What is the difference between gross and adjusted income?
1 answer:
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Answer: $2.6 per unit.
Explanation:
Given that,
Tons of cement produced and sold = 225,000
Sales revenue = $1,035,000
Variable manufacturing expense = $421,000
Fixed manufacturing expense = $280,000
Variable selling and administrative expense = $29,000
Fixed selling and administrative expense = $220,000
Net operating income = $85,000
Sales price per unit:
=
=
= $4.6 per unit
Variable cost per unit:
=
=
= $2 per unit
Contribution margin = Sales price per unit - Variable cost per unit
= $4.6 - $2
= $2.6 per unit
Answer:
4.53%
Explanation:
Data provided in the question:
Expected return = ∑ (Return × probability)
Thus,
Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))
= 12.98%
Now,
Probability Return Probability × (Return-Expected Return)²
0.06 22 0.06 × (22% - 12.98%)² = 4.8816
0.92 13 0.92 × (13% - 12.98%)² = 0.000368
0.02 -15 0.02 × (-15% - 12.98%)² = 5.657608
========================================================
Total = 20.5396%
Standard deviation =
= √(20.5396)
= 4.53%