Answers
Answer:
$22.5 per unit
Explanation:
Given that,
When 15,000 units produced,
Company has fixed costs per unit = $18 per unit
Company has variable cost per unit = $9 per unit
Therefore,
Total fixed cost at 15,000 units:
= 15,000 units × $18 per unit
= $270,000
Per unit Fixed cost at 12,000 units:
= Total fixed cost ÷ 12,000 units
= $270,000 ÷ 12,000 units
= $22.5 per unit
Final answer:
To find the fixed costs per unit when 12,000 units are produced, divide the total fixed costs by the number of units produced at that level.
Explanation:
To find the fixed costs per unit when 12,000 units are produced, we first need to calculate the total fixed costs at 15,000 units and then divide it by 15,000 to find the fixed cost per unit at that level of production. Given that the fixed costs are $18 per unit at 15,000 units, the total fixed costs at that level would be 15,000 units multiplied by $18, which equals $270,000. To find the fixed costs per unit at 12,000 units, we divide the total fixed costs of $270,000 by 12,000 units, resulting in a fixed cost per unit of $22.50.
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Related Questions
9. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)? A) The CAFR has three main sections: introductory, financial, and statistical. B) Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget
A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $7.55. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is:
A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
Answers
Answer: The eight-firm concentration ratio in this industry is 0,7.
Explanation: The concentration ratio measures the proportion of total production produced by, in this case, the first eight largest companies in an industry. It is calculated by dividing the market share of the first eight firms in the industry by the total market share.
So: The first 8 firms sell: 3 each 12%. The next 3 each 8%. And thirdly 2 firms each 5%.
Then we calculate: (3x12) + (3x8) + (2x5) = 70% These companies represent 70% of the industry's total output.
So the concentration ratio is = = 0,7
Answers
Answer:
$2,040,000
Explanation:
Annual Interest calculation
Interest = Par/Face Value × Coupon Rate
= $17,000,000 × 12.0%
= $2,040,000
Therefore, interest to be paid annually on these bonds is $2,040,000.
Answers
Answer:
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000
Explanation:
Giving the following information:
Wide Open Industries Inc. has fixed costs of $475,000.
AA
Selling Price= $145
Variable Cost= $105
Contribution Margin per Unit= $40
BB
Selling Price= 110
Variable Cost= 75
Contribution Margin per Unit= 35
The sales mix for products AA and BB is 60% and 40%, respectively.
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
weighted average selling price= 145*0.6 + 110*0.4= 131
weighted average variable expense= 105*0.6 + 75*0.4= 93
Break-even point (units)= 475,000/ (131 - 93)= 12,500 units
AA= 12,500*0.6= 7,500
BB= 12,500*0.4= 5,000
Answers
Answer: Raises the levels of both productivity and income
Explanation:
In a closed Economy, there is no trade with the outside world.
That would mean that the GDP formula for their expenditure model will look like this,
Y = C + I + G
Where Y is (GDP)
C is consumption
I is investment and,
G is Government Spending
Investment is also known as Savings because it is the amount of Total income that is not spent after individuals CONSUME and the Government SPENDS,
I = Y - G - C.
When an economy SAVES MORE they are sacrificing consumption now for future consumption and saving more.
This means that there is more money to invest in Economic activities.
Since there is a higher Investment in Economic activities, we can expect higher CAPITAL STOCK which can drive Economic growth as it leads to greater productivity as well as greater income because the Economy is growing.
The Harrod-Domar model of economic growth speaks more on this.
Interest Revenue 1,900
Net Sales Revenue 130,000
Cost of Goods Sold 81,000
Administrative Expenses 8,500
Required:
Prepare the multi-step income statement for the year ended December 31, 2018.
Answers
Solution and Explanation:
the following is the income statement for the year ending
Saturn motorcycle's
Income statement
year ending december 31, 2018
Particulars Amount
net sales revenue 130000
Less: cost of goods sold 81000
gross profit 49000
Less: operating expense:
Selling expenses 10400
adminstartive expenses 8500
Total operating expenses 18900
operating profit 30100
Non operating revenues ( expenses)
add: interest revenue 1900
total other revenue 1900
net income 32000
Note: every amount is in dollars
Final answer:
To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, subtract the cost of goods sold from the net sales revenue to get the gross profit. Then, add the selling expenses and administrative expenses to get the operating expenses. Finally, add the operating income and other income to get the net income.
Explanation:
To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, we need to include key components such as net sales revenue, cost of goods sold, selling expenses, administrative expenses, and interest revenue. Here is the breakdown:
- Gross Profit: Subtract the cost of goods sold from the net sales revenue. (130,000 - 81,000 = 49,000)
- Operating Expenses: Add selling expenses and administrative expenses. (10,400 + 8,500 = 18,900)
- Operating Income: Subtract operating expenses from gross profit. (49,000 - 18,900 = 30,100)
- Other Income: Include interest revenue. (1,900)
- Net Income: Add operating income and other income. (30,100 + 1,900 = 32,000)
The multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018 is as follows:
Saturn Motorcycle Income Statement
Net Sales Revenue$130,000Cost of Goods Sold$81,000Gross Profit$49,000Operating Expenses$18,900Operating Income$30,100Other Income$1,900Net Income$32,000
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Answers
Answer:
4.47
Explanation:
The computation of the standard deviation of lead time is shown below:
= √lead time × standard deviation of demand
= √ 5 days × 4
= √20
= 4.47
We simply applied the above formula to determine the standard deviation of demand during lead time
Hence, all the other items would be ignored
Final answer:
The standard deviation of demand during lead time, given an average lead time of 5 days, standard deviation of demand of 4, average demand of 12, and standard deviation of lead time of 1.2 days, can be calculated using a specific formula. The result after substituting the given values into the formula and simplifying is approximately 15.9.
Explanation:
The standard deviation of demand during lead time can be determined using the formula for the standard deviation, which states that the standard deviation of demand during lead time is the square root of (Average lead time * (standard deviation of demand)^2) + (average demand^2 * (standard deviation of lead time)^2).
So you would plug in the given values:
√[(5 * (4)^2) + ((12)^2 * (1.2)^2)]
= √[80 + 172.8]
= √252.8
≈ 15.9
So the standard deviation of demand during lead time is approximately 15.9.
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