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ad-work [718]
3 years ago
7

The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit v

ariable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June?
Business
1 answer:
KiRa [710]3 years ago
5 0

Answer:

Margin of safety= 250 units

Explanation:

Giving the following information:

Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units.

First, we need to calculate the break-even point in units.

Break-even point= fixed costs/ contribution margin

Break-even point= 42,000/(38-14)= 1,750 units

Margin of safety= current unit sales - break-even point= 2,000 - 1,750= 250 units

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Jeremy is an effective leader who is capable of helping his subordinates complete their tasks. However, he is considered intimid
never [62]

Answer:

Fiedler's contingency theory of leadership effectiveness.

Explanation:

Fiedler's contingency theory of leadership effectiveness states that one's effectiveness as a leader is determined by how leadership can match the situation at hand.

There is no single best way to lead, but leadership style is determined by the situation.

According to Fiedler's contingency theory of leadership effectiveness, leadership style is fixed and leaders will need to be put into situations that best matches their style.

The two important factors to consider in thos theory are leadership style and situational favourableness.

6 0
2 years ago
Even before Michelle could explain why a prospect had not purchased her company's new line of ecofriendly outdoor furniture, her
postnew [5]

Answer:

Informal feedback

Explanation:

In simple words, informal feedback relates to the feedback under which the feedback is not planned by either of the parties involved and the conversation regarding the review just happens occasionally unplanned. I

 Generally, In such feedback there is no exchange of information but one party dictates their view to the other. Hence, from the above we can conclude that the given case is an instance of informal feedback.

8 0
2 years ago
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your
arlik [135]

Answer and Explanation:

a)

If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000

And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000

profits=$300,000

b)

If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.

So profits = 1000*90 + 1000*160=$250,000

c)

for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.

So everyone will buy a bundle of 1 X and 1 Y.

profits = 150*3000= $450,000

d)

If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000

Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000

and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000

total profits =$460,000

8 0
2 years ago
The movement of parts from one area of the factory to another is considered a value-added activity whereas the storage of raw ma
ivanzaharov [21]

Answer:

TRUE

Explanation:

Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.

If the customers does not wish to pay the price, then there is no value.

So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.

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4 0
2 years ago
The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv
Mkey [24]

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

7 0
3 years ago
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