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3 years ago

Using conversion cost per equivalent unit is appropriate for many business that use process costing because:

1 answer:

7 0

I am definitely sure that correct answer is: Using conversion cost per equivalent unit is appropriate for many business that use process costing because direct labor and factory overhead enter the production process at the same rate. To calculate cost per equivalent unit you need to the total cost of production and divide by the number of units.

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The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per-

Ksenya-84 [330]

Answer:

contribution margin of nylon blankets = $64

contribution margin of wool blankets = $120

annual fixed costs = $743,000

sales mix = 75% nylon blankets, 25% wool blankets

weighted contribution margin = ($64 x 75%) + ($120 x 25%) = $78

if TBC wants ot make $115,000 in profits it must sell:

= ($743,000 + $115,000) / $78 = 11,000 units

TBC must sell 2,750 wool blankets and 8,250 nylon blankets.

The Blanket Company (TBC)

Income Statement

Sales revenue $1,804,000

Variable costs ($946,000)

Contribution margin $858,000

Fixed costs ($743,000)

Operating income $115,000

4 0

3 years ago

Why is a subsidized student loan more advantageous than a non-subsidized loan?

Anuta_ua [19.1K]

The federal government offers subsidized loans based on the student’s financial need when applying for aid through the Free Application for Federal Student Aid (FAFSA). The key components of a subsidized student loan (and the biggest benefits) are:

1. The U.S. Department of Education pays for any interest accrued while you are in school. To receive this benefit, you must be enrolled at least halftime.
2. You’ll also get a six-month grace period after graduation, meaning that any interest that accrues during your college career and six months afterward, is completely paid for.

Unsubsidized student loans, on the other hand, begin accruing interest from the date of your first loan disbursement, though you’re not required to pay that interest until you finish school. When you graduate, the amount of money that accrued during your education is simply added to the principal loan amount and you begin paying off that new amount. One benefit to taking out a federal unsubsidized loan is that you are not required to demonstrate financial need so the amount you can take out is much higher than a subsidized student loan. Additionally, unsubsidized federal student loans are available for both undergraduate and graduate students.

Federal subsidized and unsubsidized direct federal loans for undergraduates carry the same low, fixed interest rate, so it is generally a good idea to take out a subsidized loan before taking on additional debt with an unsubsidized loan. If you are planning on going back to school, subsidized loans can help save a lot of money in deferment since interest will not accrue.

5 0

3 years ago

A fad shifts the demand curve for a toy to the right. When the fad ends, the demand curve will shift back to the left. How are t

NARA [144]

The shifts in the demand curve directly affect the demand for labor for the toy manufacturer which means the rightward shift in the demand curve requires more labor whereas the leftward shift requires less labor.

<h3>What do you mean by labor?</h3>

Labor also called human labor is the workforce who are engaged in the production of a product. The requirements of the labor totally depend on the demand for the product.

When the demand curve shifts toward the right that means the demand for the toys getting increases which leads to more requirements for human labor and when the demand curve moves towards the left, this means a decrease in demand for toys which results in lesser requirements for human labor. This shows a direct effect on the manufacturer of toys regarding the demand for labor.

Therefore, the changing of shifts will affect the manufacturer's demand for labor in a direct manner.

Learn more about the demand curve in the related link:

brainly.com/question/1915798

#SPJ1

8 0

1 year ago

If Melisha can pay for her vehicle with a 4-year loan or with a lease with the same down payment and same interest rate, why wil

gladu [14]

The answer is;

Since the loan payment incorporates amortization. (Regardless of whether the financing cost is the equivalent on both the advance and the rent, the advance incorporates an additional sum for amortization that would enable Melisha to satisfy the auto after some time and claim it toward the finish of the advance time frame).

Hope it helps!

8 0

3 years ago

What is a financial responsibility only for what the owners of a corporation have invested.

ASHA 777 [7]

Limited liability is the term your looking for

7 0

3 years ago