What indicator provides the clearest indication that an economy is experiencing deflation?

11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of produ

Delvig [45]

This question is incomplete, the complete question is;

Martinez company's relevant range production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:-

Average cost per unit

Direct materials $7.00

Direct labor $4.50

Variable manufacturing overhead $1.40

Fixed manufacturing overhead $4.00

Fixed selling expense $4.00

Fixed administrative expense $2.10

Sales commissions $1.10

Variable administrative expense $0.55

If 8,000 units are produced,

a) what is the total amount of manufacturing overhead cost incurred to support this level of production

b) What is this total amount expressed on a per unit basis

Answer:

a) the total amount of manufacturing overhead cost incurred to support this level of production is $51,200

b) What is this total amount expressed on a per unit basis is $6.40

Explanation:

a)

Given that;

number of units produced is 8,000 units

Variable manufacturing overhead is $1.40

Variable manufacturing overhead cost will be units produced / Variable manufacturing overhead

so Variable manufacturing overhead cost = 8000 units × $1.40 = $11,200

Now Fixed manufacturing overhead cost = 10000 units × $4 = $ 40,000

Total manufacturing overhead cost is the addition of Variable manufacturing overhead cost and Fixed manufacturing overhead cost

$11,200 + $40,000 = $51,200

b)

Number of units produced = 8,000

therefore Manufacturing overhead per unit = Total manufacturing overhead cost / Number of units produced

51,200 / 8,000 = $6.40

6 0

3 years ago

1. You’ve been hired by Nielsen Company to study the market for potatoes. Demand in the potato market is characterized by the de

icang [17]

Answer:

P = MR = 1

Explanation:

The demand function is q = 25 - 12p.

The total income is the price of potatoes multiplied by the quantities of potato --> P * Q

p*q = p*(25-12p)

p*q = 25p - 12p^2

the first derivative of the previous equation is the marginal revenue. In perfect competition the Price = Marginal revenue.

First derivative of total income ---> 25-24p

And MR = P

25-24p=p

25=25p

8 0

2 years ago

Raven Company has a target of earning $71,200 pre-tax income. The contribution margin ratio is 16%. What amount of dollar sales

Jlenok [28]

Answer:

$685,000

Explanation:

First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:

contribution margin ratio=contibution margin/sales revenue

contribution margin ratio=16%

contribution margin required=pretax income+fixed costs

contribution margin required=$71,200+$38,400=$109,600

16%=$109,600/sales revenue

16%*sales revenue=$109,600

sales revenue=$109,600/16%

sales revenue=$685,000

6 0

2 years ago

Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash = $250,000; Patents and copyrights = $720

spayn [35]

Answer:

Common stock balance= $1,039,000

Explanation:

A balance sheet can be described as a financial statement that presents the assets, liabilities and shareholders' equity of a company.

Common stock refers to the security such shares that represents ownership in a company.

In order to determine the common stock account balance for Rogers Corp., its balance sheet is first prepared as follows:

Rogers Corp.

Balance Sheet

For the year 2018

Particulars $ $

Intangible Assets:

Patents and copyrights 720,000

Tangible Assets:

Net fixed assets 3,400,000

Current Assets:

Cash 250,000

Accounts receivable 129,000

Inventory 345,000

Total Current Assets 724,000

Current Liabilities:

Accounts payable (530,000)

Notes payable (190,000)

Working Capital 4,000

Long-term Liabilities:

Long-term debt (1,830,000)

Net Total Assets 2,294,000

Financed by:

Common stock (w.1) 1,039,000

Accumulated retained earnings 1,255,000

Owners' Equity 2,294,000

Workings:

w.1: Common stock balance = Net total assets - Accumulated retained earnings = $2,294,000 - $1,255,000 = $1,039,000

4 0

3 years ago

When customers buy computers at Maalik's store, he offers a service package at a discounted rate. Additionally, he has an ongoin

salantis [7]

Answer:

Impacting his clientele base with increased profitability and to extend the duration of customer relationships.

Explanation:

Maalik is focused on improving customer relationship management, impacting the profitability of existing customers and extending the duration of customer relationships by offering a service package at a discounted rate and a promotion that allows customers to trade in their old computers for new ones at much lower prices than his competitors can offer.

6 0

2 years ago