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Leona [35]
3 years ago
7

Yam is a gourmet chef who runs a small catering business in a competitive industry. Yam specializes in making wedding cakes. Yam

sells 20 wedding cakes per month. Her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $300. In order to maximize profits, Yam should:
Business
1 answer:
mr_godi [17]3 years ago
4 0

Answer:

She should continue producing 20 wedding cakes a month.

Explanation:

From the information in the question

Revenue per unit= Total revenue/Units produced

Revenue per unit= 5000/20= $250

We were given the marginal cost as $200

So our revenue per month ($250) is higher than marginal cost ($200)

Yam is making a profit of $50, so she should continue producing 20 cakes per month

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Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a
dimulka [17.4K]

Answer:

Depreciation 2021 = $10,000

Book Value 2021 = $35,000

Explanation:

Straight Line method charges a fixed amount of depreciation during the use of an asset.

Depreciation Charge = (Cost - Residual Value) ÷ Estimated Useful Life                

Therefore,

Depreciation 2021 = ($45,000 - $5,000) ÷ 4

                               = $10,000

Book Value = Cost - Accumulated Depreciation to date

Therefore,

Book Value 2021 = $45,000 - $10,000

                             = $35,000

6 0
3 years ago
A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage
Veseljchak [2.6K]

Answer:

The equivalent units of production for the month is 11,850 units

Explanation:

The computation of the equivalent unit is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (8,900 units × 100%) + (5,900 units × 50%)

= 8,900 units + 2,950 units

= 11,850 units

For computing the equivalent units,we have to consider both the units which are mentioned in the question.

7 0
3 years ago
Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and
Leni [432]

Answer: Please find answers in explanation column

Explanation:

To record flow of cost of raw materials

     Account                                               Debit           Credit  

1) Work in process-Refining department $385,000  

            Raw           Materials                                            $385,000

To record flow of  labour cost

Account                                                         Debit           Credit  

2) Work in process-Refining department    $143,000  

          Wages payable                                $143,000

To record applied factory overhead

Account                                                           Debit           Credit  

3) Work in process-Refining department    $99,000  

factory overhead-refining department                             $99,000  

Entry to record the transfer of production costs to the second department, Sifting.

Account                                                    Debit           Credit  

4) Work in process-Sifting department $626,800  

Work in process-Refining department                           $626,800

calculation

Beginning work in process +   raw material + wages payable + factory overhead - ending work in process

$29,600 + $385,000+ $143,000 +$99,000 - $29,800   =$626,800

6 0
3 years ago
Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
Ratling [72]

Answer:

B) 9.1%

Explanation:

Cost of debt is the interest rate paid by a company due to borrowing money; i.e  debt from investors.

$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;

First, find pretax cost of debt ;

Pretax cost of debt = (Interest expense / Face value of debt )*100

= (26,000,000/ 185,000,000 )*100

=0.1405 *100

= 14.05%

Next, use pretax cost of debt to find after-tax cost of debt;

After-tax cost of debt = Pretax cost of debt (1-tax)

= 14.05% *(1-0.35)

= 9.13%

Therefore, Westford's cost of debt capital is 9.1%

6 0
3 years ago
Ramon has been appointed the manager of a retail store. He wants to bring the store into the modern era and direct its future by
nika2105 [10]

Answer:

C.  install mannequin robots to display clothes

Explanation:

Among the offered answers, a truly avantgarde, modern approach is <u>to implement robot mannequins in the store.</u> With this tactic, customers would be incentivized to approach this innovative customer journey. Through pioneering this technique, Ramon's company would get a competitive advantage through visual merchandising.

6 0
3 years ago
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