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Naddik [55]
3 years ago
6

Your plant produces 100 snowmobiles per month. Direct costs are $2,000 per snowmobile. Monthly overhead is $90,000. What is the

average cost per snowmobile with overhead?
Business
1 answer:
fenix001 [56]3 years ago
7 0

Answer:

$2,900

Explanation:

If we use a cost function, it will be easy to understand. Cost function = (variable cost per unit × quantity) + fixed cost.

Here,

Direct cost per snowmobile = $2,000. It is the variable cost.

Overhead cost = $90,000. It is a fixed cost.

Total snowmobiles = 100 units

Total cost = ($2,000 × 100 snowmobiles) + $90,000

Total cost = $290,000

We know,

Average cost per snowmobile = Total cost ÷ total quantity

Average cost per snowmobile = $290,000 ÷ 100

Average cost per snowmobile = $2,900

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the area of a rectangle is 600 cm2 and its breadth is two-third of its length find the length and breadth of the rectangle​
alexandr1967 [171]

Given:

Area of a rectangle is 600 \text{cm}^2.

Breadth is two-third of its length.

To find:

The length and breadth of the rectangle​ .

Solution:

Let x cm be the length of the rectangle.

Then, Breadth or width of the rectangle = \dfrac{2}{3}x cm

Area of a rectangle is

Area=Length \times Breadth

600=x \times \dfrac{2}{3}x

600=\dfrac{2}{3}x^2

Multiply both sides by 3.

1800=2x^2

Divide both sides by 2.

900=x^2

Taking square root on both sides.

\pm \sqrt{900}=x

\pm 30=x

Length cannot be negative. So, x=30.

Now,

Length = 30\text{ cm}

Breadth = \dfrac{2}{3}\times 30\text{ cm}

             = 2\times 10\text{ cm}

             = 20\text{ cm}

Therefore, the length of the rectangle is 30 cm and the breadth is 20 cm.

8 0
3 years ago
Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi
irina1246 [14]

Answer:

Yes, it will affect it.

Explanation:

The dividends received deduction (DRD) refers to a US federal tax law that allows some corporation that are paid dividend by related entities to deduct  certain percentage of the dividend received from their income tax depending on their percentage of ownership of the related entity that paid the dividend.

The three criteria or tiers that determines how much to deduct as DRD are as follows:

1. Generally, the DRD a corporation is qualified for is 70% of the dividend received.

2. A DRD equals to 80% of the dividend received can be deducted if the corporation holds more than 20% but less than 80% shareholding of the company that paid the dividend.

3. If the corporation holds more than 80% shareholding of the company that paid the dividend, a DRD of 100% of the dividend applies.

Therefore, additional stock purchase will affect the amount of dividends received deduction that Mustard can claim.

4 0
3 years ago
(a) If the demand equation is pq=k for a positive constant k, compute the elasticity of demand.
nirvana33 [79]

Answer:

a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)

b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies

1.All prices are critical points of the revenue function.

2.Revenue is increased by lowering the price

8 0
3 years ago
Mr. Smith at Acme Production, Inc. is trying to determine the true economic value (TEV) for a new computerized machine. This mac
vesna_86 [32]

Answer:

$185,400

Explanation:

Price of next best alternative = $150,000

Expected crash system saving:

= (Probability of crash × cost of a system crash) - (Probability of machine will crash × cost of a system crash)

= [(15% × 500,000) - (5% × 500,000)]

= $75,000 - $25,000

= $50,000

Added operating cost true economic value:

= (Number of hours in 365 days × machine cost per hour) - (Number of hours in 365 days × Next best alternative cost per hour)

= [(2,920 × $20/hr) - (2,920 × $15/hr)]

= $58,400 - $43,800

= $14,600

True economic value (TEV) of the machine:

= Price of next best alternative + Expected crash system saving - Added operating cost true economic value

= $150,000 + $50,000 - $14,600

= $185,400

3 0
3 years ago
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead c
leva [86]

Answer:

1. $3,380

2. $2,175

Explanation:

Part 1

Predetermined overhead rate = Total Overheads for the Company ÷ Total  Direct labor-hours for the Company

                                                  =  $ 15,080,000 ÷ 232,000

                                                  = $65

Overheads applied to Job Bravo = ( 30 x $65) + (22 x $65) =  $3,380

Part 2

<em>Assembly department</em>

Predetermined overhead rate =  $ 7,250,000 ÷ 145,000

                                                  = $50

<em>Assembly department</em>

Predetermined overhead rate =  $ 7,830,000 ÷ 290,000

                                                  = $27

Overheads applied to Job Bravo = (30 x $50) + (25 x $27) = $2,175

3 0
3 years ago
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