including depreciation expense of $46,800) Income from operations...
An company has sales of $50 million growing at 25% YoY with EBITDA margins at 20%. It secures a JV in Year 3 with additional business of $20 million at EBITDA of 12.5% which linearly scales up to $50...
AudioFriend manufactures audio speakers for tablet computers. The following data relate to the period just ended, when the company produced and sold 42 000 speaker sets: Sales...
Commercial Crates Pty Ltd manufactures two types of crates for transporting fresh fruit and vegetables Timber and Polystyrene. The budgeted data for next year are as follows: Facility costs for the...
Figure 21-19 shows the intensity as a function of energy of x-rays produced from an energy-dispersive analysis of radiation emitted from a specimen in a scanning electron microscope. Determine the...
In 2019, 163.5 million workers were in the U.S. labor force, of which 6.0 million were unemployed. In view of these facts, how can economists say that labor is a scarce resource?
A few months after an Argentinian food manufacturing company had launched a number of product categories in Uruguay, it decided that the next launch would be cake and dessert mixes. The sale of these...
In 2018 the United States had a population of 327 million, of which 68 million were either under 16 years of age or institutionalized. Approximately 162 million people were either employed or...
What is investment? How is it related to national saving?
List and discuss factors that help explain why public sector employment rose faster than private sector employment between 1950 and 2018. At what levels of government has public sector employment...
Wenyou Company at December 31 has (amounts in thousands) cash 20,000, non-cash assets 100,000, liabilities 55,000, and the following capital balances: Wen 45,000 and You 20,000. The firm is...
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
Define a cost management system and give its three purposes.
Cost management systems have three primary purposes. For each of the decisions listed next, indicate the purpose of the CMS being applied. a. A production manager wants to know the cost of performing...
Cost management systems have three primary purposes. For each of the decisions listed next, indicate the purpose of the CMS being applied. a. A production manager wants to know the cost of performing...
Explain possible advantages and disadvantages of PSL's current international trading strategy (subsidiary in China, export & import and online presence).
In November 2020 you entered into four May 2021 long futures contracts for crude oil (1,000 barrels per contract) for $65.00 per barrel. If the futures price was $70.00 per barrel on December 31,...
4) Champagne, Inc., had revenues of $13 million, cash operating expenses of $9 million, and depreciation and amortization of $2 million during 2008. The firm purchased $650,000 of equipment during...

Malaka Oyster Company has increased its variable costs per kilogram of oysters harvested. However, its fixed costs

Question:

Step by Step Answer:

An increase in variable costs per unit can result in decreased fixed costs if the behaviour of a cos...View the full answer

Management Accounting

Students also viewed these Advanced Accounting questions