Answer:
Unit cost
$
Variable costing 18
Absorption costing 26.5
Explanation:
<em>Variable costing values every unit produced at the marginal cost</em>. Marginal cost is the sum of direct material, direct labor and variable overhead.
Marginal cost = 7.50 + 10.50 =$18
<em>Absorption costing values every unit at full cost</em>. Full cost is the sum of marginal and fixed overhead cost per unit,
Fixed overhead cost per unit = $297,500/35,000=8.5
Full cost = 7.50 + 10.50 + 8.50= $26.5
Unit cost
$
Variable costing 18
Absorption costing 26.5
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Answer:
Explanation:
A point on U=800 is (5, 16)
From BL:
400*F+100D =4000
400*5+100*16 =3600<4000
Therefore u = 800 affordable.
U= 1200
F = 1200/10D
If D = 20
F = 1200/200
=6
Now from BL:
400*6+100*20= 2400+2000=4400>4000
Not affordable.
Maximization:
L = 10DF+ʎ[100*D+400*F – 4000]
Differentiating wrt D and F:
dL/dD = 10F + ʎ*100
dL/dF = 10D +ʎ*400
equating to zero;
ʎ= -F/10
ʎ=-D/40
equating the two:
F/10=D/40
D = 4F
From BL:
400*F+100*D = 4000
400F+100*4F = 4000
800F = 4000
F = 5
D = 4*5=20
Answer:
True
Explanation:
Now the initial jounal entry of the Unearned Fees was recorded as:
Dr Cash received XX
Cr Unearned Fees XX ........... Is a liability
Now the reason why the statement is true can be best explained from the following equation:
Equity = Ordinary Stock + (Revenue - Expense - Dividend)
Now just look at the above equation and the journal entry, the unearned fees increased the liability and if this amount is not waived off to the amount the unearned fees are converted to earnings, I mean if you have received the amount for 3 months services in advance and only one month services are delivered then the 1/3 part of the unearned fees will recognized as earned. If it is not complied then we can see in the above equation that the revenue would decrease and this decrease will decrease the equity.
During the process of operational planning, management must compare market demand with Capacity.
Capacity refers to the company's ability to fulfill the amount of demand that exist for the products. If a company has a lot of orders without the ability to fulfill it, they will not be able to rake in the profit from the market.
Answer:
8. The opportunity cost is c. wearing the shoes
9. To gain the most satisfaction possible
10. A new toy is less exciting to a child with many toys
Explanation:
