Answer:
The break even level of units per month fall by 16 units.
Explanation:
The current breakeven units per month are,
Break even in units = 5600 / (20 - 6)
Break even in units-March = 400 Units
The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.
The new variable costs will be 6 * 0.9 = $5.4
Assuming everything else remains constant,
The new break even in units per month = 5600 / (20 - 5.4)
New break even in units = 383.56 rounded off to 384 units
As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.
Answer:
Of the various business-level strategic alliances, <u>VERTICAL COMPLEMENTARY</u> alliances have the most probability of creating sustainable competitive advantage, and <u>COMPETITION REDUCING</u> have the lowest.
Explanation:
A vertical complementary alliance takes place between a manufacturer and a supplier that come together. This usually happens through a requirements contract where the supplier agrees to only sell its materials, components and parts to the manufacturer and the manufacturer agrees to only purchase the components, materials and parts needed from that specific supplier.
On the other hand, competition reducing alliances are generally horizontal alliances where companies agree to work together in order to reduce uncertainty, instead of focusing on gaining market share.
1. The missing amounts should be determined in the following manner:
On Company A. Materials inventory December 1 Materials inventory December 31-+Materi also purchased -Cost of direct materials
Off Company Total manufacturing costs incurred in December -Direct labor Cost of direct materials used in production -Factory
2. On Company's statement of goods manufactured should be prepared as follows:
On Company Statement of Goods Manufactured For the Month of December 2016 Materials inventory December 1 Add: Purchases Total
3. On Company's income statement should be prepared as follows:
On Company Income Statement For the Month of December 2016 Sales 1,127,000 827.400 299,600 Less: Operating expenses 117,600.
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Answer: $57,600
Explanation:
The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.
Materials
= Alternative B costs - Alternative A Costs
= 56,000 - 24,000
= $32,000
Processing Costs
Alternative B costs - Alternative A Costs
= 30,000 - 30,000
= $0
Equipment Rental
= Alternative B costs - Alternative A Costs
= 28,100 - 10,200
= $17,900
Occupancy Costs
= Alternative B costs - Alternative A Costs
= 26,800 - 19,100
= $7,700
Adding them all up we get,
= 7,700 + 17,900 + 32,000
= $57,600
$57,600 is the differential cost of Alternative B over A.
Answer:
Volume overhead $ 540 unfavorable
Explanation:
<em>The volume overhead is the difference between the budgeted units and actual units multiplied by the cost unit</em>
Fixed over cost per unit =budgeted cost/Budgeted unit
= $27,000/1000 units
= $27
Volume variance
Units
Budgeted unit 1000
Actual unit <u>980</u>
<u>Difference </u> 20 unfavorable
Standard fixed overhead per unit <u> × $27</u>
Volume overhead <u> 540 unfavorable</u>
