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sveticcg [70]
3 years ago
8

1. I Co. recently began production of a new product, an electric clock, which required the investment of

Business
1 answer:
dlinn [17]3 years ago
7 0

Answer:

I Co.

1. Desired profit = 10% of invested assets

= $3,200,000 x 10%

= $320,000

2a. Total Variable cost per unit

Variable costs Per unit :

Direct labor                                 $ 10

Direct materials                              6

Factory overhead                         $ 4

Variable Product Cost  ($20)

Administrative and selling           $ 5

Total Variable cost per unit     $25

b. Total fixed cost per unit

Total fixed cost per unit = $2,400,000/160,000 = $15

c. The selling price per unit

Sales / quantity = $7,520,000/160,000 = $47

Explanation:

Data:

Variable costs Per unit :

Direct labor                         $ 10

Direct materials                      6

Factory overhead                $ 4

Variable Product Cost      $20

Administrative and selling  $ 5

Total Variable cost per unit      $25

EA

Fixed costs:

Manufacturing                       $ 1,600,000

Administrative and selling          800,000

Total fixed costs                   $2,400,000

b) Cost-plus approach to product pricing:  This approach requires the addition of the direct materials, direct labor, and overhead costs

c) Required profit = 10% of invested assets

= $3,200,000 x 10%

= $320,000

d) Product cost:

Variable cost = $20 x 160,000 = $3,200,000

Fixed manufacturing costs          $1,600,000

Total production cost                  $4,800,000

Product cost per unit $4,800,000/160,000 = $30

e) Income Statement to determine Sales Revenue

Sales                           $7,520,000

Cost of goods sold

      ($30 x 160,000)     4,800,000

Gross profit                $2,720,000

Fixed Costs:

Manufacturing            $ 1,600,000

Administrative & selling  800,000

Profit                             $320,000

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Answer:

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Which of the following is an objective of capital budgeting?
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Answer:

C. To earn a satisfactory return on investment.

Explanation:

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Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
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Answer:

$0.26

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