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Tom [10]
3 years ago
10

During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and sold 1,800 units. Mazer inc

urred variable product cost of $4 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $6 per unit. Determine the amount of gross margin Mazer would report if the company uses absorption costing.
Business
1 answer:
Crazy boy [7]3 years ago
5 0

Answer:  The amount of gross margin Mazer would report if the company uses absorption costing is $1350.

Explanation:

Given that,

Mazer Manufacturing Company produced = 2,000 units of inventory

Units Sold = 1,800 units

Variable product cost = $4 per unit

Fixed manufacturing overhead cost =  $2,500

Sales price of the products = $6 per unit

Fixed manufacturing cost per unit = \frac{Total\ cost}{units\ produced}

= \frac{2500}{2000}

= $1.25 per unit

Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit

= 4 + 1.25

= $5.25

∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold

= Units sold × sales price - Units sold × Unit Product cost under Absorption costing

= 1800 × 6 - 1800 × 5.25

= 10800 - 9450

= $1350

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Answer:

54.55%

Explanation:

The purchasing price is $55

Price has increased to $85.

The monetary increase = $85 - $55 = $30

As a percentage , the increase will be

=$30/$55 x 100

=0.545454 x 100

=54.5454%

=54.55%

3 0
3 years ago
Miranda works 40 hours a week at a wage rate of ​$25. Thus, her total weekly income is ​$1000. On this​ income, she pays total t
Vlad1618 [11]

Answer:

15%

Explanation:

If Miranda works 40 hours a week at a wage rate of ​$25. and she ​however calculates that on the last hour that she​ works, she pays ​$3.75. then her marginal tax rate is derived as follows

<em>The marginal tax rate is the incremental tax paid on incremental income.</em>

From the scenario, we are given the following:

Weekly wage rate is $25.

Weekly tax pay is $3.75

Hence, Marginal tax rate  can be computed as = $3.75 / $25 = 15%

8 0
3 years ago
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 77,000 shares authori
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Answer:

See the explanation below:

Explanation:

1. Prepare journal entries to record the following transactions for Sherman Systems

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<u>Details                                                            Dr ($)               Cr ($)   </u>

Treasury Stock (5,500 × 30)                         165,000

Cash                                                                                      165,000

<u><em>To record the repurchase of own common stock                            </em></u>

b. Sold 1,125 treasury shares on November 1 for $36 cash per share.

<u>Details                                                            Dr ($)               Cr ($)     </u>

Cash (1,125 × 36)                                            40,500

Treasury Stock (1,125 × 30)                                                  33,750

Paid-in Capital from Sale of Treasury Stock                        6,750

<em><u>To record the sale of treasury stock.                                                      </u></em>

c. Sold all remaining treasury shares on November 25 for $25 cash per share.

<u>Details                                                                Dr ($)               Cr ($)     </u>

Cash (4,375 × 25)                                                109,375

Paid-in Capital from Sale of Treasury Stock       6,750

Retained Earnings                                                15,125

Treasury Stock 99,000 (4,375 × 30)                                       131,250

<em><u> To record the sale of the remaining treasury shares                               </u></em>

Kindly note that there is a balance of $6,750 in the Treasury Stock Paid-in Capital account. Since it is utilized, the remaining deficit will show in Retained Earnings.

2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.

<u>Details                                                                                            $     </u>

77,000 issued authorized common stock–$10 par value    770,000

Paid-in capital in excess of par value, common stock           241,000

Retained earnings                                                                    904,000

Treasury stock                                                                        <u> (165,000)</u>

Total stockholders’ equity                                                      <u>1,750,000</u>

3 0
3 years ago
Suppose that you run a house-painting company and currently have 2 workers painting a total of 4 houses per month. If you hire a
andrew11 [14]

Answer:

b. set in when the fifth worker is hired

After this point additional worker return will be lower.

Explanation:

Trhe diminishing return are the moment at which the marginal increase in production decrease.

In other words, adding a new resource provide less return than his predecessor.

Marginal

2 do 4 hours

3 do 6 houses (marginal 6 - 4 =    2)

4 do 9 houses (marginal 9 - 6 =    3)

5 do 13 houses (marginal 13 - 9 = 4)

6 do 15 houses (marginal 15 - 13 = 2)

the marginal output decrease from 4 to 2 the returns decreased.

5 0
2 years ago
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julia-pushkina [17]

Answer:

- BEP in unit: 4,000 units;

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Explanation:

Please find detailed calculations as below:

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- BEP in units if sale price to decrease: Fixed cost/ Margin earned by one product = 4,000,000/(2,500 - 2,000) = 8,000.

4 0
3 years ago
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