Ben is assigned by his employer to improve an ultrasonic range-finding device. While working on the improvement, he recognizes t

Answer:

The variable cost per unit sold amounts to $11.50

Explanation:

The computation for the variable cost per unit sold is provided below:

= Direct materials per unit + Direct labor per unit + Variable manufacturing overhead per unit + Sales commissions per unit +  Variable administrative expenses per unit

= $4.85 + $3.35 + $1.35 + $1.50 + $0.45

= $11.50

Simply put, we summed up the respective per unit costs attributable to variable expenses per unit

Here are some strategies that Apple should implement to guarantee widespread use of Apple Pay -

i) Encourage more merchants to accept it by educating them and providing devices at low costs

ii) Expand support across various platforms so that users of different devices can access Apple Pay services

iii) Boost visibility by collaborating with additional e-commerce platforms and applications

Response:

The avoidable costs linked to the segment amount to $754,000

Detailed explanation:

The costs tied to the segment under consideration for elimination are as follows:

- Advertising costs = $140,000

- Allocation of costs at the company level = $130,000

- Loss incurred from unsold building (*): $60,000

- Maintenance costs on equipment = $112,000

- Real estate taxes on the building = $12,000

The cumulative cost amounts to $754,000

(*) The earnings from the sold building (book value) = Market value of the building $160,000 - Book value of the building $100,000 = $60,000