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s2008m [1.1K]
3 years ago
10

The following per unit cost information is available: direct materials $36, direct labor $24, variable manufacturing overhead $1

8, fixed manufacturing overhead $40, variable selling and administrative expenses $14, and fixed selling and administrative expenses $28. Its desired ROI per unit is $30. Compute its markup percentage using a total-cost approach
Business
1 answer:
oksian1 [2.3K]3 years ago
7 0

Answer:

Mark−up percentage = 18.75%

Explanation:

Total manufacturing cost= Direct material + Direct labor  + Variable overhead + Fixed overhead

= $36 + $24 + $18 + $40

= $118

Hence, the total manufacturing cost is $118.

Total selling cost = Fixed selling cost + Variable selling cost

Total selling cost = $28 + $14

Total selling cost = $42

Hence, the total selling cost is $42

Total cost = Total Manufacturing cost + Total selling cost

Total cost = $118 + $42

Total cost = $160

Mark−up percentage = ROI / Total cost * 100

Mark−up percentage = $30 / $160 * 100

Mark−up percentage = 0.1875 * 100

Mark−up percentage = 18.75%

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Answer:

$21,796.14

Explanation:

Use the Time Value of Money techniques to calculate the amount of each installment (PMT)

PV = $250,000

i =  6 %

n = 20

P/yr = 1

FV = $0

PMT = ?

Using a Financial calculator to input the values as above, each annual instalment/payment will be $21,796.14.

8 0
3 years ago
The following data about Atlantis Trading Inc. is available. What is Atlantis’s cash flow from operating activities? Items Amoun
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B

Explanation:

7 0
2 years ago
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20.While reconciling the checking account, an accountant with Sonic Corporation noticed that an error had been made in recording
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Answer:

You need to deduct $450 from the company's cash balance. Since the check was received from a client, it covered an accounts receivable, so the adjusting entry should be as follows:

XX/YY, adjusting entry to reconcile checking account:

Dr Accounts receivable 450

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8 0
3 years ago
If the demand for loans increases, the interest rate will fall.<br><br> True or false
guajiro [1.7K]

Answer:

false

Explanation:

Interest is the cost of using credit. The applicable interest rate determines this cost.  Like most other commodities, interest rates are subject to the forces of demand and supply.

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8 0
3 years ago
Beginning inventory 0
Rama09 [41]

Answer:

a) The unit product cost under absorption costing is $51.

b) Income Statement for May:

Sales Revenue           $3,564,000

Cost of goods sold      2,244,000

Gross profit                $1,320,000

Selling and admin.

expenses                      650,000

Net operating income $670,000

Explanation:

a) Data and Calculations:

Beginning inventory 0

Units produced  49,000

Units sold           44,000

Ending inventory 5,000

Selling price per unit $81

Selling and administrative expenses:

Variable per unit $2

Fixed (total) $562,000

Manufacturing costs:

Direct materials cost per unit $18

Direct labor cost per unit         $9

Variable manufacturing

 overhead cost per unit          $4

Total direct costs per unit     $31

Fixed manufacturing overhead cost (total) $980,000

Unit product cost under absorption costing:

Manufacturing costs:

Direct materials cost per unit $18

Direct labor cost per unit         $9

Variable manufacturing

 overhead cost per unit          $4

Total direct costs per unit     $31

Fixed manufacturing

overhead cost (total)           $20 ($980,000/49,000)

Total unit product cost =      $51

Cost of goods manufactured = $2,499,000 ($51 * 49,000)

Cost of goods sold = $2,244,000 ($51 * 44,000)

Selling and administrative expenses = $650,000 ($2 * 44,000 + 562,000)

8 0
3 years ago
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