Answer:
160,000 units
Explanation:
Step 1 : Determine the Sales Mix
Bramble : Standard
60000 : 40000
3 : 2
Step 2 : Determine the Overall Break even Point
Break even Point = Fixed Cost ÷ Contribution per unit
= $2400000 ÷ $30
= 80,000
Step 3 : Determine break-even point for Standards
Standards Break even point = 80,000 x 2
= 160,000 units
Thus,
Bramble Corp would sell 160,000 units of Standards at the break-even point
Answer:
The president of Riggs has missed something.
She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.
Explanation:
<u>Cost of Manufacturing the Sails:</u>
Direct materials $93
Direct Labor $83
Total $173
The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.
Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.
Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity
<u>Conclusion:</u>
The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.
I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
0.17
Explanation:
The computation of the expected return on investment is shown below:
= (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1)
= (0.15× 0.50) + (0.25 × 0.30) + (0.10 × 0.20)
= 0.075 + 0.075 + 0.02
= 0.17
