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qaws [65]
4 years ago
5

Macy Corporation's relevant range of activity is 8,100 units to 16,500 units. When it produces and sells 12,300 units, its avera

ge costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.95 Variable manufacturing overhead $ 1.95 Fixed manufacturing overhead $ 3.40 Fixed selling expense $ 1.25 Fixed administrative expense $ 0.95 Sales commissions $ 1.20 Variable administrative expense $ 0.85 If the selling price is $32.00 per unit, the contribution margin per unit sold is closest to:
Business
1 answer:
Bingel [31]4 years ago
6 0

Answer:

Contribution margin per unit = $18.55

Explanation:

Contribution margin = Net sales value - Variable cost per unit.

Variable cost per unit will be same as that of average variable cost, as is completely proportional to number of units.

Variable cost is 100% avoidable for the units not produced.

Thus,

Total Variable cost per unit shall be:

Direct material = $5.50

Direct Labor = $3.95

Variable manufacturing overhead = $1.95

Sales Commission = $1.20

Variable administrative expense = $0.85

Total variable cost = $13.45

Selling price per unit = $32.00

Therefore, contribution margin per unit = $32 - $13.45 = $18.55

You might be interested in
"Jen operates Jen's Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what
GarryVolchara [31]

Answer:

The federal government can regulate Jen's activity citing the supreme court rule of the government ability to regulate any activity interstate or intrastate that affects interstate commerce.

In the line of this argument it means that a farmer growing and of goods affects interstate commerce.

The farmers best argument concerning the federal government regulating their activities due to interstate commerce is that his activities are purely local and although I don't believe any court will hear him out.

Explanation:

6 0
3 years ago
You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price
Lera25 [3.4K]

Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes upward to $65 so you lose only $5 but it falls than the stock would be $0

Hence, the break even price of this position is $65

Therefore by applying the above formula we can get the break even price and the same is to be considered

4 0
3 years ago
Star Corp. had the following accounts and balances in its general ledger as of December 31:
Alex

Answer:

=$ 25,500

Explanation:

cash equivalents will be petty cash + cash at bank

= 500+20,000+5000

=$ 25,500

Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.

Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.

8 0
4 years ago
According to the Bureau of Labor Statistics, the actual unemployment rate was 8.3% in February 2012 and the natural rate of unem
padilas [110]

According to the Bureau of Labor Statistics, the actual unemployment rate was 8.3% in February 2012 and the natural rate of unemployment was 5.2%. The<u> cyclical</u> unemployment rate was <u>3.1</u>%.

<u>Explanation:</u>

Unemployment is when an individual who is able to work and is also willing to work at the wage rate which is prevailing in the market, does not get work. There are some types of unemployment like cyclical, structural, frictional and so on.

Cyclical unemployment is the rate of unemployment that occurs in the different phases of the trade cycle. Because of high rate of actual unemployment rate in 2012, the cyclical rate of unemployment was also around 3%.

4 0
3 years ago
Redding Industrial Supply had common stock of $6,800 and retained earnings of $4,925 at the beginning of the year. At the end of
White raven [17]

Answer:

61.09 %

Explanation:

For computing the retention ratio we need to do the following calculations

Beginning Retained earnings = $4,925

And,

Net Income = $938

So, before dividend Retained earnings is

= $4,925 + $938

= $5,863

Now the total amount paid is

= before dividend Retained earnings - ending retained earnings

= $5,863 - $5,498

= $365

Now

The Dividend payout ratio is

= Dividend paid ÷ Net Income

= $365 ÷ $938

= 0.389126

And, finally

Retention ratio is

= 1 - Dividend payout ratio

= 1 - 0.389126

= 0.610874 or 61.09 %

4 0
3 years ago
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