Answer:
$15.30
Explanation:
Given that,
Fixed costs = $1,800,000 per year
Variable cost = $3.30 per unit
40% of its business is with one preferred customer.
Total units sold in a year = 150,000
Unit cost per item:
= (Fixed cost ÷ Total units sold) + Variable cost per unit
= ($1,800,000 ÷ 150,000) + $3.30
= $12 + $3.30
= $15.30
Therefore, the unit cost per item is $15.30.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units, the actual direct labor cost was $48000 for 3000 direct labor hours worked.
We need to calculate the total direct labor variance, using two formulas:
Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (1,800*2 - 3,000)*15= $9,000 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (15 - 48,000/3,000)*3,000= $3,000 unfavorable
Total direct labor variance= 9,000 - 3,000= $6,000 favorable
Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
Answer:
The correct answer is letter "D": Opportunity cost.
Explanation:
Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.
Answer:
Flashfone and Pictech
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)___low____ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)__low____price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) __low____ price.
c. Considering all of the information given, pricing high (is, is not) _is not_ a dominant strategy for both Flashfone and Pictech.
Explanation:
a) Data and Calculations:
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
b) A dominant strategy exists if Pictech or Flashfone would implement a particular strategy that benefits it no matter what the other firm does.