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Bezzdna [24]
3 years ago
15

Polar Industries makes refrigerators. Polars management wants to market refrigerators to students in dorm rooms and small apartm

ents by making a compact refrigerator. The competition, led by Walmart, prices small refrigerators at $76 each. The production manager at Polar Industries estimates that the small refrigerator could be produced for the following manufacturing costs.
Direct materials $24
Direct labor 10
Manufacturing overhead 8
Total $42

Polar's management wants to make an operating margin of 10 percent (operating margin equals revenues minus manufacturing costs).

Suppose Polar uses cost-plus pricing, setting the price to manufacturing costs plus 10 percent of manufacturing costs, What price should it charge for the refrigerator?
Business
1 answer:
mote1985 [20]3 years ago
6 0

Answer:

Selling price = $46.2

Explanation:

<em>Cost plus pricing determines the price of the product by adding a given percentage of the cost to the manufacturing cost to arrive at the price.</em>

<em>Selling Price = Manufacturing Cost + (mark-up(%)×  manufacturing cost)</em>

Selling price :

= 42 + (10%× 42)

= $46.2

Selling price  = $46.2

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mr Goodwill [35]
It’s Spanish lol lol lol
6 0
2 years ago
Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer c
Ratling [72]

Answer:

The depreciation for 2020 is $233.33

Explanation:

Under the MACRS, computer useful life is 5 years.

The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.

As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33

8 0
3 years ago
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell
avanturin [10]

Answer:

The company's monthly net operating income increases $4,600

Explanation:

The company is currently selling 6,000 units per month:

Total sales = $130 x 6,000 = $780,000

Total Variable expenses = $78 x 6,000 = $468,000

Net operating income = Total sales - Total Variable expenses - Fixed expenses = $780,000 - $468,000  - $184,000 = $128,000

If Kuzio Corporation increases in the monthly advertising budget of $5,800:

Total sales = $130 x 6,200 = $806,000

Total Variable expenses = $78 x 6,200 = $483,600

Fixed expenses = $184,000 + $5,800 = $189,800

Net operating income = $806,000 - $483,600 - $189,800 = $132,600

The company's monthly net operating income increases = $132,600 - $128,000 = $4,600

7 0
3 years ago
Loc Nguyen sold his personally owned boat for $6,000. Loc is not self-employed and he did not have any outstanding loans on the
lesantik [10]

Question Completion with options:

Select one:

a. Include the $5,000 in total income on Form 1040

b. Include the $5,000 as a capital gain on Schedule D

c. Include the $5,000 as self-employment income on Schedule C

d. Include the $5,000 as interest income on Form 1040

Answer:

Loc Nguyen should:

b. Include the $5,000 as a capital gain on Schedule D.

Explanation:

Both long-term and short-term capital gains and deductible capital losses are reported on Schedule D of Form 1040.  If the gain from the sale of the boat is a long-term capital gain, it will be subject to the lower capital gain tax rate of up to 20%, unlike the short-term capital gain that attracts a rate of up to 37%.

3 0
3 years ago
Required: Accounting equation Ans: assets, capital, liabilities SE-2. You are provided the following information: i. Commencemen
Tasya [4]

Answer:

<h2> particular. l.f. Dr. rs. Cr. rs. </h2>

I) bank a/c. 1,00,00.

to capital a/c. 1,00,00

( being business started with bank balance)

II) purchase a/c 40,000.

to bank a/c. 40,000

(being goods purchased on credit)

III) BANK A/C 20,000.

TO GOODS A/C 20,000

(BEING GOODS SOLD ON CREDIT)

IV) FURNITURE A/C. 60,000.

TO BANK A/C. 60,000

(BEING FURNITURE PURCHASED ON CREDIT)

V) BANK A/C. 10,000.

TO FURNITURE A/C 10,000

(BEING FURNITURE SOLD ON CREDIT)

HOPE IT HELPS IM ALSO NOT COMPLETELY PERFECT AT IT

3 0
3 years ago
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