1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Snowcat [4.5K]
3 years ago
11

direct materials $34, direct labor $27, variable manufacturing overhead $15, fixed manufacturing overhead $43, variable selling

and administrative expenses $20, and fixed selling and administrative expenses $28. Its desired ROI per unit is $31. Compute the markup percentage using absorption-cost pricing.
Business
1 answer:
Natalija [7]3 years ago
6 0

Answer:

Mark- up = 26.05%

Explanation:

<em>Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit </em>

Full cost per unit= Direct material cost + direct labor cost + variable manufacturing overhead + fixed manufacturing overhead

Note that the selling and administrative expenses are period cost which are not to be considered as production cost, hence they are excluded.

Full cost per unit= 34 + 27 +15 +43 = 119

ROI per unit/profit per unit = 31

Mark- up under absorption costing is profit expressed as a percentage of of the full cost.

Mark- up = 31/119 × 100 = 26.05%

Mark- up = 26.05%

You might be interested in
Moon Flower Cosmetics Company's executives are aware that their Asian customer base is interested in advanced skin care treatmen
vovangra [49]

Answer:

Letter b is correct. <u>Joint venture.</u>

Explanation:

The Joint Venture strategy can be defined as an economic association that occurs between two or more companies, whose objective is to carry out a certain activity during a limited period of time.

Joint Venture operations are commonly used for various organizational purposes, such as commercial, logistical, technological, etc., in addition to being a strategy that makes it possible to accelerate business by combining business resources.

It is necessary to know that in addition to the mutual benefits, the companies that adopt this strategy also share the same risks and costs, therefore planning is necessary so that the commercial association is profitable for both companies.

8 0
3 years ago
Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $901,000, payment due at delivery. (
LekaFEV [45]

Answer:

Groupo

Transaction Price                 When Revenue should be recognized

a. $901,000                          the delivery date

b. $879,000                          the sales date

c. $443,000                          the sales date

c. $37,000                            in the period interest is earned.

Explanation:

1) Data and Analysis:

a. Delivery date: Cash $901,000 Sales Revenue (MTN) $901,000

b. Sales date: Accounts receivable (Grifols) $879,000 Sales Revenue $879,000

c. Sales date: Accounts receivable (Magnus) $480,000 Sales Revenue $443,000 Deferred Interest Revenue $37,000

2) According to the IFRS 15 and ASC 606, Revenue from Contracts with Customers, revenue should be recognized when performance obligations have been met.

8 0
3 years ago
By working in a series of positions with increasing responsibilities, the owner of Stonegate Gardens has built her interest in f
REY [17]
By working in a series of positions with increasing responsibilities, the owner of Stonegate Gardens has built her interest in flowers and plants into a career
3 0
3 years ago
Read 2 more answers
Jessica’s credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. The follo
Tom [10]

The adjusted balance of Jessica for the month of October is $ 1033.76. In this method, monthly payment is deducted from the unlock balance, and purchase is not included in the balance.

<h3>What is the adjusted balance method?</h3>

With the adjusted balance method, the credit card company starts with the balance from the end of the last payment cycle and withdraws any payments made, and adds any credits sent to the account during the current cycle.

In the given information, to calculate the adjusted balance we will deduct the payments made from the beginning balance and ignore the purchases made for the month:

= \$\,1,240.55 - \$\,75.00 - \$\,131.79\\\\= \$\,1033.76

Hence, The correct answer is Option B.

To learn more about adjusted balance method, refer to the link:

brainly.com/question/11355738

7 0
2 years ago
What happens when a bond becomes due?
katen-ka-za [31]
<span>When you buy a bond, you're lending your money to a company or a government (the bond issuer) for a set period of time (the term). The term can be anywhere from a year or less to as long as 30 years. In return, the issuer pays you interest. On the date the bond becomes due (the maturity date), the issuer is supposed to pay back the face value of the bond to you in full.</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • The company purchases equipment with cash - The Equity account does the following:
    5·1 answer
  • Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of unemployment is 9 percent. Accor
    14·1 answer
  • EB1.
    7·1 answer
  • what type of resolutions are acted on without debate and without requiring memebrs to tread the resolution?
    15·1 answer
  • In the context of financial management information systems, transaction processing systems or enterprise systems capture transac
    14·1 answer
  • Hartley Psychiatric, Inc., needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide. The total cost
    11·1 answer
  • Which franchise model legally obligates a franchisee to replicate all aspects of the franchisor’s business?
    7·1 answer
  • 9. Search costs are
    9·1 answer
  • Standard Product Cost, Direct Materials Variance
    11·1 answer
  • Newton Corporation was organized on January 1, 20X7. On that date, it issued 200,000 shares of its $10 par value common stock at
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!