X = 10.71 rounded to the hundredth
Answer:
Ending Inventory = $10,000
Explanation:
Calculating the ending inventory using the lower of cost and net realizable value (NRV):
It means we have to take the inventory cost, which is lower between the original cost and net realizable value. Therefore, for Model A -
Inventory Quantity × Unit Cost (Cost or NRV which is lower) = Total ending inventory cost
100 × $ 100 = $10,000
(We have used the original cost as it is lower than NRV cost)
Answer:
The weighted average unit contribution is $81 per unit.
Explanation:
The contribution per unit is the amount each unit contributes to covering the fixed costs. It is calculated by deducting the variable cost per unit from the selling price per unit.
The weighted average unit contribution is used when there are more than one product that a company produces and is used in calculating the overall or composite break even point. The weighted average unit contribution is the overall unit contribution for all of the products of the company according to their weights in the sales mix.
For a company that produces two products,
Weighted average unit contribution = Contribution per unit of Product A * Weight of Product A in sales mix + Contribution per unit of Product B * Weight of Product B is sales mix
Weighted average unit contribution = (150 - 90) * 0.3 + (195 - 105) * 0.7
Weighted average unit contribution = $81 per unit
Answer:
$100
Explanation:
Alto's share value = (2,400 × $24) = $57,600
Alto's total value = Share value + Incremental value of acquisition = $57,600 + $5,500 = $63,100
Net present value (NPV) = Alto's total value - Cost of acquisition = $63,100 - $63,000 = $100
Therefore, the net present value of acquiring Alto to Solo is $100.