Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
Answer:
beginning inventory = 3,200 units
units produced during the year = 23,000
units sold during the year = 21,000
ending inventory = 23,000 + 3,200 - 21,000 = 5,200 units
variable costs per unit:
fixed costs:
A) Variable costing calculates COGS using only variable costs since fixed costs are considered period costs and are not carried over.
carrying value of initial inventory:
carrying value of ending inventory:
using variable costing = $415 x 5,200 units = $2,158,000
using absorption costing = ($415 + $75.87) x 5,200 = $2,552,524
B) net profit using variable costing:
total revenue = 21,000 x $620 = $13,020,000
- COGS = 21,000 x $415 = $8,715,000
gross contribution margin = $4,305,000
- total fixed costs = $1,745,000
net income = $2,560,000
C) net profit using absorption costing:
first we need to determine COGS = carrying value beginning inventory + (17,800 x variable manufacturing costs per unit) + (17,800 x fixed manufacturing costs per unit) = $1,570,784 + (17,800 x $355) + (17,800 x $10.6522) = $1,570,784 + $6,319,000 + $189,609 = $8,079,393
total revenue = $13,020,000
- COGS = $8,079,393
gross margin = $4,940,607
- variable SG&A = 17,800 x $60 = $1,068,000
- fixed SG&A = 17,800 x ($1,500,000 / 23,000) = $1,160,870
net income = $2,711,737
Answer:
1/2 ton of wheat per ton of corn
Explanation:
Home produces 0.5 ton of corn or 1 ton of wheat with a day of labor:
Opportunity cost of producing a ton of corn = (1 ÷ 0.5)
= 2 tons of wheat
Opportunity cost of producing a ton of Wheat = (0.5 ÷ 1)
= 0.5 tons of corn
Foreign produces 1 ton of corn and 0.5 ton of wheat:
Opportunity cost of producing a ton of corn = (0.5 ÷ 1)
= 0.5 tons of wheat
Opportunity cost of producing a ton of Wheat = (1 ÷ 0.5)
= 2 tons of corn
Therefore,
Foreign has a comparative advantage in producing corn because of lower opportunity cost and Home has a comparative advantage in producing wheat.
So, home country will be importing corn from foreign. Hence, if the international price will be 0.5 tons of wheat per ton of corn then the home country will get the largest gains from the trade because it is willing to sacrifice 2 tons of wheat for a ton of corn.
The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.
Answer:
The Micro Islands have a comparative advantage in producing botanical soaps.
Explanation:
Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.
The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.
While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.
Answer:
It is better to buy an energy efficient model for $ 1700.
Explanation:
It is better to buy an energy efficient model for $ 1700 because at the end of five years its costs will be less than $ 1500. It saves $ 45 each year and that would save $ 45*5 = $ 225 at the end of five years. That would result in low costs as $ 1700- $ 225= $ 1475 which is less than $ 1500.
Buying $1500 is not a smart choice because then it would add up to expenses . Expenses for $ 45 each year would result in $225 in five years that would add up to be $ 1725 which is higher than $ 1700.
b) false
Learning curves are indeed useful for measuring work improvement in repetitive, simple tasks. They represent worker improvement in efficiency and reduction in mistakes over time, as these tasks are completed on a repetitive basis.
The statement, 'Learning curves are useful for measuring work improvement for repetitive, simple jobs requiring short times to complete', is true. A learning curve is a concept that represents improvement in efficiency of production as workers increase in skill through repetition of tasks. This concept is often used in business and economics to measure work improvement, particularly for jobs that are simple and repetitive in nature. For instance, when an assembly line worker repeats the same task over and over, they typically become faster and make fewer mistakes over time, thus increasing productivity.
#SPJ12
Answer:
$2.275
Explanation:
Calculation for the amount of the dividend to be paid in one year
Using this formula
D1 =Dividend yield* Stock Amount
Let plug in the formula
D1= .035($65)
D1= $2.275
Therefore the amount of the dividend to be paid in one year will be $2.275