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AnnZ [28]
3 years ago
10

K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18 per pair in variable raw material costs and $24.36

per pair in variable labor expense. The shoes sell for $170 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000.a. What were total production costs?b. What is the marginal cost per pair?c. What is the average cost per pair?d. If the company is considering a one-time order for an extra 5,000 pairs?What is the minimum acceptable total reveune from the order.
Business
1 answer:
Brums [2.3K]3 years ago
6 0

Answer:

(a) $10,093,300

(b) $57.54

(c) $69.61

(d) $287,700

Explanation:

Given that,

Variable raw material = $33.18 per pair

Variable labor expense = $24.36 per pair

Fixed cost = $1,750,000

Last year, production = 145,000 pairs

(a) Variable cost per unit:

= Variable raw material + Variable labor expense

= $33.18 + $24.36

= $57.54

Total production costs:

= Variable cost per unit × Number of units) + Fixed cost

= ($57.54 × 145,000 pairs) + $1,750,000

= $8,343,300 + $1,750,000

= $10,093,300

(b) Marginal cost per pair:

= The variable cost per pair

= $57.54

(c) Average cost per pair:

= Total Production Cost ÷ Number of units produced

= $10,093,300 ÷ 145,000

= $69.61

(d) Production Cost of additional 5,000 pairs:

= (Variable Cost per pair × Number of additional pairs produced )

= ($57.54 × 5,000)

= $287,700

Minimum acceptable total revenue is $287,700.

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levacccp [35]

Answer:

C. To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

Explanation:

Real GDP calculates the monetary value of all goods and services that a country produce within one year after adjusting it to inflation or deflation.

Knowing Real GDP often used as a measurement to find out the economic growth of a country. If the Real GDP is increased, it indicates that the people in that country become more productive and it is most likely that their disposable income is also increased.

3 0
3 years ago
Major Manuscripts, Inc., is currently operating at 70 percent of capacity. All costs and net working capital vary directly with
bagirrra123 [75]

The attached data is required to answer the question

Answer:

$535

Explanation:

In this scenario we need to calculate the additional debt required by Major Manuscript

We expect an increase of 10% of sales

Therefore

Total assets projected = 9,420 * 1.10 = $10,362

Accounts payable projected = 2,200 * 1.10 = $2,420

Current long term debt = $260

Current common stock = $2,400

Retained earnings projected = 4,560 +{(360 - 190) * 1.10} = $4,747

Additional debt required = 10,362 - 2,420 - 260 - 2,400 - 4,747

Additional debt required = $535

6 0
2 years ago
Jack Corporation uses horizontal analysis to compare its income statement from year to year. Jack Corporation reported the follo
fredd [130]

Answer:

Current year cost of goods sold is $181,800.

Explanation:

The current year cost of goods sold is calculated as follows:

Current year cost of goods sold = Last year cost of goods sold + Current year change

= $180,000 + ($180,000 * 1%)

= $180,000 + $1,800

= $181,800

Therefore, current year cost of goods sold is $181,800.

6 0
3 years ago
Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27
natali 33 [55]

Answer:

5.95%.

Explanation:

Expected dividend (D1) $1.25

Stock price $27.50

Required return 10.5%

Dividend yield 4.55%

Growth rate = rS - D1/P0 = 5.95%.

4 0
3 years ago
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castortr0y [4]
It would because it would be increasing sales
4 0
2 years ago
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