Given the market for illegal drugs, when thegovernment is successful in reducing the flow ofdrugs into the United States,

Michael's Machine Shop reports the following information for the quarter.

Mandarinka [93]

Answer:

a. $26

b. $23

c. $34

d. $29

e. $21

f. $11

g. $14

h. $11

Explanation:

a. Variable cost per unit.

Variable cost per unit = Variable Manufacturing Costs + Variable Non - Manufacturing Costs

= $12 + $9 + $2 + $3

= $26

b. Variable production cost per unit.

Variable production cost per unit = Variable Manufacturing Cost

= $12 + $9 + $2

= $23

c. Full cost per unit.

Full cost per unit = Manufacturing and Non - Manufacturing (Variable and Fixed)

= $12 + $9 + $2 + $3 + $47,500/23,750 units + $142,500/23,750 units

= $12 + $9 + $2 + $3 + $2 + $6

= $34

d. Full absorption cost per unit.

Full absorption cost per unit = Variable Manufacturing Costs + Fixed Manufacturing Costs

= $12 + $9 + $2 + $6

= $29

e. Prime cost per unit.

Prime cost per unit = Direct Manufacturing Costs'

= $12 + $ 9

= $ 21

f. Conversion cost per unit.

Conversion cost per unit = Direct Labor Costs + Overheads Costs

= $9 + $2

= $11

g. Contribution margin per unit.

Contribution margin per unit = Sales - Variable Costs

= $ 40 - $26

= $ 14

h. Gross margin per unit.

Gross margin per unit = Sales - Full absorption cost per unit

= $40 - $29

= $11

3 0

3 years ago

In February, Pedro, the manager of a pool supply and cleaning company, is looking at the upcoming need for more workers to handl

Mademuasel [1]

Planning is the management process that Pedro is using.

Answer: Option A.

<u>Explanation:</u>

Management process is the process that has certain steps and procedures in it that a business organisation needs to follow to achieve the goals of the organisation and for the betterment of the business organisation for which the employers are working.

The various steps and procedures of the management process are planning, organizing, managing, leading, controlling and so on. Planning is the management process in which all the resources needed to achieve the organisational goals are planned and there is proper thinking before acting to achieve the goals.

5 0

3 years ago

Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a

timofeeve [1]

Answer:

Cost of each bottle of water is $7.

Explanation:

This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him $7. The cost per bottle of water reduces as units increases.

3 0

2 years ago

During February 2017, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000. Schwenn has cas

olchik [2.2K]

Answer:

Cash balance is $85,000

Explanation:

In determining the cash balance of the period, we must know how much is the inflow and outflow of the cash for the period and add it or deduct to the beginning balance. It is simply, beginning balance plus inflows less outflows. February is the first month of the operation of Schwenn Enterprises, that only means the possible beginning balance of the cash is the cash investment. So to further discuss it clearly, let’s do the computation.

Beginning balance on February $100,000

Add: inflow

Cash sales $20,000

Less: outflow

payment on expenses $35,000

CASH BALANCE AT FEBRUARY 28 $85,000

7 0

3 years ago

According to the law of increasing opportunity cost, as a society _________ more and more of a certain good, further production

Effectus [21]

Answer:

produces

increases

trade-offs

Explanation:

The law of increasing opportunity cost states that when firms decide to make additional units of a certain product by reallocating resources, they do that at a higher opportunity cost than the previous production. The major traceable reason for this is inefficiency in resource reallocation.

This increase in opportunity cost is associated with increasing and increasing trade-off.

4 0

2 years ago