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emmasim [6.3K]
2 years ago
7

An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Da

ta concerning those products appear below:
LN JQ RQ
Selling price per unit $ 161.88 $ 350.41 $ 446.71
Variable cost per unit $ 116.12 $ 279.11 $ 338.71
Minutes on the constraint 2.60 4.60 7.50
Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-09-13
A. LN, JQ, RQ
B. RQ, LN, JQ
C. RQ, JQ, LN
D. JQ, RQ, LN
Business
1 answer:
Maru [420]2 years ago
4 0

Answer:A. LN, JQ, RQ

Explanation:

To know the current profitability, we need to determine the contribution margin unit  by the minutes on the constraints .

a) For LN  

Contribution by unit =  Selling price per unit- Variable cost per unit

$ 161.88 -$116.12 = $45.76

Contribution by the minutes = Contribution by unit / Minutes on the constraint

= $45.76/ 2.60 = 17.60

B) For JQ

Contribution by unit =  Selling price per unit- Variable cost per unit

$ 350.41 -$279.11 = $71.3

Contribution by the minutes = Contribution by unit / Minutes on the constraint

= $71.3/ 4.60 = 15.50

c) For RQ  

Contribution by unit =  Selling price per unit- Variable cost per unit

$ 446.71 -$338.71 = $108

Contribution by the minutes = Contribution by unit / Minutes on the constraint

= $108/ 7.50 = 14.40

In order of their current profitability from most profitable to least profitable, We have LN with 17.60, next JQ with 15.50 and the least RQ with 14.40  

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Prepare journal entries to record these transactions. (If no entry is required, select "No Entry" for the account titles and ent
Oxana [17]

Answer:

a.

Debit Accumulated depreciation account $49,500

Credit Delivery equipment asset $49,500

b.

Debit Accumulated depreciation account $36,510

Debit Loss on asset disposal  $12,990

Credit Delivery equipment asset $49,500

Explanation:

a. The cost of delivery equipment was $49,500 and its Accumulated depreciation is also $49,500 => there is no gain or loss on the disposal.

The entry is:

Debit Accumulated depreciation account $49,500

Credit Delivery equipment asset $49,500

b.

Calculating the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges: $49,500 - $36,510 = $12,990 > 0

The company will record the loss on the disposal by the entry:

Debit Accumulated depreciation account $36,510

Debit Loss on asset disposal  $12,990

Credit Delivery equipment asset $49,500

5 0
2 years ago
The demand for loanable funds is _______ sloping because _______ respond to lower interest rates by _______ their quantity deman
jarptica [38.1K]

Answer:

The answer is a. downward; investors; increasing

Explanation:

The lower the interest rate, the greater the desire for loanable funds. Similarly, at higher interest rates,  less funding demanded.

8 0
2 years ago
I have $65,000 that I need to invest but I want to make more than the bank is offering. Where can I get a high return on a short
pickupchik [31]

Answer:

Several low-risk portfolios With the higher returns:

  1. Municipal Bonds.
  2. Credit Card Rewards.
  3. Annuities.
  4. Savings Bonds.
  5. Cash Value Life Insurance.
  6. Bank Bonuses.

Explanation:

  1. Municipal Bonds: Municipal bonds are loans made to local authorities by the creditors. Cities, territories, districts, or other municipalities.
  2. Credit card rewards: Point incentives are given based on each amount you invest-one point per dollar, for example. Usually, points can be exchanged for products in the online shopping store of the incentive scheme.
  3. Annuities: Annuities are insurance contracts that pledge either instantly or in the future to pay you a steady income. You may purchase a lump sum annuity or a sequence of installments.
  4. Saving bonds: Savings Bonds are US circulated treasury tools. Treasury Department to help pay for the spending requirements of the U.S. government. They are priced at face value.
  5. Cash-value life insurance: Cash value protection is long term life insurance since it provides cover for the existence of the policyholder. Cash value insurance historically has lower premiums than term life insurance because of the cash value factor.
  6. Bank Bonuses: Bank rewards are monetary incentives anytime you opening a new deposit or checking account. You would have to set up paper checks with the bank to hold the profile up for at least a couple of years to apply for this one-time bonus.
8 0
2 years ago
Umbarra Company bonds have a stated coupon rate of 5% and pay interest on an annual basis. They mature in 18 years and have a pa
Kay [80]

Answer:

Value of Bond =$718.8

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate  

Value of Bond = PV of interest + PV of RV

The PV of interest payment

A ×(1- (1+r)^(-n))/r

Interest payment = 5%× 1000 = 50

PV = 50× (1- 1.08^(-18))/0.08 = 468.59

PV of redemption value  

PV = RV× (1+r)^(-n)

PV = 1000× 1.18^(-18) = 250.24

The value of bond = 468.59 + 250.24= 718.84

The value of Bond = $718.84

8 0
1 year ago
Pat bought 5 pounds of apples. How many pounds of pears could Pat have bought for the same amount of money?
Travka [436]

Answer:

0.33 pounds of pears

Explanation:

Let the price of 1 pound of apple (Pa) be =  $1

1. So, price / pound of pear (Pp) = 0.5 more = $1 + $0.5 = $1.5

Expenditure (E) on 5 pounds of apples = P x Q =  5 x $1 = $5

Pears pounds purchase-able by same amount i.e $5 = E/ Pp = 5 /1.5= $0.33

2. ∵ Pa = $1 , ∴ Pp = 1.5 times = $1.5

E on 5 Pa = $5

Pears pounds purchase-able by same amount i.e $5 = E/ Pp = 5 /1.5= $0.33

3 0
2 years ago
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