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2 years ago

Would you expect holding cost to go down with increases in maximum capacity?

Business

1 answer:

xxTIMURxx [149]2 years ago

3 0

Answer: The answer is given below

Explanation:

Holding costs are the costs that.has to do with the storage of inventory that were not sold. costs and they are storage space, price of damaged or spoilt goods, labor, and insurance.

It should be noted that with regard to holding cost, increasing peak capacity will be expected to reduce since the capacity is typically inversely proportional to the theory of the holding cost as there may be a reduction in the holding cost so as to increase the capacity.

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Bundling:__.

Cerrena [4.2K]

Answer:

Explanation:

Bundling is when separate products of a company are combined together and sold to customers usually at a lower price

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2 years ago

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the fir

Gwar [14]

Answer:

$18.29

Explanation:

Material Conversion

Units transferred to

the next department 7.400 7.400

Ending WIP

Materials 50% 1.900 950

Conversion Cost 35% 1.900 665

Equivalents Units Production 8.350 8.065

Cost of beginning work in process inventory $ 10.600 $ 12.800

Costs added during the period $ 142.100 $ 359.500

TOTAL COST $ 152.700 $ 372.300

Equivalents Units Production 8.350 8.065

Cost per equivalent unit $18,29 $46,16

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2 years ago

________ was the first secure payment intermediary allowing anyone to pay with credit cards and bank accounts without sharing hi

Sauron [17]

Papal was the first secure payment intermediary allowing anyone to pay with credit cards and bank accounts without sharing his or her financial information for online purchases.

A bank is a financial institution that has the authority to accept deposits and make loans. There are different types of banks such as retail banks, commercial banks, and investment banks.

The function of banks is to collect deposits from the public and lend them for the development of agriculture, industry, commerce, and commerce. Banks pay interest to depositors at lower interest rates and receive interest on loans at higher interest rates.

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1 year ago

Child Play Inc. manufactures electronic toys within a relevant range of 20,000 to 150,000 toys per year. Within this range, the

Ray Of Light [21]

Answer:

Toys produced 40,000 80,000 120,000

Total costs:

Total variable costs $720,000 $1,440,000 $2,160,000

Total fixed costs $600,000 $600,000 $600,000

Total costs $1,320,000 $2,040,000 $2,760,000

Cost per Unit

Variable cost $18 $18 $18

Fixed cost $15 $7.50 $5

Total cost $33 $25.50 $23

Fixed costs do not change with total output, they are the same regardless so the number of units produced. Variable costs change proportionally to any change in total output. If total output increases, variable costs will increase.

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2 years ago

A company produces 1,000 packages of cat food per month. The sales price is $4.00 per pack. Variable cost is $1.60 per unit,

spin [16.1K]

Answer:

B. Operating income will increase by $3,620 per month.

Explanation:

In this question, we have to compare the operating income between current and expected proposal which is shown below:

We know that,

Operating income = Sales - variable cost - fixed cost

where,

Sales = Selling price per unit × Number of units produced per month

= $4 × 1,000

= $4,000

Variable cost = Variable cost per unit × Number of units produced per month

= $1.60 × 1,000

= $1,600

And, the fixed cost is $1,800

Now put these values to the above formula

So, the value would be equal to

= $4,000 - $1,600 - $1,800

= $600

Now for expected proposal

Operating income = Sales - variable cost - fixed cost

where,

Sales = Selling price per unit × Number of units produced per month

= $8 × 1,000

= $8,000

Variable cost = Variable cost per unit × Number of units produced per month

= $1.80 × 1,000

= $1,800

And, the fixed cost is $1,800 + $180 = $1,980

Now put these values to the above formula

So, the value would be equal to

= $8,000 - $1,800 - $1,980

= $4,220

The difference would be

= $4,220 - $600

= $3,620

4 0

3 years ago