Answer: The amount of gross margin Mazer would report if the company uses absorption costing is $1350.
Explanation:
Given that,
Mazer Manufacturing Company produced = 2,000 units of inventory
Units Sold = 1,800 units
Variable product cost = $4 per unit
Fixed manufacturing overhead cost = $2,500
Sales price of the products = $6 per unit
Fixed manufacturing cost per unit = 
= 
= $1.25 per unit
Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit
= 4 + 1.25
= $5.25
∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold
= Units sold × sales price - Units sold × Unit Product cost under Absorption costing
= 1800 × 6 - 1800 × 5.25
= 10800 - 9450
= $1350
<span>production coefficients.
factors of production.
production technologies.
production aggregates.</span>
Answer:
If Impala decides to buy from the external source , it would then save the fixed of $1,750
Decision: Impala should be buy from the external source
Explanation:
<em>To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.</em>
The relevant cash flows figures include:
- Internal variable cost of production
- External purchase price
- Savings in internal; fixed cost as result of buying outside
Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500
Increase in variable cost if purchased externally = 66500 - 66500 = 0
If Impala decides to buy from the external source , it would then save the fixed of $1,750
Decision: Impala should be buy from the external source
Answer:
(A) Rate earned on stockholder's equity=15%
(B) Rate earned on common stockhloder's equity= 16%
Explanation:
A company reports the following profitability analysis
Net income of $375,000
Preferred dividend of $75,000
Average stockhloder's equity of $2,500,000
Average common stockhloder's equity of $1,875,000
(A) The rate earned on stockholder's equity can be calculated as follows
= Net income/Average stockholders equity
= $375,000/$2,500,000
= 0.15×100
= 15%
(B) The rate earned on common stock holder's equity can be calculated as follows
= Net income-Preferred dividend/Average common equity
= $375,000-$75,000/$1,875,000
= $300,000/$1,875,000
= 0.16×100
= 16%
Hence the rate earned on stockholder's equity and common stockhloder's equity is 15% and 16% respectively.
Unemployment taxes are levied on the FIRST 7,000 of an employees wages paid each year.
So for the fulltime employees, you only count 7,000 of their salaries.
The corporation will pay taxes on 14,000 for full-time and 4,000 from part-time or 28,000 total. If the rate is 5.4%, the total taxes paid will be
28,000*5.4% = $1,512
