Pederson Company reported the following: Manufacturing costs $ 2,800 Units manufactured 56,000 Units sold 44,000 units sold for
1 answer:
Answer:
Gross Profit Margin = 3297800
Explanation:
given data
Manufacturing costs = $2,800
Units manufactured = 56,000
Units sold = 44,000
Sale Price = $75 per unit
Beginning inventory = 0 units
solution
we get here first Manufacturing Cost per unit that is
Manufacturing Cost per unit = Manufacturing Cost ÷ Units Manufactured ....1
Manufacturing Cost per unit =
Manufacturing Cost per unit = $0.05
and Closing Stock will be
Closing Stock = Units Manufactured - unit sold ........2
Closing Stock = 56,000 - 44,000
Closing Stock = 12000 units
and
Closing Stock Value will be as
Closing Stock Value = Closing Stock × Manufacturing Cost per unit .........3
Closing Stock Value = 12000 × $0.05
Closing Stock Value = $600
and Sale Value will be
sale value = Units Sold × Sale Price per unit ............4
sale value = 44,000 × $75
sale value = $3300000
so Gross Profit Margin will be as
Gross Profit Margin = Sale Value + closing Stock value - Manufacturing cost - opening stock value ...................5
Gross Profit Margin = $3300000 + $600 - $2,800 - 0
Gross Profit Margin = 3297800
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Answer:
Explanation:
From the information given:
(a)
The total production available for the professional computers at the time Mexico uses all resources for production = 30
The total production of computer games at this time = 3 × 30 = 90
Thus, from above, the production possibility curve can be seen in the image attached below.
(b)
The opportunity cost of one professional computer is three computer games. This because, for them to produce one more computer, it is required that they give up three computer games.
(c)
Yes, it is subject to Increasing.
This because the opportunity cost of 1 computer = 3 games
For two computers = 2 × 3 games = 6 games
For three computers = 3 × 3 games = 9 games ... and so on.
(d)
Professional computer production is considered a Capital good.
(e)
Mexico should increase the production of professional computers because they help in more rapid economic growth.
