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natita [175]
3 years ago
5

Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O Un

it sales price $ 7 $ 4 $ 6 Unit variable costs 3 2 3 Total fixed costs are $340,000. The break-even point in composite units for the current sales mix (round to the nearest unit) is:
Business
1 answer:
damaskus [11]3 years ago
8 0

Answer:

Products    Selling price   Unit variable cost   Contribution per unit

                        $                           $                             $

M                      7                           3                             4

N                       6                          2                             4

O                       6                          3                             3

                        19                          8                            11

Break-even point in composite units

= <u>Total fixed cost</u>

  Contribution per unit

= <u>$340,000</u>

         $11

= 30,909 units

Break-even point for the current sales mix

M    3/6 x 30,909 units = 15,455 units

N     1/6 x 30,909 units = 5,151 units

O     2/6 x 30,909 units = 10,303 units

Explanation:

In this case, we need to calculate contribution per unit of each product by deducting the unit variable cost of each product from their respective selling prices. Then, we will obtain the break-even point in composite units by dividing the total fixed cost by overall contribution per unit.

Then, we will determine the break-even point for the current sales mix by multiplying the proportion of each product in the sales mix by the break-even point in composite units.

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The benefit of a flexible manufacturing system is that: a. the necessary skill levels of workers are reduced, allowing the firm
galben [10]

Answer:

<h2>The answer in this case would be the option b. or it captures the cost savings of economies of scale.</h2>

Explanation:

  • Flexible manufacturing system basically implies the ability of the production or manufacturing system to respond to any predictable or unforeseen changes.Hence,it measures the flexibility level of firms or companies to adjust the production or manufacturing mechanism or procedures to any current or potential changes.
  • In this regard,the firms or companies can alter the productive efficiency of the entire manufacturing or production system by employing innovative and productive technological inputs which can influence the productive capacity or efficiency level of the factors/inputs of production.This might be essential as various requirements of production or manufacturing can change periodically.
  • Flexible manufacturing system can essentially reduce the per unit production cost or the average cost of production of any firm or company by enhancing the productive efficiency of the factors/inputs of production thereby,increasing the overall production or output volume.This can lead to higher long term profitability of any firm or company.This phenomenon is known as Economies of Scale in Economics which refers to gradual reduction or decrease in the per unit production cost with a simultaneous increase in the production or output level.
8 0
3 years ago
For each market listed below, determine whether it is best characterized as a Cournot oligopoly, Stackelberg oligopoly, or Bertr
gladu [14]

Answer:

a. Cournot oligopoly

b. Stackelber oligopoly

c. Bertrand oligopoly

Explanation:

a.

In Cournot's oligopoly model, companies will make similar decisions to their competitors, including the amount produced by each company. A perfect competition situation occurs, where there is no differentiation and the balance is not influenced by market supply and demand, but by the action similar to the competitor, companies estimate how much each competitor will produce and thus determine their level of production to increase. your profits.

b.

Stackelberg's model is based on imperfect competition, meaning there is no cooperation between companies, whichever is the most recognized with the highest brand value and the most capable of leading the market will be responsible for establishing the quantity produced, and so the others will observe the lead company's decision to decide their production quantity from there.

c.

Bertrand's model is also characterized as imperfect competition, where there is no cooperation and differentiation between products, in this model the strategic focus is on price rather than quantity. Consumer buying behavior will be influenced by the company that sets the lowest price, so equilibrium will occur when companies set the same price.

4 0
3 years ago
Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items wit
White raven [17]

The correct statement is that the net salary of Lauren will be $623.52 after the deductions of tax withholding against her gross pay of $765.

So, the correct option that matches the statement quoted above is D. Calculations regarding the deduction of tax withholding are shown below.

<h3>Calculation of net salary</h3>

Net salary of Lauren can be calculated by subtracting all the given deductions from gross pay available in the hands of Lauren.

The withholding of taxes of Lauren will be calculated as,

\rm Security\ Tax= Gross\ Pay\ x\ rate\\\\\rm Security\ Tax= 765\ x\ 0.062\\\\\rm Security\ Tax= \$47.43

Calculating further,

\rm Medicare\ Tax\ = Gross\ Pay\ x\ rate\\\\\rm Medicare\ Tax\ = 765\ x\ 0.0145\\\\\rm Medicare\ Tax\ = \$11.09

and

\rm State\ Tax\ = Federal\ Tax\ x\ Rate \\\rm State\ Tax\ = 68\ x\ 0.22\\\\\rm State\ Tax\ = \$14.96

Now deducting the summation of tax withholding from the gross pay, we get net salary as,

\rm Net\ Pay= Gross\ Pay- Tax\ Withholding\\\\\rm Net\ Pay= 765-(14.96+11.09+47.43+68)\\\\\rm Net\ Pay= \$623.52

So, net pay of Lauren will be $623.52 for such period.

Hence, the correct option is D that the net salary of Lauren will be $623.52 after the deductions of tax withholding against her gross pay of $765.

Learn more about Net Salary here:

brainly.com/question/24017475

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vredina [299]

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I think the correct answer is option D. In a private company’s accounting system, inputs are transactions such as the cash flow statement and outputs are payroll taxes. Hope this answers the question.

6 0
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