Answer:
(a) $88,000
(b) $166,000
Explanation:
(a) Total direct manufacturing cost per unit:
= Direct materials cost per unit + Direct labor cost per unit
= $ 5.30 + $ 3.50
= $8.80
Total direct manufacturing cost:
= Total direct manufacturing cost per unit × Number of units produced
= $8.80 × 10,000 units
= $88,000
(b) Total amount of indirect manufacturing costs:
= Fixed cost + Variable cost
= $150,000 + (Variable manufacturing overhead per unit × Number of units produced)
= $150,000 + ($1.60 × 10,000)
= $150,000 + $16,000
= $166,000
Given:
Cost of goods sold = $852,000
Beginning inventor = $40,600
Ending inventory = $48,000
By definition,
Average inventory = (1/2)*(Beginning inventory + Ending inventory)
= (1/2)*(40600 + 48000)
= $44,300
Answer: $44,300
Answer:
A) Apple
Explanation:
Price elasticity describes how sensitive the demand for a product is a result of a change in price. A product is price elastic if a small change in price causes a big difference in its demand. A Product is price inelastic if a change in price does not create a significant change in its demand.
Apples will be more price elastic. Apple is fruit has may alternatives. As a fruit, apple competes with many others. A small increase in price will make consumers consider other fruits. If the price decreases, then the demand is likely to rise.
Water and gasoline are necessary goods. We need them for survival. An increase or decrease in price will have minimal changes in demand. Jewellery are luxury goods. They are bought for their value and worth. Changes in price will not affect their demand.
The return on equity of Oscar's dog house is 18.6% (=12.5%*1.49) based on the information shown on the question above. This problem can be solved using the DuPont identity which stated as Return on Equity = profit margin * asset turnover * equity multiplier and in this problem, we do not have the asset turnover ratio. We can make a simple alteration to the formula because of Return on asset = profit margin * asset turnover. Therefore, we will find a new formula which stated as RoE = (Return on asset*equity multiplier).