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Delvig [45]
3 years ago
12

Rugrat Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $190,000

Fixed manufacturing overhead in production 750,000 Ending fixed manufacturing overhead in inventory 50,000 Beginning variable manufacturing overhead in inventory $20,000 Variable manufacturing overhead in production 100,000 Ending variable manufacturing overhead in inventory 30,000 What is the difference between operating incomes under absorption costing and variable costing?
Business
1 answer:
inessss [21]3 years ago
8 0

Answer:

$140,000

Explanation:

The  difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:

Variable costing:

Fixed manufacturing overhead in production $750,000

Absorption costing:

The Fixed cost would be

= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory

= $190,000 + $750,000 - $50,000

= $890,000

So, the difference would be

= $890,000 - $750,000

= $140,000

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1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the se
weeeeeb [17]

Answer:

1) NOI = $90,240

2) NOI = 29,250

3) NOI = 133,260

4) NOI = 110,190

Explanation:

<em>The question is incomplete.</em>

<em />

<em>Sales (38,000 units)      $342,000     ($9.00 per unit)</em>

<em>Variable expenses        $228,000     ($6.00 per unit)</em>

<em>Contribution margin        $114,000     ($3.00 per unit)</em>

<em>Fixed expenses                $42,000 </em>

<em>Net operating income      $72,000</em>

1. What is the revised net operating income if unit sales increase by 16%

If unit sales increase, we can calculate this with a 16% increase in the contribution margin.

NOI=CM*(1+0.16)-FE=114,000*1.16-42,000=132,240-42,000\\\\NOI=90,240

2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?

A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .

Also, the contribution margin increases by 25%, for the increase in units sold (q).

NOI=CM_u*q-FE=(3.00-1.50)*(38,000*1.25)-42,000\\\\NOI=1.5*47,500-42,000=71,250-42,000\\\\NOI=29,250

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?

The selliing price will be added to the contribution margin per unit.

The units sold are increased 6%.

NOI=CMu*q-FE=(3.00+1.50)*38,000*1.06-(42,000+6,000)\\\\NOI=4.5*40,280-48,000=181,260-48,000\\\\NOI=133,260

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:

CM_u=P-VE_u=9.00*(1.20)-(6.00+0.30)=10.80-6.30=4.50

The units sold is now:

q'=(1-0.11)q=0.89q=0.89*38,000=33,820

Then, the net operating income becomes:

NOI=CM_u*q-FE=4.5*33,820-42,000=152,190-42,000\\\\NOI=110,190

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3 years ago
Researchers have discovered that "cyber-ostracism" by strangers elicits increased activity in the
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<span>Researchers have discovered that "cyber-ostracism" by strangers elicits increased activity in the anterior cingulate cortex. If a stranger experience cyber-ostracism that means that they have been excluded or have excluded someone which could create emotions of bitterness or loneliness, superiority. The anterior cingulate cortex controls human emotions, so it would be responsible for the making the stranger experience any feelings that occurs during cyber-ostracism.</span>
4 0
3 years ago
Jim has a full-time job and occasionally designs Web sites for individuals and businesses. At the end of the year, Jim files his
andre [41]

A) Yes, because the government requires individuals to report income earned from an employer and other sources.

His side gig was the equivalent of self contracting. He would definitely have to report of he made over $400.
6 0
3 years ago
Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to
prisoha [69]

Answer:

1,678660

Explanation:

6 0
3 years ago
Total revenue is best described as variable cost per unit times the number of units sold. the change in revenue when one additio
asambeis [7]

Answer:

price per unit times the number of units sold.

Explanation:

total revenue = total number of units sold x price per unit

the other options are incorrect because:

  • the variable cost per unit times the number of units sold = total variable costs
  • the change in revenue when one additional worker is hired = marginal revenue product of the additional worker
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