Answer and Explanation:
The computation is shown below:
1.
<u>Particulars Units Unit Cost Dollars
</u>
Beg. Inv. 84 $3 $252
Apr-02 75 $4 $300
Apr-14 66 $7 $462
Apr-23 52 $8 $416
Total 277 $1,430
Average cost of one hat is
= Total cost of purchases ÷ Units purchased
= $1,430 ÷ 277 units
= $5.16
2.
Ending Inventory in Units = Units purchased - Units sold
= 277 units - 142 units
= 135 units
Now
Value of Ending Inventory = Units in Ending Inventory × Average cost per unit
= 135 units × $5.16
= $696.60
= $697
3
Gross Margin = Units sold × (Selling Price - Cost of goods sold)
= 142 units × ($24 - $5.16)
= $2,675.28
= $2,675
Answer:
The contribution margin ratio is 35%
Explanation:
The formula for contribution is given below:
Contribution margin = revenue − variable costs.
Contribution margin ratio is given as:
(Sales – variable expenses) ÷ Sales
In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.
Contribution is $7000
contribution margin ratio =$7000/($20*1000)
=0.35 or 35%
The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall
Answer: Demand is Unit - Elastic over this price range.
Explanation:
When total revenue remains the same over various price level then the demand curve is unitary elastic.
Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.
A demand curve with an elasticity of 1 is called as unitary elasticity of demand.
I believe the answer is C.
Answer:
completed units = 9,500 gallons
Explanation:
gallons completed = beginning WIP inventory + units started during the month - ending WIP inventory = 1,000 gallons + 10,000 gallons - 1,500 = 9,500 gallons finished
units started and completed = total units started -ending WIP = 10,000 gallons - 1,500 gallons = 8,500 gallons