The pharmacy's monthly overhead is $52,875.
The term "overhead" describes continuing business costs that aren't directly related to providing a good or service. It is crucial for budgeting as well as for figuring out how much a business must charge for its goods or services in order to turn a profit. The charges or expenses for operating a business are referred to as overhead. These costs are unrelated to any particular product or service unit. Among the overhead expenses are: Rent, Utilities, Insurance, Office Equipment, Travel costs, wages and salaries, advertisement costs, legal and accounting costs. Data and calculations: $278,000 in monthly sales. $186,000 in inventory purchases. Total overhead: Salaries and wages $49,000, Electricity $2,000, $1,200 in insurance, $675 Maintenance, $52,875 in overhead overall. Consequently, the pharmacy's overhead for the month is $52,875.
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Answer:
The impact of eliminating the backpack division
Particulars Amount
Decrease in contribution margin $480,500 ($950500-$470,000)
<u>Decrease in Expenses:</u>
Fixed expenses <u>$208,800 </u> ($70522,000*40%)
Decrease in Net operating income <u>$271,700</u> (Financial disadvantage)
I think it might be C, I'm not sure but I think it is.
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Answer:
a. Subassemblies
Explanation:
Subassemblies are one of the inputs to manufacturing and service-delivery processes. This is because these are small units that need to be assembled separately but then later become part of the final larger manufactured product. Therefore since they are part of the final manufactured product they are an input in the manufacturing process of that larger product needed in order for it to be finished.