If the halo effect is apparent in a performance review, it indicates:

Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following

Brilliant_brown [7]

Answer:

c. $8

Explanation:

Calculation to determine the selling price

First step is to calculate the Markup percent

Markup percent= (90,000 + 150,000) / (30,000 x 15)

Markup percent = .533

Now let calculate the selling price

Selling price=533 x $15 per unit

Selling price= $8

Therefore the Selling price will be $8

7 0

3 years ago

Which of the following would you list as an "Essential (Fixed)" expense?

11Alexandr11 [23.1K]

Out of the above choices I would Asnwer. D Rent. Rent is an Essential (fixed) expense. The other expenses electricty, telephone and car repair are all variable expenses because they normally are net set rates every month. Due to the changng of amounts these expenses fluxtuate not allowing thme to be a fixed expense like rent is.

4 0

2 years ago

Read 2 more answers

Eli and Marilyn ask Gracie to be the administrator of their will and the guardian of their children if they pass away before the

kobusy [5.1K]

Answer:

a. involve a high degree of trust and confidence.

Explanation:

A fiduciary relationship exist when an individual places responsibilities on the other party, to help him carry out duties or act for the benefit of the party. It is otherwise called a confidential relationship and it requires special trust, confidence and reliance.

6 0

3 years ago

Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entr

Tatiana [17]

Answer:

1. Prepaid insurance (Dr.) $6,300

Cash (Cr.) $6,300

2. Cash (Dr.) $15,300

Unearned Income (Cr.) $15,300

3. Purchases (Dr.) $1,750

Accounts payable (Cr.) $1,750

Cost of Goods Sold (Dr.) $1,620

Ending Inventory (Dr.) $130

Purchases (Cr.) $1,750

4. Prepaid office rent (Dr.) $6,300

Cash (Cr.) $6,300

Explanation:

The adjusting entry is a journal entry recorded at end of accounting period to adjust events or transactions to comply with the accrual concept.

The closing entries are journal entries required to close a transaction or event in the period. The purpose is to follow matching concept of accounting.

7 0

3 years ago

Tiny went back to his office after the meeting and began to crunch the numbers on the rapid inflator. At a price of $10 per unit

Artist 52 [7]

Solution and Explanation:

Part A - Inflatable divisions's Current Return on Investment = Yearly Earnings / Investment Cost * 100

There the Inflatable Division is Currently Earning $ 250,000 annually from an Asset base of $ 1,250,000

Therefore, ROI = $250000 / 1250000 * 100=20 \%$

Part B - Let the maximum variable cost be X.

Given that - 1. Selling Price per Unit = $10 , 2. No of Units to be produced = 40000 , 3. Annual Fixed Cost = $ 140000

Therefore , ROI = Current Earning + New Earning / Current Assets + New Assets

20% = $250000+[(10-\mathrm{X}) * 40000-\underline{140000}] / 1250000+100000$

Solve for X getting, X = 6

Therefore maximum variable cost it can incur without change in current ROI is $ 6 per unit

Resulting Contribution Margin per Unit = SP - VC = $10 minus $6 = $4 per unit

part C - Minimum Transfer Lightning division Should charge

Given Information - Capacity of Lightning division is 150000 units and Utilized capacity is 135000 units. Therefore Spare capacity is 15000 units .Also Market Price of Product of Lightning division is $ 5 and Variable cost is $3 per unit.

So for the First 15000 units of Requirement of Inflatable division - Transfer Price should be Variable cost i.e $ 3 per unit because Lightning division has spare capacity in this.

For the next 25000 units of requirement of Inflatable division - Transfer Price should be Market Price i.e $ 5 per unit as Lightning division has to reduce is external sale.

Therefore Minimum TP = 1 $5000 * 3+25000 * 5 / 40000=\$ 4.25$ per Unit

Part D - No, Here Tiny offers to transfer $4 ( $6 - $2 ) per unit to Lightning division. However the minimum TP Lightning should get is 4.25 per unit and if less than this TP is offered by Tiny it will lead to loss in the Lightning Division.

3 0

3 years ago