Which of the following goods would you expect to have the largest income elasticity of demand?

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $215. Data for last year’

Stella [2.4K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Selling price= $215

Units in beginning inventory 0

Units produced 9,800

Units sold 9,300

Units in ending inventory 500

Variable costs per unit:

Direct materials $ 61

Direct labor 33

Variable manufacturing overhead 10

Variable selling and administrative 15

Total variable cost per unit $ 119

Fixed costs:

Fixed manufacturing overhead $ 274,400

Fixed selling and administrative 510,000

Total fixed costs $ 784,400

Absorption costing includes fixed manufacturing overhead in the cost per unit.

A) Unitary fixed manufacturing overhead= 274,400/9800 units= $28

Unitary cost= Direct materials + Direct labor + Variable manufacturing overhead + fixed manufacturing overhead

Unitary cost= 61 + 33 + 10 + 28= $132

B) Income statement:

Sales= 9300*215= $1,999,500

COGS= 132*9300=$1,227,600

Gross profit= $771,900

Total selling and administrative expense= 510,000 + 15*9300= 649,500

Net operating income= $122,400

4 0

3 years ago

Contact Process: What safety, cost, or other considerations prevent most industrial applications from using the most ideal condi

Margaret [11]

So here is the answer of the given question above:
In terms of economics, Harber's process takes a huge amount of capital. Initially, the process demands for a very high pressure and this is very expensive to produce. Second, the company would need to establish extremely sturdy pipes and containment vessels to endure the very high pressure, in order to produce this required condition; the building process is very costly as well as the maintenance. Hope this answer helps.

5 0

3 years ago

WILL GIVE BRAINLIEST PLS ANSWER

fomenos

The answer is A, that way you have all the fine print

6 0

3 years ago

On April 1, Fisher Corporation borrowed $400,000 from its bank by signing a 9%, 5-year note payable. The note calls for 60 month

Andre45 [30]

Answer:

a) 3,000

b) 396,850

c) 2,976.38

d) 393,873.62‬

Explanation:

a) principal x rate x time = interest

400,000 x 0.09 x 1/12 = 3,000

b) 6,150 - 3,000 = 3,150 principal payment

400,000 - 3,150 = 396,850

c) principal (carrying value) x rate x time = interest

396,850 x 0.09 x 1/12 = 2,976.38

d) 396,850 - 2,976.38 = 393,873.62‬

3 0

4 years ago

Accounts receivable in an existing business:

Artemon [7]

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

<em>Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.</em>

4 0

3 years ago