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3 years ago

What happens if a product has a negative contribution margin?

1 answer:

4 0

Read from this following website this will answer your question it answered mine.
If this is helpful plz tell me it will tell you all about your question.

http://smallbusiness.chron.com/happens-contribution-margin-company-negative-22905.html

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Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The

dlinn [17]

Answer:

Selling price= 240*1.4= $336

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (252,000/30,000) + 2.1

Predetermined manufacturing overhead rate= $10.5 per machine hour

Job T687:

Number of units in the job 10

Total machine-hours 30

Direct materials $ 675

Direct labor cost $1,050

Now, we need to allocate overhead and determine the total cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 10.5*30= $315

Total cost= 675 + 1,050 + 315= $2,040

Finally, the unitary cost and selling price:

Unitary cost= 2,040/10= $240

Selling price= 240*1.4= $336

3 0

3 years ago

What are three things not to do while driving and three things to do while driving?

Verdich [7]

Do not do

text, drink, speed

do

watch road, hands on wheel, be safe

6 0

3 years ago

Read 2 more answers

Grouper Inc. is involved in a lawsuit at December 31, 2020. Prepare the December 31 entry assuming it is probable that Grouper w

goldenfox [79]

Answer:

Grouper Inc. is involved in a lawsuit at December 31, 2020

It is given that Grouper will be liable for $863,600 as a result of this suit. Therefore, the journal entry for this situation is as follows;

On December 31, 2020

Lawsuit loss A/c Dr. $863,600

To Lawsuit liability $863,600

(To record the lawsuit loss of the Grouper Inc.)

8 0

3 years ago

I will pay 5$ to the who solve it

elena55 [62]

Answer:

a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:

= $20.

b. The price that the company should sell the new toy at if it prices using competitive pricing is:

= $22.50 (average of competitors' prices)

c. The price that the company should sell the new toy at if it prices using penetration pricing is:

= $20 (lowest market price)

d. The price that the company should sell the new toy at if it prices using price skimming is:

= $25.

Explanation:

a) Data and Calculations:

Cost of producing a new toy = $10

Competitors' prices are:

Product A – $25

Product B – $20

Product C – $23

Product D– $22

Total = $90

Average price = $22.50 ($90/4)

Cost = $10

Markup 10 ($10 * 100%)

Price = $20

b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price. The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits. Competitors can wage price wars to discourage new entrants into their markets. Many pricing methods are in use, depending on the prevailing market realities.

4 0

3 years ago

Explain what is happening during each phase of the cycle with: I. output, II. employment III. and inflation

Ludmilka [50]

Answer:

During each phase of the economic cycle of Recession and Expansion, the following economic variables fluctuate, accordingly:

I. Output: During Recession, production output reduces. But, during expansion, product output rises with rising income, employment, and even stable inflation.

II. Employment: During phases of economic Expansion, employment rises, while it contracts during the phases of Recession.

III. Inflation: Due to rising income and output during economic expansionary periods, inflation rate also rises. It reduces when the economy enters a recession.

Explanation:

Business or Economic Cycle describes the recurrent, but not periodic, sequence of changes in the aggregate economic activities of a nation. It usually cascades between the spectrum of expansion and recession. This means that there is an alternation of the phases of economic cycle between expansion and contraction (recession) when the aggregate economic activities may rise or decline due to the equal movement of economic variables like the GDP output, employment, income, and sales.

5 0

3 years ago