Benoit company produces three products, a, b, and
2 answers:
Answer:
a) Contribution margin pound; $4.00 $2.80 $7.00
b) The company should order C then A then B
Explanation:
Justification on question (b)
Order C is advised be order by the company because it will yield the best then followed by Order A and then lastly Order B.
Kindly see my attached picture for detailed explanation on question (a).
Answer:
1. Contribution margin per pound
Product A = $4.00
Product B = $2.80
Product C = $7.00
2. Orders for product C should be accepted first as they yield the highest contribution margin, followed by product A, then Product B which have the second highest and least contribution margin respectively.
Explanation:
Given the following ;
selling price $ 80 $ 56 $ 70 variable expenses: direct materials 24 15 9
other variable expenses 24 27 40
total variable expenses 48 42 49 contribution margin $ 32 $ 14 $ 21 contribution margin ratio 40 % 25 % 30 %
Kindly see attached picture for detailed explanation.
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Answer:
Interest Expense $6,446,360
Interest Payable $7,000,000
Explanation:
Interest Expense for the year =
Issued amount * Effective interest rate *
$644,636,000 * 0.06 * 2/12 = $6,446,360
Interest Payable =
Face Value of the bond * Interest rate *
$600,000,000 * 0.07 * 2/12 = 7,000,000