Answer:
Marginal product will increase.
Explanation:
Since the labor is only variable input and the marginal cost of production is diminishing that means the cost of producing additional unit is lower. So marginal product of labor will be increasing.
Moreover, MC = w /MPL
Thus, diminishing marginal cost will exhibit increasing marginal product of labor.
Answer:
E) A sharp increase in its forecasted sales.
Explanation:
Haven developed a forecasting model to estimate its AFN for the upcoming year, F. Marston, Inc. would have an increase in the additional funds needed (AFN) due to the sharp increase in its forecasted sales.
An increase in sales translates to an increased cash flow and profits.
Answer:
predetermined overhead allocation rate is 12 per direct labor hour
Explanation:
given data
indirect costs = $102000
labor time = 8500 hours
cost of labor = $60 per hour
to find out
predetermined overhead allocation rate
solution
we find here predetermined overhead allocation rate by given formula that is
predetermined overhead allocation rate = indirect costs / labor time .............1
put here value in equation 1 to get rate
predetermined overhead allocation rate = indirect costs / labor time
predetermined overhead allocation rate = 102000 / 8500
predetermined overhead allocation rate = 12
so predetermined overhead allocation rate is 12 per direct labor hour
Answer:
$2.51
Explanation:
Gena Manufacturing Company calculation for contribution margin unit
Using this formula
Fixed cost + Tax profit/Estimated sales units
Let plug in the formula
Where:
Fixed cost =$259,000
Tax profit=$126,034
Estimated sales units=153,400
Hence:
(259,000 + 126,034) / 153,400
=$385,034/153,400
= $2.51
Therefore the contribution margin that is required to attain the profit target will be $2.51
Pretty sure its D. Hope it helps
