Answer:
$21.44
Explanation:
Calculation for the cost per equivalent unit for materials for the month in the first processing department
First step
Units completed and transferred out $7,500
Ending inventory($800+$8,400-$7,500)*70% Ending inventory =1,700*70%
Ending inventory =$1,190
Equivalent units for Materials $8,690
($7,500+$1,190)
Total materials costs $186,300
Second step
Cost per equivalent unit for materials=Total materials costs÷ Equivalent units for Materials
Cost per Equivalent unit for Materials $186,300÷$8,690
Cost per Equivalent unit for Materials=$21.44
Therefore the cost per equivalent unit for materials for the month in the first processing department is closest to $21.44
Answer:
7.3%; 12.17%; 0.6 times; 15.95%
Explanation:
Return on assets:
= Net Income ÷ Average total assets
= ($65,700 ÷ $900,000) × 100
=
7.3%
Profit Margin:
= Net Income ÷ Net Sales
= ($65,700 ÷ $540,000) × 100
= 12.17%
Asset Turnover:
= Net Sales ÷ Average Total Assets
= $540,000 ÷ $900,000
= 0.6 times
Return on Equity:
= Net Income before dividend ÷ Equity
= [($65,700 + $30,000) ÷ $600,000] × 100
= ($95,700 ÷ $600,000] × 100
= 15.95%
Answer:
If closed the operating income will decrease by 50,000
Is a better scenario to continue with the residential sercives
Explanation:
<em><u>current scenario:</u></em>
contribution margin 450,000
Fixed Cost 480,000
net loss 30,000
<em><u>drop scenario:</u></em>
contribution margin = 0
fixed cost 450,000-370,000 = 80,000
net loss (80,000)
Answer:
Gunst should produce 500 Bio-mutant games:
- total contribution margin = $71 x 500 = $35,500
Explanation:
Android Bio-mutant Cyclops
selling price $100 $107 $125
labor $48 $24 $60
direct materials $9 $8 $16
variable overhead $7 $4 $9
contribution margin $36 $71 $40
labor hours 4 2 5
Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.
Gunst should produce 500 Bio-mutant games:
- total revenue = $107 x 500 = $53,500
- total contribution margin = $71 x 500 = $35,500
If it produces 250 Android games its total contribution margin will = $9,000
If it produces 200 Cyclops games its total contribution margin will = $8,000
