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Rainbow [258]
3 years ago
10

Wall-E makes 2 products, frames and hangers. Frames have a contribution margin per unit of $6.00 and hanger has a contribution m

argin per unit of $11.00. Wall-E has annual fixed costs of $290,000 units. Assume that frames and hangers are sold in a 3:1 mix (3 frames are sold for each hanger). How many units of each must be sold to break-even
Business
1 answer:
m_a_m_a [10]3 years ago
7 0

Answer:

Break-even point (units)=40,000 units

Explanation:

Giving the following information:

Frames have a contribution margin per unit of $6.00 and hanger has a contribution margin per unit of $11.00. Wall-E has annual fixed costs of $290,000 units.

We need to calculate the break-even point in units for the whole company.

Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio= (6*0.75) + (11*0.25)

Weighted average contribution margin ratio= 7.25

Break-even point (units)= 290,000/7.25

Break-even point (units)=40,000 units

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Beginning work in process inventory: Units in beginning work in process inventory500 Materials costs$ 7,800 Conversion costs$ 9,
Gre4nikov [31]

Answer:

$15.76

Explanation:

beginning WIP 500 units

materials 85% complete, so 15% added during the period (EUP during current month = 75 units)

conversion costs 55% complete, so 45% added during the period (EUP during current month = 225 units)

units started 7,000

units transferred out 6,100

units started and transferred out = 6,100 - 500 = 5,600 (EUP = 5,600 units)

ending WIP 1,400 units

materials 60% complete (EUP = 840 units)

conversion costs 50% complete (EUP = 700 units)

materials cost for the month = $102,700

total EUP for the month = 6,515 units

total cost per EUP for materials = $102,700 / 6,515 = $15.7636 ≈ $15.76

4 0
3 years ago
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three wareho
morpeh [17]

Answer:

25,768

Explanation:

The square root rule of inventory states that the average inventory level can be calculated by multiplying the total inventory by the square root of the number of future warehouses divided by the number of the current warehouses.It's purpose is to estimate the effect of risk pooling.

Workings

X2 =( X1)* ( N2/N1)

Inventory per warehouse = 4000

No of Warehouse = 5

To inventory = 4000*5 = 20,0000

New no of Ware house = 3

20000(√5/3)=

20000*1.29=25,768

6 0
3 years ago
When preparing journal entries, the account titles are selected using either the dropdown menu (if available) or by keying in th
Ira Lisetskai [31]

Answer:

True

Explanation:

The journal entries are the recording of the transactions in which the one account is debited and another account is credited along with the description and the date.

If we take the example.

Rent is paid for cash for $10,000

So, the journal entry would be

Rent expense A/c Dr $10,000

      To Cash A/c $10,000

(Being rent is paid for cash is recorded)

So, the given statement is true

6 0
3 years ago
Your most senior employee is not willing to change how she does her job because she is satisfied with the current approach she u
Mademuasel [1]

Answer:

1) Use your knowledge of organizational change to select the word or phrase that best describes the situation.

  • dynamic balance of forces working in opposing directions.

In this case, she is you most senior employee and that gives her a certain status within the organization. At the same time, you know that change is needed. So opposing forces must be balanced in order to achieve change.

2) The introduction of the new computer system isn’t going as planned, but you are doing all that you can to coordinate activities with the change agent to ensure that business is minimally affected.

  • Change analysis

Explanation:

Lewin's change process involves three stages:

  • unfreezing: members of the organization must feel that change is needed.
  • changing: proceed to change the members' behavior
  • refreezing: consolidate the new behavior as the new norm

Business change analysis refers to integrating different changes in the production processes of a business. Different aspects of the business must change in response to changes needed by the business as a whole. In this case, the company must implement a new computer system but things are not going smoothly. The business change manager is responsible for implementing all the necessary changes successfully.

6 0
3 years ago
Ivanhoe Company has the following cumulative taxable temporary differences: 12/31/22 12/31/21 $3200000 $2260000 The tax rate ena
FrozenT [24]

Answer:

$6,840,000

Explanation:

        12/31/21                   12/31/22    

    $2260000               $3200000

taxable income for 2022 = $5,900,000

Ivanhoe's pretax financial income = 2022 taxable income + (temporary differences 2022 - temporary differences 2021) = $5,900,000 + ($3,200,000 - $2,260,000) = $5,900,000 + $940,000 = $6,840,000

A taxable temporary difference will affect future taxable amounts when determining a profit or loss.

7 0
3 years ago
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