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3 years ago

Production estimates for August are as follows:

Business

1 answer:

Minchanka [31]3 years ago

7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Production:

Estimated inventory (units), August 1 12,000

Desired inventory (units), August 31 2,000

Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per pound) 3Ibs

Direct material B ($15 per pound) 1/2 Ib

First, we need to determine the number of pounds required.

Production= sales + desired ending inventory - beginning inventory

Production= 75,000 + 2,000 - 12,000= 65,000 units

Purchases in pounds:

Direct material A= 65,000*3= 195,000

Direct material B= 65,000*0.5= 32,500

Total pounds= 227,500

Now, the cost of direct material:

Direct material cost:

Direct material A= 195,000*5= $975,000

Direct material B= 32,500*15= $487,500

Total= $1,462,500

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3 years ago

Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from

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Answer:

The net present value of the machine is $5530

Explanation:

Data provided in the question:

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3 years ago

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3 years ago

A firm expects to sell 25,500 units of its product at $16 per unit. pretax income is predicted to be $60,500. if the variable co

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A firm expects to sell 25,500 units of its product at $16 per unit. pretax income is predicted to be $60,500. If variable costs are $8 per unit, total fixed costs must be $143,500.

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Given,

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$Contribution Margin = (Selling Price Per Unit - Variable Cost Per Unit) * Units Sold$