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qwelly [4]
3 years ago
9

Precise Machinery is analyzing a proposed project that is expected to sell 1,450 units, ±3 percent. The expected variable cost p

er unit is $139 and the expected fixed costs are $123,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $39,000. The sales price is estimated at $349 per unit, ±1 percent. What is the contribution margin per unit under the best-case scenario?
Business
1 answer:
Mandarinka [93]3 years ago
3 0

Answer:

$221.86

Explanation:

The computation of the contribution margin per unit is shown below:

Given that

Sale price per unit= $349

Variable cost per unit = $139

And we know that

Contribution margin per unit = Sale price - variable cost

where,

Sale price is

= $349 × 1.03

= $359.47

And,

Variable cost is

= $139 × $0.99

= $137.61

So, the contribution margin is

= $359.47 - $137.61

= $221.86

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Addison Co. budgets production of 2,750 units during the second quarter. Other information is as follows: Direct labor Each fini
Ilya [14]

Answer:

Direct Labor Hours   Budget        8250

Direct Labor Costs Budget          $ 57750

Factory Overhead Budget  $ 614250

Explanation:

<em>We multiply the direct labor hours per unit to the number of units to get the total direct labor hours  which are again multiplied with the direct labor cost per hour to get the total direct labor costs.</em>

Addison Co.

Direct Labor Budget

                                           Quarter II

Production units                2750

<u>Direct Labor per unit            3        </u>

Direct Labor Hours           8250

<u>Direct Labor Cost / Hr         $7        </u>

Direct Labor Costs           $ 57750

We multiply the direct labor costs  with variable overhead per hour to get the variable costs which are added to the fixed costs per quarter to get the total factory overhead budget.

Addison Co.

Factory Overhead  Budget

                                           Quarter II

Direct Labor Hours           8250

<u>Variable OH / Hr                 $ 9         </u>

Variable Overheads        $ 74250

<u>+Fixed Overheads             $ 540,000</u>

Factory Overhead Budget  $ 614250

5 0
3 years ago
what changes do you recommend precision make to the performance appraisal process to align it with a merit pay program?
valentinak56 [21]

Answer:

Since, the merit pay program is based on the performance appraisal. The better the performance, the better will be bonuses and benefits. So you will first have to improve the method of job appraisal.

Explanation:

4 0
3 years ago
Read 2 more answers
The rate of return that considers compounding of returns of the time horizon of an investment is:
Nutka1998 [239]

Answer:

B. geometric rate of return

Explanation:

The geometric mean is the average growth of an investment computed by multiplying n variables and then taking the nth –root. Geometric Average Return is used for computation of Average rate per period on an investment compounded over multiple time periods. It is the average set of products technically defined as the 'n' th root products of the expected number of periods.Geometric mean takes several values and multiplies them together and sets them to the 1/nth power.

4 0
3 years ago
Read 2 more answers
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
adelina 88 [10]

Answer:

B. a debit to Allen, Capital for $3,000.

Explanation:

Capital after admission: 220,000

Daniel receives a fifth so 20%: 20% of 220,000  = 44,000

Daniel investment 40,000

So there is a 4,000 bonus that will be taken between the old partners at their share ratio:

Allen 4,000 x 3/4  = 3,000

Daniel 4,000 x 1/4 = 1,000

The journal entry wil lbe:

cash 40,000

allen 3,000

daniel 1,000

       davin         44,000

7 0
3 years ago
Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract
Butoxors [25]

Answer:

= $550,000.

Explanation:

Given that:

  • Fixed cost = $500,000
  • 1,000 new customer accounts in the first year
  • Cost $50 per year to service

As we know that :

the total cost of opening the new branch and remaining open for one year = fixed cost + variable cost

= $500,000 + (50*1000)

=  $500,000 + $50,000

= $550,000

Hope it will find you well.

5 0
3 years ago
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