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3 years ago

Which one of the following statements is true?

Business

1 answer:

Alecsey [184]3 years ago

6 0

Answer:

b. A manufacturing company will normally have raw materials, work in process, and finished goods as inventory account classifications.

Explanation:

A manufacturing unit will generally follow, three step completion of goods while manufacturing, as in primary state the company requires raw material for processing it and making it finished good.

After that the goods are processed and as all goods require some further time to process, some goods remain in between some stage called, work in process, where some processing is done, and some is left.

The last stage is to become a finished good, once the goods are completed, it is called finished goods and then goods are aimed to be sold.

Therefore, correct statement is statement B.

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The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea

Rzqust [24]

Answer:

Profit maximising price = 48

Explanation:

Total Cost : C (x) = 8x + 3

Demand Curve : p (x) = 88 − 2x

Total Revenue = p (x). x = x (88 - 2x) = 88x - 2x^2

Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)

MC = d TC / d Q = d (8x + 3) / d x = 8

MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x

Equating MR & MC ,

88 - 4x = 8 , 88 - 8 = 4x

x = 80 / 4 , x = 20

Putting value in demand curve,

p = 88 - 2x = 88 - 2 (20) = 88 - 40

p = 48

3 0

3 years ago

Babe Ruth was a famous baseball player in the 1920s. He made a salary of $80,000 in 1930, which was considered outrageous becaus

ArbitrLikvidat [17]

Answer:

In real dollars, Babe Ruth's salary = $80,000 / 0.0645 (CPI 1930) = $1,240,000

Since Babe Ruth was the highest paid baseball player back then, if we compare his updated salary to Kershaw's salary, it represents only = $1,240,000 / $33,000,000 = 3.76%.

That means that most of the players' salary raise was due to other factors, not just inflation.

4 0

3 years ago

Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the fin

Ipatiy [6.2K]

Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are direct materials.

<h3>What are direct materials?</h3>

Those components pass into a manufactured product are called as Direct materials. Direct materials cost refers to the cost of direct materials which may be without problems recognized with the unit of production.

For example, the value of glass is an immediate substance cost in light bulb manufacturing.

Hence, Materials that become independent components of the finished product and whose cost can be easily and conveniently traced to the finished products are direct materials.

learn more about direct materials:

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2 years ago

Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con

Anastasy [175]

Here, we are decide the best option between making the part or buying the part.

a. Make or Buy Analysis

Particulars Make amount Buy amount

Direct Materials $4.50

Direct Labor $1.00

Overhead (80% of Direct Labor) $0.80

Cost to buy $4.70

Cost per unit $5.70  $4.70

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

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2 years ago

Juicy Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the mont

KatRina [158]

Answer: Please see explanation column for answer

Explanation:

Recasting the income statement to emphasize contribution margin.

Juicy Beauty Operating Income Statement, June 2017

Units sold 20,000

Revenues $200,000

Variable costs(subtract):

Variable manufacturing costs $110,000

Variable marketing costs $10,000

Total variable costs $120,000

Contribution margin $80,000

Fixed costs

fixed manufacturing costs 40,000

Fixed marketing and administrative costs 20,000

Total fixed cost $60,000

Operating income $20,000

Working for income statement above =

Contribution margin = Revenue -Total variable cost =$200,000- ($110,000 + $10,000) - $80,000

Operating income= Contribution margin - Total fixed cost = $80,000 - $($40,000 +$20,000) -=$20,000

2 The contribution margin percentage and breakeven point in units and revenues for June 2017.

Contribution margin percentage = ,Contribution margin/ Revenue x 100%

= $80,000/ $200,000 x 100= 40 %

Contribution margin per unit = ,Contribution margin/ units sold

80,000 / 20,000= $4 per unit

Break even point units = Total fixed cost/ ,Contribution margin per unit

= $60,000/ $4= 15,000units

Break even revenue=

we first calculate the selling price = Revenue / units sold = $200,000/ 20,000 =$10

Break even revenue=Break even units x per unit sold = $15,000 x $10 = $150,000.

3. Margin of safety = units sold - break even point unit

20,000 - 15,000 =5000 units

4. If the sales is 16,000 and tax is 30% , Net income is

Units sold 16,000

Revenue $160,000

Contribution margin $64,000

Total fixed cost - $60,000

Operation income $4,000

tax at 30 % - $ 1200

Net income $2,800

working

Revenue = units sold x sale per unit = 16,000 x $10 = $160,000

Contribution margin = Revenue x contribution margin percentage = $160,000 x 40% = $64,000

Operation income = contribution margin - fixed costs= $64,000 - $60,000 = $4000

Tax = 30% of 4000 = $1200

Net income = $4000 - $1200 = $2,800

3 0

3 years ago

Read 2 more answers