A massive wipe of poverty and starvation.
Answer:
(1) $132,000
(2) $66,000
Explanation:
Selling price per unit:
= Sales ÷ No. of units
= $400,000 ÷ 5,000
= $80
Variable cost per unit:
= variable cost ÷ No. of units
= $247,000 ÷ 5,000
= $42
Alternative 1:
Contribution margin = Sales - variable cost
= (5,000 × $80 × 1.1) - (5,000 × $42)
= $440,000 - $210,000
= $230,000
Net income = Contribution margin - Fixed cost
= $230,000 - $98,000
= $132,000
Alternative 2:
Contribution margin:
= sales - variable cost
= $400,000 - ($400,000 × 59%)
= $400,000 - $236,000
= $164,000
Net income = Contribution margin - Fixed cost
= $164,000 - $98,000
= $66,000
Anyone interested in starting a new business should focus on developing an accurate and compelling business plan - TRUE. To start a new business, a plan is a must because if you do not have steps to follow, the business will likely crumble before it's even launched. Making sure you are developing a well written plan and following the steps leads to a better chance of success.
Answer:
a. $47,975
b. $3,838
Explanation:
a. Cost of goods sold = Units transferred out * Cost per barrel
Cost per barrel
= (Material + Conversion costs) / Equivalent units produced
Equivalent units produced
= Units transferred = 11,400 - 1,900 = 9,500
EUP = Units transferred + Equivalent WIP
= 9,500 + (40% * 1,900)
= 10,260 units
Cost per barrel = (24,413 + 27,400 ) / 10,260
= $5.05
Cost of goods sold = 9,500 * 5.05
= $47,975
b. Value of Work in Process
= Work in process * Cost
= (40% * 1,900) * 5.05
= $3,838
