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LekaFEV [45]
3 years ago
11

Handy hiking produces backpacks. In 2007, its highest and lowest production levels occurred in july and january, respectively. I

n july, it produced 4,000 backpacks at a total cost of $110,000. In january, it produced 2,500 backpacks at a total cost of $87,500. Using the high/low method, the average variable cost of producing a backpack was:
Business
1 answer:
kari74 [83]3 years ago
6 0

Answer: The average variable cost of producing a backpack is $15.

The formula for calculating the variable cost per unit using the high/low method is:

Average Variable Cost = \frac{y_{2} - y_{1}}{x_{2} - x_{1}}

where

y₂  : cost at highest level of activity

y₁  : cost at lowest level of activity

x₂  : number of units produced at highest level of activity

x₁  : number of units produced at lowest level of activity

Substituting the values from the question in the formula we get,

Average Variable Cost = \frac{110000 - 87500}{4000 - 2500}

Average Variable Cost = \frac{22500}{1500}

Average Variable Cost = 15

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Question Completion:

A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement

B)Decrease Net Cash from Operations on the Cash Flow Statement

C)Increase Net Cash from Operations on the Cash Flow Statement

D)Just impact the balance sheet

Answer:

C)Increase Net Cash from Operations on the Cash Flow Statement

Explanation:

When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income.  In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects.  So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.

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The IPO process involves several entities, such as the issuing company, institutional investors, brokers, lawyers, regulators, r
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Answer:

The IPO Process

One of the underwriters in the IPO deal described above is.

a. J.P. Morgan Securities Inc.

Explanation:

J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada.  An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities.  The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.

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3 years ago
A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance s
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Answer: b. an asset for the bank and a liability for Kellie's Print Shop. The loan does not increase the money supply.

Explanation:

Banks make money by loaning out money to people and companies. This means that loans are an asset to banks because it enables them to generate cash.

Kellie's Print Shop will have to pay back to loan however which means that it is a liability to them because they owe the bank.

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While implementing an affirmative action plan, an employer is expected to do all of the following except:establish objectives th
Zigmanuir [339]

Answer:

set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.

Explanation:

Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

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I. Establish objectives that can be met by applying good faith efforts.

II. Make all employment decisions in a nondiscriminatory manner.

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Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabricatio
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Answer:

b. $1,500

Explanation:

The computation of the total amount of manufacturing overhead is shown below:

= Assembly department + Fabrication department

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= $1,200

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= $300

So, the total manufacturing overhead would be

= $1,200 + $300

= $1,500

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3 years ago
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