Cost-plus pricing<span>, also known as mark-up </span>price<span>, takes place when a firm calculates its unit costs and then adds a percentage profit to determine </span>price<span>.</span>
Answer:
$240,500
Explanation:
We know that
Current ratio = Total Current assets ÷ total current liabilities
= $2,141,000 ÷ $842,000
= 2.5 times
For current ratio falling below 2.2, we have to assume the borrowed amount be X
So, the equation would be
$2,141,000+ X ÷ $842,000 + X = 2.2
$2,141,000+ X = 2.2 × ($842,000 + X)
$2,141,000+ X = $1,852,400 + 2.2X
$2,141,000 - $1,852,400 = 2.2X - X
$288,600 = 1.2X
So X would be $240,500
Answer:
d) credit to Paid-in Capital from Treasury Stock for $30,000
Explanation:
The entry for profit in sale of treasury stock is as computed below
Account Details Debit Credit
Cash (5000*20) $100,000
To treasury stock (5000*14) $70,000
To Additional paid in capital (5000*6) $30,000
Answer:
True
Explanation:
The effects of both changes on price is as follows:
1. The Greater Effect - change in demand due to the falling price of natural gas (a substitute for oil)
As price of natural gas, a substitute for oil, falls, demand for oil will fall pushing oil producers to respond by cutting crude oil prices in a bid to sustain demand and prevent its fall. <em>Thus, the effect is a price fall</em>.
2. The Lesser Effect - change in supply due to disruptions in oil-well operations in the Middle East
Due to supply disruptions which will result is a reduction in supply, the price of oil will tend to increase as consumers buy more of a commodity in less supply. <em>Thus, the effect on price is a rise</em>.
There, since the greater effect is a price fall, and the lesser effect is a price rise, equilibrium price is expected to fall.
Answer:
$45.99
Explanation:
Calculation for the applied factory overhead per unit for the Great P model
First step is to Calculate the total direct labour cost of High F and Great P
High F $175,200
($10,000*$17.52)
Great P $210,240
($16,000*$13.14)
Total direct labour cost $385,440
Second step is to calculate the factory overhead rate
Using this formula
Factory overhead rate=Budgeted factory Overhead cost/Allocation base
Let plug in the formula
Factory overhead rate=$1,349,040/$385,440
Factory overhead rate=350%
Now let calculate factory overhead per unit for the Great P
Direct labor cost per unit of product Great P $13.14
Great P Factory overhead per unit =$13.14*350%
Great P Factory overhead per unit =$45.99
Therefore Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is $45.99
