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4 years ago

A cement manufacturer has supplied the following data:

Business

1 answer:

atroni [7]4 years ago

5 0

Answer:

Unitary contribution margin= $2.2

Explanation:

Giving the following information:

Tons of cement produced and sold 240,000

Sales revenue $1,008,000

Variable manufacturing expense $439,000

Variable selling and administrative expense $41,000

<u>First, we need to calculate the total contribution margin:</u>

Total contribution margin= 1,008,000 - 439,000 - 41,000

Total contribution margin= $528,000

<u>Now, the unitary contribution margin:</u>

unitary contribution margin= 528,000/240,000

unitary contribution margin= $2.2

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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 2

Alecsey [184]

Answer:

Current value per share is $13.33

Explanation:

The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,

P0 = D0 * (1+g1) / (1+r) + [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]

Where,

g1 is the initial growth rate which is 20%

g2 is the constant growth rate which is 5%

r is the required rate of return

P0 = 1 * (1+0.2) / (1+0.14) + [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]

P0 = $13.33

5 0

3 years ago

Karl runs a store that sells small and large space heaters. The large heaters sell for $250 each with unit variable costs of $12

umka2103 [35]

Answer: Karl must sell 1350 small heaters and 450 large heaters to break even.

We follow these steps to arrive at the answer:

No. Small Large Total

1 Selling Price per unit 80 250

2 Variable Cost per unit 30 120

3 Number of units sold 2100 700 2800

4 Sales mix 3 1

5 Total sales (1*3) 168000 175000

6 Total Variable Cost (2*3) 63000 84000

7 Contribution Margin (5-6) 105000 91000 196000

Next we compute the Weighted Average Contribution Margin as follows:

$\mathbf{WACM per unit = \frac{Total Contribution Margin}{Total number of units sold}}$

$\mathbf{WACM per unit= \frac{196000}{2800} = 70}$

Now, Break even point (BEP) is computed as

$\mathbf{BEP = \frac{Total Fixed Costs}{WACM per unit}}$

$\mathbf{BEP = \frac{126000}{70} = 1800 units}$

Since the large and small heaters are sold in the 3:1 ratio, we can find the number of large and small heaters to be sold in order to achieve the break even point at 1800 units.

$No. of small heaters = BEP * \frac{3}{4}$

$No. of small heaters = 1800 * \frac{3}{4} = 1350 units$

$No. of large heaters = BEP * \frac{1}{4}$

$No. of large heaters = 1800 * \frac{1}{4} = 450 units$

3 0

3 years ago

A company wants to restrict access to sensitive data. Only those who have a "need to know" will have access to this data. Strong

Sergeeva-Olga [200]

Answer:

Password and U2F token

Explanation:

The password and the U2F token do not include user identification but are applied or used for two factors authentication

Here password could be for social websites like login to social websites. When login it asks for authentication for higher security so that the hacking could be minimized

The U2F refers to the universal two-factor authentication. It can be used through the USB, NFC, Bluetooth device

7 0

3 years ago

The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting ent

Anarel [89]

Answer:

a. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Explanation:

Before adjustment at the end of the year, the balance in the prepaid insurance account is $27,000

a. The amount of insurance expired during the year is $20,250. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The amount of unexpired insurance applicable to future periods is $6,750. The amount of insurance expired during the year = $27,000 - $6,750 = $20,250

The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

8 0

3 years ago

Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer parts is 1,000 units

mihalych1998 [28]

Answer:

Estimated manufacturing overhead rate= $19 per direct labor hour

Explanation:

Giving the following information:

Computer parts= 1,000 units

Keyboards= 1,200

Computer parts require 3 direct labor hours per unit

Keyboards require 2.5 direct labor hours per unit.

The total estimated overhead for the period is $114,000.

The allocation base is direct labor hours. First, we need to calculate the total amount of direct labor hours.

Direct labor hours= total units per product*unitary direct labor hour required

Direct labor hour= 1,000*3 + 1,200*2.5= 6,000 direct labor hours

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 114,000/ 6,000= $19 per direct labor hour

7 0

3 years ago