A.
Just having more workers does not necessarily make the labor force productive. However, economies of scales such as managerial economies of scales could allow for more efficient allocation of resources, technological advancement makes workers more productive as they operate machinery, and training reduces the chances of mistakes and raises their efficiency.
Answer:
The premium amount should it charge is $690
Explanation:
The X values would be 0 1,000 5,000 10,000
Since, we have to deduct the $500 and add the premium amount
So, new X values would be 100 600 4,600 9,600
And, the probability would be 0.82, 0.08, 0.08, and 0.02
So, the premium amount would be equal to
= 100 × 0.82 + 600 × 0.08 + 4,600 × 0.08 + 9,600 × 0.02
= 82 + 48 + 368 + 192
= $690
Answer:
Year 1 - $192,000
Year 2 - = $153,600
Year 3 - $122,880
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2
Depreciation expense in the first year = 0.2 x $960,000 = $192,000
Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000
Depreciation expense in year 2 = 0.2 x $768,000 = $153,600
Book value in year 3 = $768,000 - $153,600 = $614,400
Depreciation expense in year 3 = 0.2 x $614,400 = $122,880
I hope my answer helps you
Answer:
a) = 40660 units
b) = $335,445
c) = 58242 units
Explanation:
Lets summarize the information first,
F.C = $185,000
Direct Material (DM) = $3.20
Direct Labor (DL) = $6.00/hr or 6/12 = $0.5/product
Selling Price (SP) = $8.25
For a)
Break Even qty = F.C/Contribution Margin (CM)
CM = SP - (DM +DL per product) = 8.25 - (3.2 + 0.5) = $4.55
Break even qty = 185000 / 4.55 = 40659.3 or 40660 units
For b)
The break even qty does not change with sales so at 55000 units of sale the qty required for B.E is still 40660 units thus B.E Sales = 40660* 8.25
Break even sales = $335,445
For c)
This can be calculated by factoring target profit into the fixed costs so,
Quantity @ target profit = F.C + Target profit / C.M
So,
Quantity @ target profit = 185000 + 80000 / 4.55 = 58242 units rounded off.
Answer:
Equivalent units of production = 10,500
Explanation:
Given:
Complete production = 8,000 units
Ending work in process = 5,000 units
Complete ending work in process = 50% = 50 / 100 = 0.50
Equivalent units of production = ?
Computation of equivalent units of production:
Equivalent units of production = Complete production + [Ending work in process × Complete ending work in process]
Equivalent units of production = 8,000 + [5,000 × 0.50]
Equivalent units of production = 8,000 + 2,500
Equivalent units of production = 10,500