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chubhunter [2.5K]
3 years ago
12

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 78 Units in beginning inventory 0 Units produced 8,800 Units sold 8,700 Units in ending inventory 100 Variable costs per unit: Direct materials $ 18 Direct labor $ 10 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 255,200 Fixed selling and administrative expense $ 87,000 What is the net operating income for the month under variable costing
Business
1 answer:
Tpy6a [65]3 years ago
8 0

The net operating income as per the variable costing method is $14500

<u>Explanation:</u>

The unit product cost is = $18 + $10 + $4 = $32

Sales revenue ( $78 multiply with 8700 units) = $678600

Variable cost:

Variable cost of goods sold ( 8700 units multiply $32) = $278400

Variable selling and administartive (8700 units multiply $5) = $43500

contribution margin = $356700

fixed manufacturing overhead = $255200

Fixed selling and adminstrative expenses = $87000

Net operating income = $14500

<u>Note:</u> contribution margin is calculated after deducting sales revenue with variable cost

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Alex left his position as a manager for Macy's after two years. He complained of being burned out from having to fulfill too man
devlian [24]

<em>Answer:</em>

<em>d. delegation.     </em>

<em>Explanation:</em>

<em>Delegation: </em><em>In management, delegation is described as any of the assignment related to an authority figure that is being given to another individual, for example, a task or assignment given by a manager to his or her subordinate to lead a few specific activities. Delegation is determined as one of the different concepts related to "management leadership". Therefore, an individual who is being delegated a specific work tends to remains "accountable" for the output of the "delegated work".</em>

<em>As per the question, Alex probably never learned to use the tool of delegation.</em>

4 0
2 years ago
Suppose that the price of a rental car (Prc) is $50 while the price of a flight (Pfl) is $85. Also, suppose that the marginal ut
Masteriza [31]

Answer:

Consumers should choose to take the flight.

Explanation:

The price of a rental car = $50

Marginal utility from the car = 20 utils

Now find the per dollar utility from car = $50 / 20 = 2.5

The price of a flight = $85

Marginal utility from the flight = 30 utils

Now find the per dollar utility from flight = $85 / 30 = 2.83

Since the per dollar, MU is greater in the case of flight so consumers should choose to take the flight.

6 0
3 years ago
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual
xenn [34]

Answer:

Location A is superior to up 40 units. From there Location B is better

Explanation:

Giving the following information:

Location A:

Fixed costs of $100,000

Variable costs of $13,000 per unit.

Location B:

Fixed costs of $300,000.

Variable costs of $8,000 per unit.

The finished items sell for $18,000 unit.

Contribution margin Location A= 18000-13000= 5,000

Contribution margin Location B= 18000 - 8000= 10,000

Income formula location A= 5000*Q - 100000

Income formula location B= 10000*Q- 300000

5000*Q - 100000= 10000*Q - 300000

200000= 5000Q

Q= 40 units

Location A is superior to up 40 units. From there Location B is better.

6 0
3 years ago
Hamilton believed that, together, his funding and assumption programs would A) gain the monetary and political support of the ri
ICE Princess25 [194]

Answer:

A) gain the monetary and political support of the rich for the federal government.

Explanation:

Hamilton theory was based on supporting the upper class of the citizens. This was to support government as the upper class would do business or great level, and that these citizens when will be given money for there business as debt to be paid back to government, will work harder and will help achieve the economy its targets.

This entire scheme/ strategy will help the federal government to gain success, and achieve a state of better financial viability in the entire economy.

With more opportunities and efforts the economy will better off automatically.

3 0
3 years ago
Ted has always had difficulty saving money, so on June 1, Ted enrolls in a Christmas savings program at his local bank and depos
Anika [276]

Answer:

Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account

Explanation:

Step 1: Determine interest amount

The formula for calculating interest is as follows;

I=PRT

where;

I=interest

P=principal

R=annual interest rate

T=number of years

In our case;

P=750

R=10%=10/100=0.1

T=From June 1 to December 1=6 months=0.5 years

replacing;

I=(750×0.1×0.5)=$37.5

Step 2: Determine total amount Ted will have for the two scenarios

case 1

Christmas savings program=750

Ordinary savings account=(750+37.5)=787.5

Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account

3 0
3 years ago
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