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NISA [10]
3 years ago
6

Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (a

) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio % b. Unit contribution margin $ per unit c. Income from operations
Business
1 answer:
tatyana61 [14]3 years ago
5 0

Answer:

a. Contribution margin ratio = Contribution per unit/selling price

                                              = $18/$$5

                                              = 0.4 = 40%

b.    Contribution per unit = Selling price - Variable cost per unit

                                       = $45 - $27

                                       = $18

c. Income from operations                         $

Total contribution ($18 x 160,000 units)  2,880,000

Less: Fixed cost                                            975,000

Income from operations                           1,905,000

Explanation:

Contribution margin ratio is the ratio of contribution per unit to selling price

Contribution per unit is the excess of selling price over variable cost per unit

Income from operation is the excess of total contribution over fixed cost

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Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth. For the month of October, the
ki77a [65]

Answer:

wages and salaries activity variance= $1,000 unfavorable

Explanation:

Giving the following information:

Standard:

Fixed= $1,230

Variable= $240 er birth

Actual:

101 births.

The actual wages and salaries for the month was $26,470.

To calculate the activity variance for wages, we need to use the following formula:

wages and salaries activity variance= (actual costs - standards costs)

standards= 1,230 + 240*101= $25,470

wages and salaries activity variance= (26,470 - 25,470)

wages and salaries activity variance= $1,000 unfavorable

4 0
3 years ago
Watches, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the compa
Nutka1998 [239]

Answer:

Management Information Systems

Explanation:

Watches, an online watch store, recently adopted a new enterprise resource planning (ERP) system to help keep track of the company's inventory and to deliver customers' orders on time. The company's adoption of the new ERP system reflects a change in the area of <u>Management Information Systems.</u>

Companies use the knowledge of Information Systems to streamline company operations and manage various systems <u>to better serve their clients.</u>

7 0
3 years ago
An appraiser wants to determine if it is economically feasible for the owner of an apartment building to put in a swimming pool
PIT_PIT [208]

Answer:

contribution

Explanation:

the landlord will spend money building the swimming pool, and he/she will do it expecting to receive a higher rent. The appraiser should try to determine if the investment in the swimming pool will contribute enough extra rent to justify making the investment. In other words, does the landlord increase his/her net economic profit by installing the swimming pool?

8 0
3 years ago
"Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers.
Ymorist [56]

The question is incomplete, here is the complete question.

"Craig, the CEO of ShopRite, Inc., has noticed that one of his store locations has consistently through-the-roof sales numbers. Also, a survey completed by employees revealed that this particular location’s workers showed extremely high levels of motivation and job satisfaction when compared to other locations in the region. Everyone who works there gave high praise to their manager, Jamal. What else did the surveymost likely reveal about Jamal’s employees?"

A) They reported feeling a lot of pressure to exceed sales goals every month.

B) They demonstrated citizenship behaviour such as volunteering work

C) They recorded higher level of stress than stored with lower sales number

D) They loved Jamal but were not especially committed to the company overall.

Answer:

They demonstrated citizenship behaviour such as volunteering work.

Explanation:

Survey can be described as a method that is used to collect data or information about a particular topic that requires a lot of attention.

Survey as a research method can be used to gather data about the different attitude and behaviour exhibited by each employees in an organization. It is used by the management of a company to effectively determine the amount of efforts that each employee is putting in towards the growth and success of the business.

In the scenario described above, the CEO of shopRite Inc has observed through a recent survey conducted that one of his store locations has recorded a high number of sales, this is as a result of the high rate of efficiency put in by the workers to ensure the success of the business.

5 0
3 years ago
Weaver Company's predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour.
Misha Larkins [42]

Answer:

1. $590

2. $9.83

Explanation:

1.

Total Number of Direct Labor Hours:

= Total Labor Cost ÷ Labor Rate Per Hour

= 150 ÷ 15

= 10 Hours

Total Overheads:

= Total Number of Direct Labor Hours*Predetermined Overhead Rate

= 10 × 21

= 210

Total Manufacturing Cost = 230 + 150 + 210

                                           = $590

2.

Average Cost:

= Total Manufacturing Cost ÷ Number of Units

= 590 ÷ 60

= $9.83

3 0
3 years ago
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