Answer:
$30,000
Explanation:
Opportunity costs refers to the incomes or benefits a person, business or investor loses or forgone when one alternative is chosen over another.
Since Kelvin will lose earnings of $30,000 a year from a full-time job if Kevin decides to attend college, this $30,000 a year is therefore the opportunity cost.
Answer:
The incremental cost is $198,000
Explanation:
Given;
Current cost per unit to manufacture = 66,000 units
Direct materials = $5.00
Direct labor= $9.00
Overhead = $10.00
Total cost per unit = $24.00
Incremental costs = $1,254,000 - $1,056,000 = $198,000
Answer:
Instructions are below.
Explanation:
We weren't provided with enough information to answer the request. <u>But, I will give an example and formulas to guide an answer.</u>
<u>For example:</u>
Production in units:
May=20,000
June= 22,000
Beginning inventory of direct materials= 8,000
<u>To calculate the purchase for May, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 20,000*7 + (22,000*7)*0.29 - 8,000
Purchases= 176,660 pounds
Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
Answer: $45,600
Explanation:
The Implicit cost is the opportunity cost. In other words, it is cost that was incurred because a revenue opportunity was sacrificed.
Sam sacrificed his salary as a pilot, his interest payment and the building he could be renting out.
His total implicit cost is;
= 40,000 + (10,000 * 6%) + 5,000
= $45,600
