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kobusy [5.1K]
3 years ago
9

Premium Company makes cardboard boxes. During the most recent accounting period Premium paid $60,000 for raw materials, $48,000

for labor, and $52,000 for overhead costs that were incurred to make boxes. Premium Company started and completed 400,000 boxes. Premium desires to earn a gross margin that is equal to 40% of product cost. Based on this information the selling price per box is: a. $0.40 b. $0.56 c. $0.50 d. $0.70
Business
1 answer:
just olya [345]3 years ago
7 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Raw material= $60,000

Direct labor= $48,000

Overhead= $52,000

Premium Company started and completed 400,000 boxes.

First, we need to calculate the total manufacturing cost and unitary cost:

Total cost= Direct material + direct labor + overhead

Total cost= 60,000 + 48,000 + 52,000= 160,000

Unitary cost= 160,000/400,000= $0.4 per box

Now, we can calculate the selling price:

Selling price= Unitary cost*mark up= 0.4*1.40= $0.56

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Answer:

B. $2,000

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   =$100,000.00x 0.08

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Interest for 3 months

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   =0.25x$8000.00

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3 years ago
Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
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Answer:

$519,799.59

Explanation:  

Discount rate = R = 14.50%

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1            218,000.00          0.873362            190,393.0131  

2           224,000.00          0.762762           170,858.6793

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<u />

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The following per unit cost information is available: direct materials $36, direct labor $24, variable manufacturing overhead $1
oksian1 [2.3K]

Answer:

Mark−up percentage = 18.75%

Explanation:

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