Which expense has to be incurred at the time of Production? a)fixed b)variable

ABC Company sells three products, X, Y and Z. The weighted average contribution margin for all three products is $3.05 per unit.

bearhunter [10]

Answer:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Explanation:

Giving the following information:

The weighted average contribution margin for all three products is $3.05 per unit. ABC's total fixed costs are $35,000

With the information provided, we can only calculate the break-even point in units for the whole company using the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 35,000/3.05

Break-even point (units)= 11,475

Now, imagine the following sales mix:

X= 0.25

Y=0.40

Z=0.35

We can determine the number of units for each product:

X= 11,475*0.25= 2,869

Y= 11,475*0.4= 4,590

Z= 11,475*0.35= 4,016

7 0

4 years ago

Macrosoft Company reports net income of $62,000. The accounting records reveal depreciation expense of $77,000 as well as increa

iren2701 [21]

Answer:

$108,500

Explanation:

The preparation of the operating activities section is presented below

Cash flow from operating activities

Net income $62,000

Add: depreciation expense $77,000

Add: Increase in account payable $10,000

Add: Increase in income tax payable $16,500

Less: Increase in prepaid rent -$57,000

Cash flow from operating activities $108,500

The negative amount shows cash outflow and the positive amount shows the cash inflow

5 0

4 years ago

Marketing plans are important only for big companies. True or False

Lady_Fox [76]

Thats a big FALSE because the only reason those big companies got big is because they had marketing plans when they were little companies. Marketing plans are important for ALL businesses, big or little.

5 0

3 years ago

Read 2 more answers

To make a batch of 800 units, it is estimated that 120 direct labor hours are required at a cost of $12 per hour. Direct materia

Anna [14]

Answer:

It is more convenient to buy the product from an outsource supplier.

Explanation:

Giving the following information:

To make a batch of 800 units, it is estimated that 120 direct labor hours are required for $12 per hour. Direct material costs are estimated at $1,800 per batch. The overhead costs are calculated based on an overhead rate of $7.50 per direct labor hour. The item can be readily purchased from a local vendor for $5 per unit.

We need to determine whether it is more convenient to make in house or outsource.

Make in house:

Total variable cost= 120*12 + 1,800 + 120*7.5= $4,140

Unitary variable cost= 4,140/800= $5.18

Buy= 5

It is more convenient to buy the product from an outsource supplier.

6 0

4 years ago

When joseph, a restaurant manager, plans, he sets goals and then decides how to achieve them. this is the definition of planning

Margarita [4]

This is a true statement. When Joseph is setting these plans, he is giving himself a roadmap on how he and his employees will best achieve these goals over the timeframe required. By planning, he can make sure that the business stays on track to meet whatever figures the company has set forth.

8 0

3 years ago