Answer:
The profit margin earned if each unit requires two machine-hours is 25%
Explanation:
For computing the profit margin, first, we have to compute the estimated overhead rate per unit which is shown below:
Estimated Overhead rate = (Estimated manufacturing overhead costs) ÷ (estimated machine hours)
= ($240,000) ÷ (40,000 machine hours)
= $6
Now the profit per margin would equal to
= Selling price per unit - direct cost per unit - overhead cost per unit × number of required machine hours
= $20 - $3 - $6 × 2
= $5
Now the profit margin would equal to
= (Profit per unit) ÷ (selling price per unit) × 00
= ($5 ÷ $20) × 100
= 25%
Mega is likely liable for trespassing. It is because when an
individual trespass on someone else’s property without the owner’s consent, the
individual who had trespass would likely be liable or detained for trespassing on
someone else’s property and can be charged based on the law.
Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
Answer:
$4,536
Explanation:
LIFO assumes that the units to arrive last will be sold first. Hence inventory valuation is based on the prices of earlier units.
Ending Inventory = 36 x $126 = $4,536
The value of the ending inventory using the LIFO method of inventory pricing is $4,536.
Shows how participants in the market are linked.
