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3 years ago

A__________produces finished-goods inventory in advance of customer demand using a forecast of sales.

Business

1 answer:

Korolek [52]3 years ago

5 0

Answer:

Push system.

Explanation:

A push system produces finished-goods inventory in advance of customer demand using a forecast of sales and as such it is categorized as a make to stock because the production of goods are not based on actual demand by the consumers.

Under a push system, manufacturing is strictly based on a projected production plan and the flow of information between the manufacturer and the market is in the same direction with those of raw materials used.

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XYZ produces a single product and has provided the following data for its most recent month of operations:

Blababa [14]

Answer: $197

Explanation:

With absorption costing, the fixed manufacturing costs are absorbed by the products which means that the product cost will include fixed costs related to manufacturing.

The absorption costing unit product cost is therefore:

= Direct materials + Direct Labor + Variable manufacturing overhead + Fixed manufacturing Overhead per unit

Fixed manufacturing overhead per unit is:

= 224,000 / 6,400 units

= $35 per unit

Absorption cost unit product cost = 72 + 80 + 10 + 35

= $197

8 0

3 years ago

Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would

katrin [286]

Answer:

Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.

Explanation:

The contribution margin is equal to: Revenue - Variable Costs.

We already know that the variable cost will be increased by $50 once new component is added, and that monthly sales are expected to increase by 500 units after that.

Depending on the price of the product, the amount sold, and the variable costs, we get the contribution margin, and this contribution margin will be exactly the same as the overall effect on the net operating income.

7 0

3 years ago

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the comp

Radda [10]

Answer:46795

Explanation:

7 0

3 years ago

Assume that potential projects X, Y and Z will each pay a total of $100,000 over 20 years. X pays $8,000 per year for 10 years a

Marrrta [24]

Answer:

The answer is Project X is the most attractive to an investor.

Explanation:

We can use the definition of Net Present Value (NPV) to solve this problem and figure out which would be the best investment.

Net present value is the present value of future money. In other words, over certain period of time, how much is your investment worth today. It takes into consideration cash inflow and outflow over that period of time as well as interest that could be earned on alternative investments if you had the money today. See attachment to see the NPV formula.

In the attachment, we calculate the NPV for each one of the projects using a rate of return i=3% for all of them. Any rate of return could be used as long as they are the same for all projects.

A positive NPV value means a good investment and the higher that number is the better the investment. In this case, we can see that Project X has the higher NPV of all the projects. Therefore, project X is the most attractive for an investor.

6 0

3 years ago

Tyson foods, the nation's largest poultry-processing company with profits of $403 million in 2004, was penalized for the deaths

Nitella [24]

The penalty in that case was just around $4 million.

$4 mil/$43 mil = .093 %

7 0

3 years ago