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guajiro [1.7K]
3 years ago
8

The actual information pertains to the third quarter. As part of the budgeting​ process, the Duck Decoy Department of Paralith I

ncorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. Actual Results Flexible Budget Static Budget Sales volume​ (in units) ​10,000 ​ ________ ​8,000 Sales revenues ​$239,000 ​$ ​$235,000 Variable costs ​167,000 ​$ ________ ​184,000 Contribution margin ​$72,000 ​$ ​$51,000 Fixed costs ​38,000 ​$ ________ ​33,000 Operating profit ​$34,000 ​$ ________ ​$18,000 The flexibleminusbudget variance for variable costs is​ ________. (Round the final answer to the nearest​ dollar.)
Business
1 answer:
Nezavi [6.7K]3 years ago
6 0

Answer:

Paralith Incorporated

Duck Decoy Department

Flexible Budget for Third Quarter:

                                Actual Results      Flexible Budget      Static Budget

Sales volume​ (in units) ​10,000 ​                  10,000                      ​8,000

Sales revenues ​      $239,000 ​               $293,750                  ​$235,000

Variable costs            ​167,000 ​               $ 230,000                  $184,000

Contribution margin ​$72,000                 ​  $63,750                    ​$51,000

Fixed costs                  38,000 ​                  $33,000​                   $33,000

Operating profit ​      $34,000 ​                  $30,750​                     $18,000

Explanation:

a) Calculations for flexible budget:

Sales volume = 8,000/8,000 x 10,000 = 10,000 units

Sales revenue = $235,000/8,000 x 10,000 = $293,750

Variable costs = $184,000/8,000 x 10,000 = $230,000

Fixed Costs will remain at $33,000

b) A flexible budget is a budget that adjusts or flexes with changes according to the volume or activity level.  On the other hand, the static budget amounts do not change from the amounts established at the time that the static budget was prepared and approved.

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Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the bar
ANTONII [103]

Answer:

Fredonia Barber Shop

a. Variable costs per haircut = $4.40

   Total monthly fixed costs = $8,910

b. Break-even point in units = 1,350

Break-even point in sales dollars = $14,850

Net income with 1,670 haircuts = $2,120

Explanation:

a) Data and Calculations:

Fixed costs:

Wages of barbers per month =    $6,900 ($1,380 * 5)

Manager's allowance per month = $535

Advertising per month =                 $270

Rent per month =                           $1,010

Utilities per month =                        $160

Magazines per month =                   $35

Total fixed costs per month =     $8,910

Ivanhoe currently charges $11 per haircut.

Variable costs per haircut:

Commission per haircut =       $3.75

Barber supplies per haircut = $0.50

Utilities per haircut =                $0.15

Total variable costs per unit   $4.40

Contribution margin per haircut = $6.60 ($11 - $4.40)

Contribution margin ratio = 0.6

Break-even point in units = $8,910/$6.60 = 1,350

Break-even point in sales dollars = $8,910/0.6 = $14,850

Net income assuming 1,670 haircuts for a month:

Sales revenue = $18,370 ($11 * 1,670)

Variable costs =     7,340 ($4.40 * 1,670)

Contribution       $11,030

Fixed costs            8,910

Net income         $2,120

8 0
3 years ago
You have been investing $300 a month for the last 8 years. Today, your investment account is worth $43,262. What is your average
sdas [7]

Answer:

Having invested $ 300 per month for the past 8 years, the total accumulated investment amount would be $ 28,800 (8 x 12 x 300). Now, having a total amount of $ 43,262, we find an increase of $ 14,462, which corresponds to the interest accumulated during said period. To know the percentage of the increase, we must perform a cross multiplication:

28,800 = 100

14,462 = X

(14,462 x 100) / 28,800 = X

1,446,200 / 28,800 = X

50.21 = X

As we can see, the investment had an increase of 50.21% during these 8 years. Now, the average increase in investment arises from the division of the total percentage of increase by the number of years. So, given that 50.21 / 8 = 6.27, the average annual return rate of this investment is 6.27%.

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3 years ago
Where the combined strength of two items is greater than the sum of their individual strengths. In the media business, this term
ddd [48]

Answer:

The correct answer is: Synergy.

Explanation:

The term synergy means cooperation and its most frequent use was, until now, in the field of medicine, where the synergistic effect of two organs is discussed as the improvement that is produced by the fact that these organs work together.

Applied to the business world, synergy is the production of additional effects that results from the joint work of two or more organizations, taking into account that those effects would not occur if those organizations acted separately.

Synergy in operational activities are those that apply to a function or resource in which the consequences of that collaboration are manifested. It can be synergies in marketing, such as those created when using sales channels, after-sales services or even common logistics; synergies in supplies, which generate benefits in purchase prices or payment conditions for volume purchases or transformation synergies or other operational activities, share production or management schedules or controls, etc.

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Answer:

B) Children’s clothing only

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cost of the expansion $148,000

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The projects whose NPV is positive should be considered (this eliminates decorator items)

Since the projects are mutually exclusive, only one can be chosen. So the project with the highest NPV is the best project for the store ⇒ children's clothing

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