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LekaFEV [45]
3 years ago
11

Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's nor

mal activity level of 40,000 units per month is as follows:Direct materials $ 43.8Direct labor $ 10.4Variable manufacturing overhead $ 1.9Fixed manufacturing overhead $ 26.0Variable selling & administrative expense $ 2.4Fixed selling & administrative expense $ 13.8The normal selling price of the product is $104.4 per unit.An order has been received from an overseas customer for 1,650 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.8 less per unit on this order than on normal sales.Direct labor is a variable cost in this company.What is the contribution margin per unit on normal sales?
Business
1 answer:
Over [174]3 years ago
5 0

Answer:

Contribution margin per unit = $45.90

Contribution margin as sales percentage = 43.97%

Explanation:

As for the information provided we have,

Normal Sales = Normal sales per month, before the overseas order.

For such normal sales, the cost and sales data has been provided,

Selling price per unit = $104.40

Variable costs = Direct material + Direct Labor + Variable Manufacturing + Variable selling & Administrative

= $43.80 + $10.40 + $1.90 + $2.40 = $58.50

Contribution margin per unit = Selling price - Variable cost per unit = $104.40 - $58.50 = $45.90

Contribution margin as sales percentage = \frac{45.90}{104.40} \times 100 = 43.97%

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Answer:

A)

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More American goods should be exported to the UK, and less British goods should be imported to the US. Since the US dollar should be cheaper, American products are cheaper. The opposite will happen to British products.

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3 years ago
For this assignment, you will produce a marginal cost analysis graph and create a scenario that explains where the firm should s
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5 0
4 years ago
XYZ Co. provides the following information for the year 2016. Issue common stock for $28,000, sell factory machines for $3,000,
GREYUIT [131]

Answer:

Cash flow from investing= -$7,000

It is an outflow.

Explanation:

Cash from investing activity is defined as the cash in flow or outflow from purchase of long term assets such as property, equipment, investment in securities, sale of securities, and purchase of plant. It is the second section of the cash flow statement

Negative cash flow from investing activity might indicate heavy investment on long term growth of the company. For example investment in research and development.

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3 years ago
For the year ended December 31, Ion Corp. had cash inflows of $25,000 from the purchases, sales, andmaturities of held-to-maturi
labwork [276]

Answer:

amount of net cash from investing activities is $65000

Explanation:

given data

cash 1 = $25,000

cash 2 = $40,000

to find out

amount of net cash from investing activities

solution

we know that

to find out amount of net cash is cash flow from available for sale and held-to-maturity investments,  

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so that net amount cash from investing activity is equal = cash 1 + cash 2

net amount cash = 25000 + 40000

net amount cash  = $65000

hence amount of net cash from investing activities is $65000

3 0
3 years ago
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