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Reptile [31]
3 years ago
6

Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The vari

able production costs per bag are $1.80 and total fixed costs are $10,000. The hamster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,000 cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8 and $6 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:
A. $98,000.
B. $96,000.
C. $8,000.
D. $6,000.
E. $2,000.
Business
1 answer:
Thepotemich [5.8K]3 years ago
8 0

The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be:

<u>Explanation:</u>

Concept and region

Financial Statement

The statement is prepared for the specific period which comprises the financial information of the organization. it includes the statement of the income which shows the profitability of the business, balance sheet which shows the financial position in the terms of the asset. liability and capital, and cash flow statement (CFS) which represents the cash flows for the accounting period.

Fundaments

Sales:

It refers the revenue which is earned by the core business of the organization the units sold during the period are multiplied by the selling price per unit in order to determine the amount of sales.

The incremental revenue of the company is $6,000.

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Systematic risk is defined as: Select one: a. diversifiable risk. b. the total risk of an individual security. c. the risk uniqu
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Answer:

e. any risk that affects a large number of assets.

Explanation:

The systematic risk is the risk which is involved in the whole market or part of the market.

It is also known as non-diversifiable risk or market risk as it affects the overall market not a single stock or market

As it is a market risk so  It cannot be avoided as it is unpredictable.

Thus all other options are wrong

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4 years ago
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4 years ago
4. Employee benefits (also now as fringe benefits or job benefits) are:
yanalaym [24]

Answer:

b. Added to gross wages to calculate Total job Benefits

Explanation:

Employee benefits are incentives offered by employers on top of their regular salaries. Examples of benefits include medical insurance, bonuses, allowances, vacations, educational benefits, among others.  These benefits are also known as fringe benefits.

Employee benefits are subject to tax. When calculating an employee's total gross pay, benefits are added to the regular pay to get the total earnings by the employee.

6 0
3 years ago
The following balances have been taken from the general ledger for CCC Manufacturing Company:
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Answer:

FOH rate based on direct labor cost is 22.8%.

Explanation:

The computation of the factory overhead rate based on the direct labor cost is as follows:

Factory Overhead (FOH) Rate on Direct Labor Cost is

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= [$32,000 + $25,000] ÷ $250,000 × 100

= $57,000 ÷ $250,000 × 100

= 22.8%

Therefore, FOH rate based on direct labor cost is 22.8%.

8 0
3 years ago
Bailey Company incurred the following costs in manufacturing desk calculators: Direct materials $18 Indirect materials (variable
Romashka-Z-Leto [24]

Answer:

$84

Explanation:

Calculation to determine the inventory cost per unit using absorption costing

Direct materials $18

Indirect materials (variable) $3

Direct labor $9

Indirect labor (variable) $7

Other variable factory overhead $13

Fixed factory overhead $34

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($18 + $3 + $9 + $7 + $13 + $34 = $84

Therefore the inventory cost per unit using absorption costing is $84

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3 years ago
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