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Alik [6]
3 years ago
5

Rundle Company makes fine jewelry that it sells to department stores throughout the United States. Rundle is trying to decide wh

ich of the two bracelets to manufacture. Cost data pertaining to the two choices follow: Bracelet A Bracelet B Cost of materials per unit $ 41 $ 48 Cost of labor per unit 49 49 Advertising cost per year 9,500 6,200 Annual depreciation on existing equipment 6,000 5,600 Required Identify the fixed costs and determine the amount of fixed cost for each product. Identify the variable costs and determine the amount of variable cost per unit for each product. Identify the avoidable costs and determine the amount of avoidable cost for each product.
Business
1 answer:
kolbaska11 [484]3 years ago
6 0

Answer:

a) The fixed costs pertain to Advertising and Depreciation.

For product A, the fixed costs are $9,500 + $6,000 = $15,500.

For product B, the fixed costs are $6,200 + $5,600 = $11,800.

b) The variable costs are related to costs of materials and labour.

For product A, the Variable costs per unit = $41 + $49 = $90.

For product B, the Variable costs per unit = $48 + $49 = $97.

c) The avoidable costs relate to Advertising.

For product A, the avoidable cost = $9,500.

For product B, the avoidable cost = $6,200.

Explanation:

Fixed costs are costs which do not vary with the quantity or units of production.  Whether there is production or not, most fixed costs must be incurred, provided the company is in business.  Examples include Rent, Depreciation, Salaries of Administration staff, etc.  Their total costs are fixed while their per unit costs vary.

Variable costs are costs which vary with production units.  Such costs are incurred when actual production take place.  Unit costs do not vary but the total costs vary depending on the quantity produced.  Examples include costs of materials and direct labour.

Avoidable costs are discretionary costs which management can decide to do without.  While most avoidable costs are necessary for business, they are not indispensable.  A good example of avoidable cost is Advertising.

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Which financial statement would best display a company's plant, property, and equipmnt used everyday
yuradex [85]

Answer:

Balance sheet

Explanation:

Balance sheet is referred to as the statement of assets and liabilities. Property plant and equipment are shown in balance sheet with a schedule of addition, deletion and depreciation is attached to it. Hence, the financial statement that would best display a company's plant, property and equipment used everyday is the Balance sheet.

4 0
3 years ago
Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.52, $1.60, and $1.6
77julia77 [94]

Answer:

The current market price per share is $14.82

Explanation:

The current price of the stock can be calculated using the DDM or dividend discount model. The DDM values the stock based on the present value of the expected future dividends from the stock.

The following is the formula for the price of the stock today,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  + ... +  Dn / (1+r)^n  +  Terminal value

The terminal value is the cumulative value of all the future dividends calculated when the dividend growth becomes zero or constant. In case the dividend growth becomes zero, like in this case, the terminal value is calculated as follows,

Terminal value = Dividend / r

Where,

  • r is the required rate of return
  • Dividend is the dividend which will remain constant through out the future

So, the price of this stock today is,

P0 = 1.52 / (1+0.11)  +  1.60 / (1+0.11)^2  +  1.62 / (1+0.11)^3  +  

(1.65 / 0.11) / (1+0.11)^3

P0 = $14.82

4 0
3 years ago
An organization's internal stakeholders consist of Multiple Choice a.the board of directors, customers, and local government.b.t
Andrej [43]

The board of directors, employees, and owners are an organization's internal stakeholders.

<h3>What is the role of internal stakeholders?</h3>

People who have a direct interest in a company, such as through employment, ownership, or investment, are said to be internal stakeholders. External stakeholders are people who do not directly work for a company but are nonetheless impacted in some way by the decisions and results of the enterprise. They participate in the company's management and have voting rights.

They are both members of the board of directors and the company's largest investors. As a result, they possess all the authority that other members of higher-level management do and are able to alter the course of the business. According to research, employees are by far the most significant stakeholder group for organizations, coming out ahead of clients, vendors, neighborhood associations, and shareholders by a wide margin.

To learn more about internal stakeholders, visit:

brainly.com/question/4414143

#SPJ1

7 0
1 year ago
When purchasing a vehicle which of the following would initially offer the lowest monthly payment
choli [55]

Answer:

Balloon payment plan

Explanation:

4 0
3 years ago
Read 2 more answers
A company had $7,040,000 in net income for the year. Its net sales were $15,600,000 for the same period. Calculate its profit ma
ivann1987 [24]

The measure of a product, service, or company's profitability is its profit margin. The bigger the percentage representing the profit margin, the more profitable the company is.

Profitability is gauged by profit margin. Finding the profit as a proportion of revenue is used to calculate it.

Profit margin=44.9%

Explanation to the answer:

Profit margin =Net income / sales

                    =7,050,000 / $ 15,700,000

                    =0.44904

                    =44.9%

Profit margin =44.9%

Learn more about profit margin here brainly.com/question/24161087

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5 0
2 years ago
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