Decision Making Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows: A B C D E
1 Orange Cola Lemon-Lime Root Beer
2 Concentrate $ 4,625 $129,000 $ 105,000 $ 7,600
3 Water 1,250 30,000 25,000 2,000
4 Sugar 3,000 72,000 60,000 4,800
5 Bottles 5,500 132,000 110,000 8,800
6 Flavor changeover 3,000 4,800 4,000 10,000
7 Conversion cost 1,750 24,000 20,000 2,800
8 Total cost transferred to finished goods $19,125 $391,800 $324,000 $36,000
9 Number of cases 2,500 60,000 50,000 4,000
10 Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors.
Determine the cost per case for each of the four flavors. Round your answers to two decimal places
Orange Cola Lemon-Lime Root Beer
per case $_____ $_____ $_____ $_____
Answers
Answer and Explanation:
As per the scenario the solution of cost per case for each of the four flavors is shown below:-
Particulars Orange Cola Lemon Lime Root Beer
Total Cost
transferred to
finished goods a $19,125 $391,800 $324,000 $36,000
Number of cases b 2,500 60,000 50,000 4,000
Cost Per Case $7.65 $6.53 $6.48 $9
(c = a ÷ b)
Therefore we divide the total cost transferred to finished out by number of cases to figure out the cost per case.
Related Questions
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:U.S. LDCSales (units) 100,000 20,000Labor (hours) 20,000 15,000Raw materials (currency) $20,000 FC 20,000Capital equipment (hours) 60,000 5,000a. Calculate partial labor and capital productivity figures for the parent and subsidiary. Do the results seem confusing?b. Compute the multifactor productivity figures for labor and capital together. Do the results make more sense?c. Calculate raw material productivity figures (units/$ where $1=FC 10). Explain why these figures might be greater in the subsidiary.
A salesperson is trying to decide which element of the sales presentation mix to emphasize in a particular presentation. She wants to make sure her communication will resonate with the prospect. What term describes the process this salesperson is going through?
Ford Motor Company is considering launching a new line of Plug-in Electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 30% tax rate on its pre-tax income.The amount that Ford Motor Company owe in taxes next year without the launch of the new SUV is closest to:A) $24.0 millionB) $56.0 millionC) $31.5 millionD) $13.5 millionThe amount that Ford Motor Company owe in taxes next year with the launch of the new SUV is closest to:A) $13.5 millionB) $31.5 millionC) $56.0 millionD) $24.0 million
Employees at an insurance company were complaining about the form used for evaluating employee effectiveness. Their complaints were related to ________ justice. procedural interpersonal informational distributive
offer incentives to the team with the highest sales
offer college reimbursement for business classes
offer free leadership seminars to all employees
hold a weekly "employee appreciation" party
Answers
Answer:
The correct answer is letter "E": hold a weekly "employee appreciation" party.
Explanation:
Organizational commitment plays a key role in employees' performance. The more engaged workers are with the company they work for, the more likely their production is going to be higher. Affective commitment refers to increasing the bonds that link workers within the organization. Casual reunions after every period of time are one of the many activities firms could use to engage employees with their brand.
Answers
Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
Answers
Answer:
The answer and procedures of the exercise are attached in the following archives.
Explanation:
The first part of the journal entry would record the expenses as the receipt. Hence the expense account would be a debit. A corresponding entry would be a credit to the cash account to record the receipt of such expenses. This is done basis the basic accounting rule that increase in the asset and expense account signifies as debit and vice versa whereas increase in the liability and revenue account would be regarded as the credit.
The second journal entry would increase the petty cash account by $50 to raise the balance of existing petty cash from $280 to $330. A corresponding effect would be a credit to the cash account.
Answers
Answer:
c. 7215
Explanation:
Number of shares of Stock C = 275
Value of Stock C = $52
Number of shares of Stock D = 240
Value of Stock D = $23
The weight of stock of a given stock is defined by the total value of the stock divided by the total value of the portfolio. For stock C:
The weight of of Stock C is 0.7215 or 72.15%.
Answers
Answer: George's initial price markup over marginal cost was approximately 41.2% George's desired markup is 45% Since George's initial markup, or actual margin, was Less than his desired margin, raising the price was profitable
Explanation:
a) Price Elasticity of Demand = [(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]
= 5000- 4000/4000+ 5000) / 8.50- 9.50 /8.50 ₊9.50 =
1000/8000 / -1/ 18 = 0.125/-0.055 = -2.2
George's initial price markup over marginal cost was approximately
when Marginal cost = $5
b)initial price markup = Price - marginal cost / price = 8.50 - 5.00/ 8.50 = 0.412= 41.2%
C) George's desired margin = 1/absolute value of price elasticity = 1/ 2.2= 0.45= 45%
.
D)Since George's initial markup or actual margin was less than his desired margin, raising the price is profitable.
This is because When the markup is lower than the margin, business is running on a loss, so it is nessesary to increase price.
Final answer:
The price elasticity of demand for George's T-shirts is approximately -1.7, indicating that demand is elastic. The initial markup over the cost price was 70%, but the question doesn't specify the desired markup or if raising the price satisfied that margin.
Explanation:
The price elasticity of demand measures how sensitive the quantity demanded is to a price change. It's calculated as the percentage change in quantity demanded divided by the percentage change in price. In George's case:
- Initial quantity: 5000 T-shirts
- New quantity: 4000 T-shirts
- Initial price: $8.50
- New price: $9.50
So, the percentage change in quantity = (4000-5000)/5000 = -20% and percentage change in price = ($9.50-$8.50)/$8.50 = 11.76%. Therefore, price elasticity of demand = -20%/11.76% = -1.7 (approx.). This indicates that the demand is elastic, meaning quantity demanded is sensitive to price changes.
Regarding the price markup, this is the percentage increase over the cost price. The initial markup = ($8.50-$5)/$5 = 70%. The question didn't specify the desired markup, or if raising the price satisfied the desired margin.
Learn more about Price Elasticity of Demand here:
#SPJ3
Answers
Answer:
Find the attached dividend analysis spreadsheet for Theater Inc.
Explanation:
In analyzing the dividends in the respective years, I first calculated yearly preferred dividends which is $75,000 i.e 25,000*$100*3%
In any year where total dividends declared and paid fell short of $75,000,the entire amount is given as preferred dividends with balance carried over to future years.