Monica has found that her contribution margin per hour of time for her highest selling product is $2,500. She wants to dedicate an extra 40 hours a month to this product, but she needs to know the increase in total contribution margin if she does this. The product generally sells for $100 a unit. What would be the increase in total contribution margin for this product
Answers
Answer:
The correct answer is $100,000.
Explanation:
According to the scenario, the given data are as follows:
Contribution margin = $2,500 per hour
Extra time = 40 hours
Selling price = $100 per unit
So, we can calculate the increase in contribution margin by using following formula:
Increase in contribution margin = Contribution margin × Extra time
By putting the value in the formula, we get
= $2,500 × 40
= $100,000
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Answers
Answer:
12.8%
Explanation:
Data provided in the question:
Debt = 60% = 0.60
Equity = 40% = 0.40
Cost of debt, kd = 10% = 0.10
cost of equity, ke = 17% = 0.17
Now,
firm weight average cost of capital
= ( ke × weight of equity ) + ( kd × weight of debt )
on substituting the respective values, we get
= ( 0.17 × 0.40 ) + ( 0.10 × 0.60 )
= 0.068 + 0.06
= 0.128
or
= 0.128 × 100%
= 12.8%
Answers
Answer: 125%
Explanation:
Manufacturing overhead = Predetermined overhead rate * Direct labor
Manufacturing Overhead
= Work in process balance - Direct labor - Direct materials
= 3,960 - 640 - 440 - 540 - 740
= $1,600
The rationale behind the above is that that the Work in process account is made up of Direct labor, material and overhead. The Overhead would therefore be the balance less the Direct material and labor.
Direct Labor = 540 + 740
= $1,280
Manufacturing overhead = Predetermined overhead rate * Direct labor
1,600 = Predetermined overhead rate * 1,280
Predetermined overhead rate = 1,600/1,280
= 1.25
= 125%
A 4 7
B 2 4
C 8 11
D 3 5
E 5 11
Answers
Answer:
Order of processing the jobs:
Job Critical Ratio
C 1.375
D 1.667
A 1.75
B 2.0
E 2.2
Explanation:
a) Data and Calculations:
Job Processing Job due Critical
Time (days) date (days) Ratio
A 4 7 1.75 (7/4)
B 2 4 2.0 (4/2)
C 8 11 1.375 (11/8)
D 3 5 1.667 (5/3)
E 5 11 2.2 (11/5)
b) The critical ratio (CR) dispatching indicates the priority sequencing that should be adopted to process work at a work center. The first process is to create the CR priority index number, which is obtained from the formula of due days divided by the processing days. Therefore, the job with the lowest CR is scheduled first.
Final answer:
To determine the order of processing using the critical ratio dispatching rule, the critical ratio for each job is calculated by dividing the time remaining until the job's due date by the processing time. The job with the highest critical ratio is processed first, followed by the job with the next highest critical ratio.
Explanation:
The critical ratio dispatching rule is used to determine the order in which jobs should be processed based on their due dates and processing times. The critical ratio is calculated by dividing the time remaining until the job's due date by the processing time. The job with the highest critical ratio should be processed first, followed by the job with the next highest critical ratio, and so on.
- Job C has a critical ratio of 1.125 (8/7).
- Job E has a critical ratio of 1 (5/5).
- Job D has a critical ratio of 0.6667 (2/3).
- Job A has a critical ratio of 0.5714 (3/5).
- Job B has a critical ratio of 0.5 (2/4).
Therefore, the jobs should be processed in the following order: C, E, D, A, B.
Learn more about Critical Ratio Dispatching Rule here:
#SPJ3
Answers
Answer:
b) 240
Explanation:
The fixed costs to the production of the tractors are $600.000, independently if the company makes 1 or none tractor, the company must spend $600.000 variable cost are attached to the number of tractors that the company will make. In this case the company will produce $15.000 and the variable cost is $200, its a reason why you must multiply those numbers. Excersise:
Total cost of produce n tractor = fixed costs+( number of tractors * variable cost)
where n = 15.000
Total cost of produce n tractor =$600.000+(15.000*$200)
Total cost of produce n tractor =$600.000+ ($3.000.000)
Total cost of produce 15.000 tractors = 3.600.000
Now that you have the total cost, you have to divide in the number of tractor to fin the average cost per quantity:
Average cost= (Total cost of 15.000 tractors/number of tractors)
Average cost= (3.600.000/15.000)= $240
Answers
Answer:
The question is not complete:
Here is the complete question:
The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.
What was the pension expense for the year?
Here is the answer: The pension expense is $25 million.
Explanation:
Pension is the form of defined benefit contribution plan which require employers to make certain periodic contribution on behalf of employees. This contribution is reported as an expense in the income statement if even though the benefit has not been enjoyed by the employees. To determine the value of this expenses to be included in the income statement, the components of the pension expenses are relevant.
Components of pension expense are service cost, interest cost, return on plan asset, amortization of prior service costs and gain or loss from change in asset value.
Here is the determination of the pension expense as required by the question.
$`M
Service cost 25
Interest ($460,000,000*5%) 23
Expected return on plan asset (23)
Amortization of prior service costs -
Gain or loss in change in value -
Pension expense 25
Answers
Answer:
d. 20
Missing Information:
Explanation:
TO sovle for the consumer surplus we need to get the equilibrium price and quantity.
If P = 2 then:
Qd = 15 - (5 / 2) x 2 = 15 - 5 = 10
Now we need to knwo how much is the price that makes Lucy do not consume:
We solve for Qd = 0
0 = 15 - (5/2) x P
p = 15 / (5/2) = 6
Now we calculate the area of the consumer surplus which is the area of the demand curve above the equilibrium price.
10 x (6-2) / 2 = 10 x 4 / 2 = 20