Answer:
1. 73 %
2. 27 %
3. $60,000
4. Ways to increase projected operating income without increasing total sales revenue :
- Reduce the variable costs per unit
- Reduce fixed overheads
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
Where,
Contribution = Sales - Variable Costs
= $88,000 - $23,760
= $64,240
Then,
Contribution Margin Ratio = $64,240/ $88,000 × 100
= 73 %
Variable Cost Ratio = Variable Cost / Sales × 100
= $23,760 / $88,000 × 100
= 27 %
Break-even sales revenue = Fixed Costs ÷ Contribution Margin Ratio
= $43,800 ÷ 0.73
= $60,000
<u>Ways to increase projected operating income without increasing total sales revenue :</u>
- Reduce the variable costs per unit
- Reduce fixed overheads
Answer:
Direct material price variance= $12,500 unfavorable
Explanation:
Giving the following formula:
The standard price per pound is $2.00.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The actual purchase price per pound of materials was $2.25.
<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 2.25)*50,000
Direct material price variance= $12,500 unfavorable
Answer:
A) $0
Explanation:
If the award was unsolicited and given to Joan in recognition for her accomplishments in scientific, educational, literary, religious, artistic, or civic fields, then the award is not taxed.
The unsolicited part is the key here, since most awards are given to candidates that have been previously been nominated by someone, e.g. Nobel prizes are only given to nominated candidates and the winners must pay income taxes.
Answer:
Per Chevron 3Q 2013 Filling:
The percentage change in the cost of purchased oil products nine months to September 30, 2013 when compared to nine months in 2012 was:
2.47%
Explanation:
a) Data and Calculations:
Cost of purchased oil products:
2013 $34,822,000,000
2012 $33,982,000,000
Change $840,000,000
Percentage Change = $840/$33,982 x 100
= 2.47%
b) The implication is that Chevron's cost of purchased oil products in third quarter of 2013 increased by 2.47% when compared with the same period in 2012. This percentage change is calculated by subtracting the Q3 2012 cost of purchased oil products from the Q3 2013 cost of purchased oil products and then dividing the difference by the Q3 2012, and multiplying by 100. The change could be caused by increases in the price of oil products or other variables.
