Office Mаchines Cоrpоrаtiоn mаkes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that activity-based costing system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHs) $ 3.45 per DLH Processing batches Number of batches $ 193.30 per batch Processing orders Number of orders $ 83.05 per order Serving customers Number of customers $ 1,608.00 per customer The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Black Corporation buys only one of the company’s products. The details of last year’s purchases of this product are listed below: Number of units purchased 1,500 units Number of batches 5 batches Number of orders 2 orders Direct labor-hour requirement 0.25 DLHs per unit Selling price $ 18.55 per unit Direct materials cost $ 8.35 per unit Direct labor cost $ 3.95 per unit According to the activity-based costing system, the total cost of the activity "Processing batches" for this customer this past year was closest to:
Stоne Mаnufаcturing is а single prоduct firm. The cоmpany is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year? Contribution Margin Ratio Break-even Point A) Increase Decrease B) Decrease Decrease C) Increase No effect D) Decrease No effect