<span>Decrease by $57,400 per month.
Looks look at the cash flow for continuing to produce product a and discontinuing product a.
Continuing to produce
Income = 15900 * $29 = $461,100
Variable Expenses = 15900 * 23 = $365,700
Fixed overhead = $109,000
Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600
So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it.
Income = $0
Variable Expenses = $0
Fixed overhead = $71,000
Total cash flow = $0 - $71,000 = -$71,000
So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000.
The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>
It should be noted that contract or event profile is usually stipulated in writing all the client's requirements and gives all of the relevant information.
An event profile can be regarded as set of event scripts, which helps to give description about an event.
This profile or contract do list out all the requirements that is needed by a company from the client in executing their services.
Therefore, contract or event profile serves all the client's requirements and gives all of the relevant information.
Learn more about contract or event profile at:
brainly.com/question/24858866
Answer:
The selling price for Job A is $75,978.00
Explanation:
Molding Finishing Totals
Machine hours 4000 1000 5000
Fixed mnf. overheads 19600 2400 22000
Variable manufacturing
Overheads per machine hours 1.1 2.1
<u> JOB A</u> <u>JOB B</u>
Direct materials 13,600 7500
Direct labour costs 20,700 7400
Molding machines 2700*1.1= 2,970
Finishing 400*2.1= 840
Fixed mnf: molding 19600*4000/5000= 15,680
Fixed mnf: finishing 2400*1000/5000= <u> 480 </u>
Total cost (sum of all the above) $54,270
Mark up = 40%
Mark up=gross profit (GP)*100/cost
40%= GP*100/54270
40*54270/100= GP
GP= 21,708
Sales= cost + GP
Sales= 21,708+54,270
Sales= $75,978.00
Answer:
the amount of earnings retained by the firm does not affect market price or the P/E
Explanation:
A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.
The rate of return is referred to as the annual return if the time period is typically a year.
If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>
Answer:
$40 and $20
Explanation:
Based on the information provided within the question it can be said that in this scenario there would be two sets of standards. The first would be the international accounting standards which recognizes the midpoint of the range, which in this case is $40. While the second is the U.S standard which recognizes the low point of the range, which in this case is $20.
