Answer:
a. ($35,000)
Explanation:
The computation of the financial advantage or disadvantage of dropping product V860 is shown below:
= Sales - Variable cost - Avoidable fixed manufacturing - Avoidable fixed selling
= $150,000 - $72,000 - $30,000 - $13,000
= $35,000
This $35,000 would be a financial disadvantage and the fixed cost should not be considered as it is not held for decision making purpose
Hence, the correct option is a
Answer:
Vaughn Manufacturing
The amount allocated to the ending inventory on June 30 is:
$1,590
Explanation:
a) Data and Calculations:
Inventory purchases:
Date Units Cost
June 1 159 units $954
June 10 212 units 1484
June 15 212 units 1696
June 28 159 units 1431
Total 742 $5565
Average cost = $5,565/742 = $7.50
Ending Inventory = 212 * $7.50 = $1,590
Cost of goods sold = Cost of goods available for sale minus the Ending inventory
= $5,565 - $1,590
= $3,975
Alternatively, this can be calculated as follows:
Units of goods sold multiplied by the average cost
= (742 -212) * $7.50
= $3,975
The cost of goods available for sale is made up of the Beginning inventory (if any) plus purchases during the current period. When the ending inventory is subtracted from the cost of goods available for sale, the resulting figure is the cost of goods sold.
Answer:
Multiplier effect
Explanation:
Multiplier effect refers to increase in final income as a result of an injection of spending into the circular flow of income.
It refers to how demand triggers further spending.
In this question, we see how as a result of marys contract, income flows down to the plumber.
The size of the multiplier depends on the marginal propensity to consume. The greater the marginal propensity to consume, the greater the multiplier effect.
I hope my answer helps you
The lower the grace period the less interest you will pay. Grace period is the span of time that you will be paying your loan or debt. Ofcourse the longer the time span the bigger the interest you will pay since it will grow every month based on the contract
