Answer:
$38.
Explanation:
Management perform Cost, Volume, and Profit (CVP) analysis to calculate break-even points, set target costs, and to set target profits. It helps them in formulating strategies effectively, reducing costs to generate maximum profit, and to utilize resources efficiently.
As we know that profit is the difference between sales and costs. So, the target cost can easily be calculated by re-arranging the profit equation which is given below;
Profit = Sales - Total Cost
⇒ Total / Target Cost = Sales - Profit
Simply put the figures in the above equation and it gives you;
Target cost = 53 - 15 = $38 OR 72% (38 / 53).
Note: It is more appropriate to state target profit on percentage basis. Here the percentage of target cost is 72%.
Answer:
Check the explanation
Explanation:
The Partial retention program is a risk financing expression which id often used by companies in retaining a part of the risk and in transferring of the remaining part.
The advantages and disadvantages of a partial retention program to the Swift Corporation are mentioned below:
Advantages
• Stability of Insurance cover
Partial retention program would enable car owners to know more accurately about the vehicle's insurance cost and the helps them to plan the their car expenses accordingly
• Retained Profits
Risk retention groups would allow policy holders to retain their profits than being passed to a commercial insurer.
• Insured interest
As the markets are uncertain, car owners are likely to be at risk. In such a situation, they would be more receptive in implementing loss control measures that would help in improving the future losses and reducing insurance premiums
Disadvantages
• Shared information
it may be possible that company owners may not want to share their personal details about their own businesses with other parties
• Re-entry into the market
it may happen if Risk retention group fails then reentering the commercial insurance market can turn out to be more expensive with less broad coverage.
Answer:
c. $12,175,000.
Explanation:
Given: Merchandise sold by Lang company= $12520000.
Sales return and allowances= $270000.
Discount= $140000.
While calculating net sales, freight out charges is not included as it an selling expense and it should be included while calculating Gross profit of the company.
Here, we have to find the last year net sales for Lang company.
∴
⇒ Net sales =
∴Net sales=
Answer:
C. Reduced prices of Sony televisions resulted in an increase in the quantity demanded.
Explanation:
Sony is a well known brand . What could explain a sudden double increase in sales while other brands' didn't is most likely a reduction in in prices of Sony products. It is a well known brand and they sell quality products which customers trust. Having a discounted price means they are offering a sale which customers would want to take advantage of.
Answer:
43150 units
Explanation:
For computing the equivalent units of production for conversion costs, first, we have to find the sale units which is shown below:
= Production units for material - ending work in progress units
= 44,500 units - 4,500 units
= 40,000 units
Now the ending work in progress units for conversion would be
= Ending work in progress units × percentage of completion
= 4,500 units × 70%
= 3,150 units
So, the equivalent units of production for conversion costs would be
= Sale units + ending work in progress units for conversion
= 40,000 units + 3,150 units
= 43,150 units