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3 years ago

A company sells two products with information as follows:

Business

1 answer:

sattari [20]3 years ago

8 0

Answer:

True.

Explanation:

The Contribution margin i.e Sale price less Variable Cost per unit for product A is (15-4) is $11 & for product B is ( 21-13) is $8. for making 4 units of product A we need three machine hours, so if we divide units by machine hours only 0.9 unit of A can be made in an hour while we can made 5 units in 0.7 hours pf product B, so if we divide 5 by 0.7, approximately 7 unit of B can me made in an hour.

Thus, in the production of 1 hour we can make $10 from product A while we can make $ 57 from product B.

Product A Product B

S.P $15.00 $21.00

V.C $4.00 $13.00

Contribution Margin Per unit $11.00 $8.00

Units Produce Per hour Production 0.9 7

CM Per hour $10.27 $57.14

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The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past

Naddik [55]

Answer:

$633,000.

Explanation:

We use the High-low method to get the cost formula:

$\left[\begin{array}{ccc}High&14,250&710,000\\Low&9,250&570,000\\Diference&5,000&140,000\\\end{array}\right]$

This means 5,000 machine hours generate 140,000 labor cost

We divide and get the variable cost generate per machine hour:

Cost 140000

machine hours 5000

140,000/5,000 = 28

variable cost 28

Next, we use this to calculate the fixed cost:

total cost = variable cost + fixed cost

fixed cost = total cost - 28 X DL

High:

Total Cost 710,000

Variable 399,000 (14,250 x 28)

Fixed Cost 311,000

Low:

Total Cost 570,000

Variable 259,000 (9,250 x 28)

Fixed Cost 311,000

Now with the cost formula we solve for 11,500 machine hours

cost = 311,000 + 28 X Machine Hours

cost = 311,000 + 28 x 11,500

cost = 633,000

6 0

3 years ago

Miniaturization of Wisynco sales?

Dmitriy789 [7]

Explanation:

Wisynco Group Limited has 1,500 total employees across all of its locations and generates $195.02 million in sales (USD).

4 0

2 years ago

Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one y

mel-nik [20]

Answer:

I would rollover.

Explanation:

It is expected an increase in the interest rate in the near future. It is better to wait for the purchase of a long-term note because, once the interest rises, the price of the TS at 9 years will decrease to match the new yield.

While doing a rollover we can make the cash work at 5% and start yielding at 7% in six month. Once the expectation of higher interest rate vanish, I can consider moving to a long Treasury Bill, which most probably will have a lower cost than today.

5 0

3 years ago

Last year, Bailey bought a bond for $1,000 that promises to pay $110 a year. This year, a person who buys a bond for $1,000 rece

miv72 [106K]

Answer:

a. $880.

Explanation:

Bailey bought a bond for $1,000 that promises to pay $110 a year.

The interest rate was 110/1000 * 100 = 11%

This year, $1,000 receives $125 a year= 125/1000 * 100 = 12.5%. So, this year the interest rate now rises to 12.5%.

If Bailey were to sell his (old) bond, the price should be 110/12.5% = 110/0.125 = $880.

6 0

3 years ago

John owns a number of hot dog stands in New York City. He hires workers to sell hot dogs at his stands. Which of the following e

Genrish500 [490]

Answer:

The correct answer is option b.

Explanation:

John owns hot dog stands that sell hot dogs in New York City. He employs vendors to sell hot dogs at these stands.

A decrease in the price of hot dogs will reduce the revenue and profits earned by John. So John will hire fewer workers for his stands to reduce costs.

This will cause John's demand for hot dog vendors to decline.

3 0

3 years ago