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3 years ago

Total revenue decreases as the price of a good increases, if the demand for the good is

Business

1 answer:

Karolina [17]3 years ago

8 0

Total revenue decreases as the price of the good increase if the demand for the good is inelastic

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Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 uni

AveGali [126]

Answer:

$52,500

Explanation:

Plan - 1 Plan - 2

Units produced 10,000 15,000

Variable Manufacturing cost $126 $126

Fixed manufacturing cost $15.75 $10.50

($157,500 ÷ Units produced)

Unit cost $141.75 $136.50

Working note

Fixed manufacturing cost for Plan A = $157,500 ÷ 10,000

= $15,75

Fixed manufacturing cost for Plan B = $157,500 ÷ 15,000

= $10.50

Unit cost for Plan A = $126 + $15.75

= $141.75

Unit cost for Plan B = $126 + $10.50

= $136.50

Income under two plans different for the amount as below Number of units in ending inventory in Plan -2 = 5,000 units

(i.e. 15000 units produced - 10,000 units sold)

Fixed manufacturing of per unit = $10.5

Difference in Income in two plans under Absorption costing = 10,000 × $10.5

= $52,500

Variable costing

Therefore, there will be no difference in income of Two plans under Variable costing.

5 0

4 years ago

1. The DE partnership is undergoing an installment liquidation. Partners D and E share income in a 3:2 ratio and have current ca

xz_007 [3.2K]

Answer:

The correct answer is option (C):

$30,000 to D; $20,000 to E

Explanation:

The key to solving this problem is to take not of the ratio at which income are shared which is 3:2 for partners D and E respectively. This means that out of every 5 parts (3 + 2), partner D gets 3 parts and the remaining 2 parts is for partner E.

Amount available to be shared = $50,000

Therefore amounts each partner gets is calculated thus:

Partner D:

3/5 of 50,000

= 3/5 × 50,000 = 0.6 × 50,000 = $30,000

Partner E:

2/5 of 50,000 = 0.4 × 50,000 = $20,000

hence partner D gets $30,000 while partner E gets $20,000

8 0

3 years ago

ssume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-profit (municipal) bond that pays 5

Luden [163]

Answer:

7.14%

Explanation:

Tax rate applicable for John Richards =30%. So, Post Tax profit for corporate bond will be 70% (1 - 30%) of profit.

Required post tax profit from Corporate Bond is 5%.

Required pretax profit from Corporate bond = 5%/70% = 0.071429 = 7.14%

Therefore, to get 5% post tax profit from corporate bond, the interest rate needs to be set on 7.14% to produce the same amount of usable (after-tax) income.

4 0

3 years ago

Step2247 [10]

Answer: "systematic review" .
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7 0

4 years ago

Based on the following data, what is the gross profit for the company?Sales$ 1,000,000Net purchases of raw materials 600,000Cos

lidiya [134]

Answer:

$600,000

Explanation:

Sales = $ 1,000,000

Net purchases of raw materials = 600,000

Cost of goods manufactured = 800,000

Marketing and administrative expenses = 250,000

Indirect manufacturing costs = 500,000

Beginning inventory Ending inventory

Work in process = $500,000 $400,000

Finished goods = $100,000 $500,000

Cost of goods sold:

= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

= $100,000 + $800,000 - $500,000

= $400,000

Gross profit = Sales - Cost of goods sold

= $ 1,000,000 - $400,000

= $600,000

3 0

3 years ago