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yarga [219]
3 years ago
11

PB2.

Business
1 answer:
user100 [1]3 years ago
6 0

Answer:

1. Prime cost is $107,325

2. Conversion cost is $244,400

3. Product cost is $276,525

4. Period cost is $53,350

5. Material cost per unit is $43.04

6. Conversion cost per unit is $38.04

Explanation:

1. PRIME COST is the cost incurred by the company directly related to the production of goods. To compute the prime cost, let’s just simply add the direct material and the direct labor costs.

Direct material $32,125

+

Direct labor ($23.50 x 3,200 hrs) $75,200

= $107,325

2. CONVERSION COST is the expenses incurred by the company in turning their raw materials into finished goods. Formula of it is Direct labor + Manufacturing overhead.

Direct labor ($23.50 x 3,200 hrs) $75,200

+

Manufacturing overhead (75,200 x 225%) 169,200

= $244,400

3. PRODUCT COST is the combination of costs recorded in the inventory. It is usually the cost recognized as the cost of goods sold. This consist of the direct materials plus direct labor plus manufacturing overhead.

Product cost = DM + DL + MOH

= $32,125 + 75,200 + 169,200

= $276,525

4. PERIOD COST is the combination of Administrative expenses and the selling expenses.

Period cost = AE + SE

= $22,225 + $31,125

= $53,350

5. Material cost per unit is computed by using the formula:

= (DM + DL + MOH) / units produced

= ($32,125 + $75,200 + $169,200) / 6,425

= $43.04

6. Conversion cost is derived by dividing conversion cost over the units produced.

Conversion cost / units produced

= $244,400 / 6,425

= $38.04

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JulijaS [17]

Answer:

1,875 units.

Explanation:

Break-even is the point where a company neither generate profit not make loss, or we can say that it the sales at which the operating profit will be zero. It can be calculated for sales volume as-well-as dollar sales. Let's prepare a contribution income statement to calculate the break-even sales in quantity. We know that:

               EBIT / Operating Profit = (SP * Q) - (VC * Q) - Fixed Cost

where

SP = Selling Price

Q = Quantity / Units

VC = Variable cost

As it is understood that the operating profit at break-even is zero, simply put it in the above contribution income statements along with other figures given in the question.

⇒ 0 = (20 * Q) - (12 * Q) - 15,000

OR 15,000 / (20 - 12) = Q

⇒ Break-even units = Q = 1,875 units.

3 0
3 years ago
Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expe
Natali5045456 [20]

Answer:

c. $36,070

Explanation:

contribution margin ratio is the ratio of the contribution to sales of an entity for a given period.

contribution margin ratio= contribution/sales

where contribution is the difference between sales and the variable cost

Given;

sales = $137,000

contribution margin ratio = 61% = 0.61

0.61 = contribution/$137,000

contribution = $137,000 × 0.61

= $83,570

Net operating income is the difference between the contribution and the fixed cost.

Fixed cost = $47,500

Net operating income = $83,570 - $47,500

= $36,070

3 0
3 years ago
Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
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Answer:

The question is missing the options which are below:

A Real risk-free rate differences.  

B Tax effects.  

C Default risk differences.  

D Maturity risk differences.  

E Inflation differences.  

The correct answer is option C,default risk differences.

Explanation:

Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.

Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:

Balance sheet position

Profitability

Liquidity strength of the company

Macro-economic factors and some others.

Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest  when due.

Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.

3 0
2 years ago
Toyota has been working alongside us for years, but we just heard the bad news: they’re not renewing our electric vehicle (EV) c
klemol [59]

Answer:

The right approach is Option a (Bargaining power of suppliers).

Explanation:

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8 0
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Zortek Corp. budgets production of 380 units in January and 270 units in February. Each finished unit requires four pounds of ra
SOVA2 [1]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

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Prouction January= 380 units*4 pounds= 1520 punds

Production Febreaury= (270*4pounds)/2= 540 pounds

Initial inventory= 190 pounds (-)

Purchase= 1870 pounds

3 0
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