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e-lub [12.9K]
3 years ago
10

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds

of the material, S5 uses 3 pounds of the material, and G9 uses 6 pounds of the material. Demand for all products is strong, but only 50,000 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G91 Selling price $ 160 $ 112 $ 210 Variable costs 96 85 144 1. Calculate the contribution margin per pound for each of the three products.
Business
1 answer:
antiseptic1488 [7]3 years ago
8 0

Answer:

The contribution margin per pound for K1, S5 and G9 is 16 per pound, 9 per pound , and 11 per pound respectively

Explanation:

Contribution margin : The contribution margin shows a difference between selling price and variable cost per pound

Mathematically,

Selling price per pound - Variable cost per pound = Contribution margin

Now, apply this equation for three products

For Product K1 = $160 - 96 = 64

For Product S5 = $112 - 85 = 27

For Product G9 = $210- 144 = 66

Now for computing the contribution margin per pound, divide each product contribution margin with each product pound

Mathematically,

For Product K1 = Contribution margin ÷ Pound

                        = 64 ÷ 4

                        = 16 per pound

For Product S5 =  Contribution margin ÷ Pound

                         = 27 ÷ 3

                         = 9 per pound

For Product G9 = Contribution margin ÷ Pound

                          = 66 ÷ 6

                          = 11 per pound

Thus, the contribution margin per pound for K1, S5 and G9 is 16 per pound, 9 per pound , and 11 per pound respectively.

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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
ollegr [7]

Answer:

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

Explanation:

The journal entry is shown below;

Bad debt expense A/c Dr  $4,900

           To Allowance for doubtful debts  $4,900

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Net Credit sales × estimated percentage given  - credit balance of allowance for doubtful debts

= $920,000 × 0.6%  - $620

= $5,520 - $620

= $4,900

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3 years ago
Which of these are most likely to be victim of information systems incidents like hacking?
fenix001 [56]
C. Finacial is the answer.
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8 0
3 years ago
James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7
sweet-ann [11.9K]

Answer:

a.

Bond Price  = $563,333.90007 rounded off to $563,333.90

b.

Bond Price  = $502500

c.

Bond Price  = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12  =  0.02 or 2%    

 

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02]  + 502500 / (1+0.02)^14

Bond Price  = $563,333.90007 rounded off to $563,333.90

 

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12  =  0.03 or 3%    

 

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03]  + 502500 / (1+0.03)^14

Bond Price  = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12  =  0.0425 or 4.25%    

 

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price  = $437232.16025 rounded off to $437232.16

7 0
3 years ago
Production estimates for August for Jay Company are as follows:
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Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

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As we know that

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For Material B

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= $648,000

Therefore, the third option is correct

4 0
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