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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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Assuming that the MR Corporation has an inventory of 200 defective motors costing $450,000 to produce and $150,000 to repair, if

ella [17]

<u>Answer: </u>True

<u>Explanation:</u>

Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.

Net proceeds from sale of units = 425000 - 150000

=$275,000

It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.

6 0

3 years ago

On July 1, 2019, Noble, Inc. issued 9% bonds in the face amount of $10,000,000, which mature on July 1, 2025. The bonds were iss

gladu [14]

Answer:

$322,400

Explanation:

Calculation for At June 30, 2021, Noble's unamortized bond discount

First step is to calculate unamortized bond for 2019-2020

Unamortized bond 2019-2020= $9,560,000 + [($9,560,000 × .1) - ($10,000,000 × .09)]

Unamortized bond 2019-2020=$9,560,000 + [($9,560,000 - $900,000)]

Unamortized bond 2019-2020=$9,560,000 + $56,000

Unamortized bond 2019-2020= $9,616,000

Second step is to calculate Unamortized bond for 2020-2021

Unamortized bond 2020-2021= $9,616,000+ [( × $9,616,000.1) - ($10,000,000 × .09)]

Unamortized bond 2020-2021=$9,616,000 + ($961,600 - $900,000)

Unamortized bond 2020-2021 = $9,677,600

Now let calculate unamortized bond discount

Unamortized bond discount =$10,000,000 - $9,677,600

Unamortized bond discount = $322,400

Therefore At June 30, 2021, Noble's unamortized bond discount should be $322,400

4 0

3 years ago

TB Problem Qu. 15-131 (Algo) Clayborn Corporation's net cash provided by operating activities... Clayborn Corporation's net cash

melomori [17]

Answer:

See below

Explanation:

Clayborn Corporation

Determination of free cash flow

Free cash flow = Net cash provided by operating activities - Capital expenditure - Cash dividends paid

Free cash flow = $118,800 - $96,300 - $30,200

Free cash flow = -$7,700

Therefore, Clayborn corporation's free cash flow is -$7,700

8 0

3 years ago

"A Pre-Approach will occur twice in the selling cycle: once when you are doing the initial research to determine if this prospec

Likurg_2 [28]

Answer:

The correct answer is b. False

Explanation:

The selling cycle is a 7 steps approach:

prospecting,
pre-approach,
approach,
presentation,
meeting objections,
closing the sale,
and follow-up.

The pre-approach only occurs once in the cycle.

5 0

3 years ago

Karla's candle factory is considering two different machines. machine a is highly automated with fc of $25,000 and vc of $.1/can

ycow [4]

Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

<h3>What is manufacturing?</h3>

Manufacturing is the process of creating or producing items using equipment, labor, machines, tools, and chemical or biological processing or formulation.
It is the essence of the economy's secondary sector.
The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the transformation of raw materials from the primary sector into finished commodities on a big scale.

To find which option will Karla pick:

If the demand for Karla's candles is 25,000.
Total Cost in Machine A = 25000 + 0.1*25000
= $ 27500 Total

Therefore, Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

Know more about manufacturing here:

brainly.com/question/26320301

#SPJ4

The correct question is given below:

Karla's candle factory is considering two different manufacturing options.

Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.

Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

If the demand for Karla's candles is 25,000, which option should she pick?

3 0

1 year ago