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Dominik [7]
3 years ago
5

GoSnow sells snowboards. Each snowboard requires direct materials of $128, direct labor of $53, and variable overhead of $63. Th

e company expects fixed overhead costs of $301,000 and fixed selling and administrative costs of $229,000 for the next year. The company has a target profit of $189,800. It expects to produce and sell 11,800 snowboards in the next year. Compute the selling price using the variable cost method. (Round your answer to 2 decimal places.)
Business
1 answer:
Fofino [41]3 years ago
6 0

Answer:

Unitary selling price=  $304.93

Explanation:

Giving the following information:

Unitary variable costs:

direct materials of $128

direct labor of $53

the variable overhead of $63.

Fixed costs:

The fixed overhead costs of $301,000

Fixed selling and administrative costs of $229,000

The company has a target profit of $189,800.

Units sold= 11,800 snowboards

First, we need to calculate the total contribution margin required:

Contribution margin= net profit + total fixed expense

Contribution margin= 189,000 + (301,000 + 229,000)

Contribution margin= $719,000

Now, we calculate the total variable expense:

Total variable cost= 11,800* (128 + 53 + 63)

TVC= 2,879,200

Finally, we calculate total sales and the unitary selling price:

Total sales= contribution margin + total variable cost

Total sales= 719,000 + 2,879,200= 3,598,200

Unitary selling price= 3,598,200/11,800= $304.93

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Vesnalui [34]

Answer:

Johnstone should value the equipment at <u>$40,326.29</u>.

Explanation:

To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the five annual installments =?

P = Annual payment = $8,000

r = interest rate = 10%, or 0.10

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)

PV = $8,000 * 3.79078676940845

PV = $30,326.29

Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.

As result of this:

Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29

Therefore, Johnstone should value the equipment at <u>$40,326.29</u>.

7 0
3 years ago
Sox Corporation purchased a 30% interest in Hack Corporation for $1,825,000 on January 1, 2021. On November 1, 2021, Hack declar
Kazeer [188]

Answer:

the loss reported is $1,135,000

Explanation:

The computation of the amount of loss reported is shown below:

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Less: Share of Dividends received -$690,000 ($2,300,000 × 30%)  

Carrying value of investment $1,135,000  

Share of net loss $1,320,000  ($4,400,000 × 30%)

It should be limited to the carrying value of an investment

Hence, the loss reported is $1,135,000

8 0
3 years ago
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sleet_krkn [62]

Answer: -$100

Explanation:

Value of forward contract = Selling price - Forward price on bond

Forward price = Present value of cashflows + Present value of bond

Periodic rate = 7%/ 2 = 3.5% per semi annum

= 8% / 2 = 4%

3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.

= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)

= $1,020.342

= $1,020

Value of forward contract = 920 - 1,020

= -$100

4 0
2 years ago
Trends among category killers such as Staples for office supplies and Best Buy for electronics include price matching and ______
tatiyna

Price matching and Shipping directly are trends office supplies and Best Buy offers, which can compete with ratailers online who sells similar products.

<h3>What is marketing?</h3>

Marketing refers to the process of getting people interested in a company's product or service. It is a process a company undertakes to promote the buying or selling of a product or service.

The essence is to create awareness of the product to potential buyers so that they can purchase the products.

Hence, trends among category killers such as Staples for office supplies and Best Buy for electronics include price matching and Shipping directly from any store rather than just warehouses

Learn more about marketing here : brainly.com/question/25369230

3 0
2 years ago
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NISA [10]

Answer:

Measured over equal time periods.

Explanation:

To get an understanding of the <u>rate</u> of return you first need to lay down a period of time that you can use as a baseline when comparing the return of each investment.

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