Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations

Answers

Answer 1
Answer:

Answer:

a. Contribution margin ratio = Contribution per unit/selling price

                                              = $18/$$5

                                              = 0.4 = 40%

b.    Contribution per unit = Selling price - Variable cost per unit

                                       = $45 - $27

                                       = $18

c. Income from operations                         $

Total contribution ($18 x 160,000 units)  2,880,000

Less: Fixed cost                                            975,000

Income from operations                           1,905,000

Explanation:

Contribution margin ratio is the ratio of contribution per unit to selling price

Contribution per unit is the excess of selling price over variable cost per unit

Income from operation is the excess of total contribution over fixed cost


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Social surplus is the​ ____________. A. total value from trade in a markettotal value from trade in a market. B. difference between the amount that buyers actually pay and what they wish to pay. C. excess of aggregate demand over aggregate supply. D. difference between consumer surplus and producer surplusdifference between consumer surplus and producer surplus.

Answers

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

Final answer:

Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.

Explanation:

The question asked here is: Social surplus is the​ ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.

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Sandhill Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $245,000, and fixed costs $98,000. Management is considering the following independent courses of action to increase net income.1. Increase selling price by 16% with no change in total variable costs or units sold.
2. Reduce variable costs to 59% of sales.
Compute the net income to be earned under each alternative.
1. Net Income
$enter a dollar amount
2. Net Income
$enter a dollar amount
Which course of action will produce the higher net income? select an option

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales $382,500 (units 5,100 $75 per unit)

variable costs $245,000 (48.04 per unit)

fixed costs $98,000.

Option 1:

Increase selling price by 16%.

New selling price= 75*1.16= 87

Sales= 5,100*87= 443,700

variable costs= (245,000)

fixed costs= (98,000)

Net income= 100,700

2. Reduce variable costs to 59% of sales.

Contribution margin= (382,500*0.41)= 156,825

fixed costs= (98,000)

Net income= 58,825

The most profitable option is the first one.

Alicia studies with her phone nearby so she can play her favorite music and keep up with what her friends are doing.In this case, how can Alicia make her studying environment more effective?

She can find a more comfortable chair.
She can have more resources available.
She can remove any possible distractions.
She can choose an area with more light.

Answers

In this case, Alicia makes her studying environment more effective as she can remove any possible distractions. The correct option is c.

What is studying?

Studying is crucial for personal skill development in addition to educational advancement. Your confidence, skill, and self-esteem can all be increased by having effective study techniques. Additionally, it aids in lowering tension and worry related to tests and deadlines.

Take anything out of your study area that is not necessary for studying. To lessen auditory distractions, wear noise-canceling headphones, listen to white noise, or try utilizing earplugs. Eliminate electronic irritants. Put your phone in silent mode and away from your line of sight.

Therefore, the correct option is c. She can remove any possible distractions.

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Answer:

C

Explanation:

edgen 2020

The product-variety externality is associated with the A. consumer surplus that is generated from the introduction of a new product. B. loss of consumer surplus from exposure to additional advertising. C. producer surplus that accrues to incumbent firms in a monopolistically competitive industry. D. opportunity cost of firms exiting a monopolistically competitive industry.

Answers

Answer:

A. consumer surplus that is generated from the introduction of a new product.

Explanation:

The product-variety externality is defined as consumer get the surplus that is generated from the introduction of a new product and entry of a new firm conveys a positive externality on consumers. It arises as new firms offer products that differ from those of the existing firms, however, it does not happen under perfect competition. Competitive market lead to efficient outcomes, unless there are externalities.

Gonzalez Company acquired $153,600 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $43,200 of the bonds for 98.Journalize entries to record the following in Year 1 (refer to the Chart of Accounts for exact wording of account titles):a. The initial acquisition of the bonds on May 1.b. The semiannual interest received on November 1.c. The sale of the bonds on November 1.d. The accrual of $1,300 interest on December 31.

Answers

Answer:

The Journal entries are as follows:

(i) On may 1,

Investment - Walker Co. A/c    Dr.  $153,600

To cash                                                               $153,600

(To record the initial acquisition of the bonds)

(ii) On November 1,

Cash A/c( $153,600 × 8% × 6/12)   Dr.  $6,144

To Interest revenue                                            $6,144

(To record the semiannual interest received)

(iii) On November 1,

Cash A/c ($43,200 × 98%)          Dr. $30,240

Loss on sale of investment A/c  Dr. $12,960

To Investment - Walker Co.                                $43,200

(To record the sale of the bonds)

(iv) On December 31,

Interest receivable A/c   Dr. $1,300

To Interest revenue                          $1,300

(To record the accrual of $1,300 interest)

Machinery purchased for $66,000 by Metlock Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,400 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $4,950 at the end of that time. Assume straight-line depreciation.Required:
a. Prepare the entry to correct the prior year's depreciation, if necessary.
b. Prepare the entry to record depreciation for 2021.

Answers

Answer:

a. Prepare the entry to correct the prior year's depreciation, if necessary.

  • When an asset's useful life is extended, the extension is done prospectively, not retrospectively. This means that past depreciation does not need to be adjusted.

b. Prepare the entry to record depreciation for 2021.

  • Dr Depreciation expense 4,510
  •     Cr Accumulated depreciation - machinery 4,510

Explanation:

purchase cost of machinery $66,000

estimated useful life 8 years

estimated salvage value $4,400

depreciation has been recorded using the previous basis during the first 5 years, but now the estimated useful life was extended to 10 years and the salvage value = $4,950

depreciation expense per year (during first 5 years) = ($66,000 - $4,400) / 8 = $7,700 per year

accumulated depreciation up to year 5 = $7,700 x 5 = $38,500

the carrying value of the asset on January 1, 2021 = $66,000 - $38,500 = $27,500

the new depreciation expense per year = ($27,500 - $4,950) / 5 = $4,510

depreciation expense for 2021:

Dr Depreciation expense 4,510

    Cr Accumulated depreciation - machinery 4,510

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