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nlexa [21]
3 years ago
7

Beta Company expects to incur overhead costs of $20,000 per month and direct production costs of $125 per unit. The estimated pr

oduction activity for the upcoming year is 1,000 units. If the company desires to earn a gross profit of $50 per unit, the sales price per unit would be which of the following amounts
A) $379
B) $187
C) $136
D) $195
Business
1 answer:
mina [271]3 years ago
4 0

Answer:

$415

Explanation:

For computing the sales per unit first we have to determine the total sales value which is shown below:

Direct Production costs (1,000 units × $125)   $125,000

Fixed Overhead costs for the year = $20,000 × 12 months = $240,000

Total Costs for the year              $365,000

Gross Profit desired (1,000 units × $50)   $50,000

Total Sales Value desired = Costs + Profit $415,000

Now

Sales price per unit is

= $415,000 ÷ 1,000 units

= $415

This is the answer but the same is not provided

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Answer:

Reorder point is 40

Explanation:

Reorder point is the level of inventory which trigger the purchase of new inventory.

The formula for Reorder point is

Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

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The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

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2 years ago
Roberto, the vice president of marketing, is talking to Francis, a sales manager in a foreign office, about several local situat
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Answer:

The correct answer is Geocentric.

Explanation:

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6 0
3 years ago
Suppose during the course of a year an economy produces $7 trillion of consumer goods, $1 trillion of investment goods, $5 trill
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Answer:

D) $12 trillion.

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption + Investment + Government Spending + Net Export

Net Export = Export - Import

Net Export = $1 - $2 = -$1

GDP = $7 + $1 + $5 - $1 = $12

All calculations are in trillion

I hope my answer helps you.

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3 years ago
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3 0
2 years ago
Warren Company began the accounting period with a $32,000 debit balance in its accounts receivable account. During the accountin
ra1l [238]

Answer:

The answer is : $104,000                  

Explanation:

First, we have to lay out the particulars, and explain what each of them mean:

debit balance in account receivable = $32,000. This refers to an amount that cusomers owed the company at the beginning of the period.

revenue recorded = $88,000. This refers to the total sales made by the company.

At the end of the period, we are told that the account receivable contained a balance of $16,000

Therefore it means that after all the payments (both balance from previous period and sales transactions) have been made in cash, the amount which the customers owed the company = $16,000.

Hence the cash collected is calculated as follows

(debit balance at beginning + revenue) - debit balance at the end = cash collected

(32,000 + 88,000) - 16,000 = cash collected

120,000 - 16,000 = cash collected

cash collected = $104,000

6 0
3 years ago
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