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asambeis [7]
3 years ago
11

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor

$ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.30 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Business
1 answer:
Romashka [77]3 years ago
8 0

Answer:

Total indirect manufacturing cost= $23,750

Explanation:

Giving the following information:

Variable manufacturing overhead $1.25

Fixed manufacturing overhead $ 15,000

Production= 7,000 units are produced

<u>The indirect manufacturing cost is the sum of the total fixed overhead and total variable cost:</u>

<u></u>

Total indirect manufacturing cost= 15,000 + 7,000*1.25

Total indirect manufacturing cost= $23,750

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Answer:

The correct answer is C

Explanation:

Repositioning is states as altering or changing the position of the product in the customer minds as relative to the offerings of the product. It is very difficult as well as subtle procedure as the brand or the product needs or require to change the market understanding of the product.

In this case, the dairies would like to reposition the chocolate milk in the minds of the adult customers as they are trying to change the way adults think of chocolate milk.

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3 years ago
Suppose a bond has a $1,000 face value, a market price of $1,045.00, and pays a coupon of $80 annually. What is the bond's coupo
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Answer:

8%

Explanation:

The Coupon rate can be defined as the rate of interest that is paid by issuers of bond on the face value of the bond. This is the periodic interest rate that is paid by bond issuers to their purchasers.

For this question

The face value of the bond is 1000 dollars

The coupon is 80 dollars

Such that We have

80/1000

= 0.08

This is 8% coupon rate.

4 0
3 years ago
Consider the following year-end information for a company: Cost of goods sold $ 420,000 Sales revenue 800,000 Non Operating expe
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Answer:

$210,000.

Explanation:

Given:

Cost of goods sold = $420,000

Sales revenue = $800,000

Operating expenses = $170,000

Question asked:

What amount will the company report for operating income ?

Solution:

As we know, Operating Income = Gross Profit- Operating Expenses

First of all we will find gross profit,

Gross Profit = Net Sales – Cost of goods sold

                    = $800,000 -  $420,000

                    = $380,000

Now, Operating Income = Gross Profit- Operating Expenses

                                        = $380,000 -  $170,000

                                        = $210,000

Therefore, consider the following year-end information for a company, its Operating Income is  $210,000.

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4 years ago
Martha Manufacturing produces a single product that sells for $80. Variable costs per unit equal $32. The company expects total
garri49 [273]
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold

If they meet their goal, let's see how that would go:

(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000

24,000 is the profit they would make for hitting their goal.

Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units

We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!

Question 2: If they increase their expenses by 16,000, what is their new break even point?

(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833

Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)

Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?

10% Reduction in price: 8
80-8 = 72

10% increase in sales: 200
2000 + 200 = 2200

Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000

Since this number is positive, this is income. (D)
7 0
4 years ago
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