Answer:
Effect on income= $120,000 loss
Explanation:
Giving the following information:
Sales $320,000
Variable costs $200,000
Fixed costs $140,000.
None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.
Effect on income= Sales - varaible cost
Effect on income= 320,000 - 200,000= $120,000 loss
Answer:
d. $55,600
Explanation:
Direct Labor = $34,000
Manufacturing Overhead Cost = $21,600
Conversion Cost = Direct Labor + Manufacturing Overhead Cost
Conversion Cost = $34,000 + $21,600
Conversion Cost = $55,600
So, the conversion costs during the month totaled $55,600.
Answer:
The expected return=17.78 percent
Explanation:
Step 1: Determine risk free rate, beta and market risk premium
risk free rate=4.5%
beta=1.28
market risk premium/return on market=12%
Step 2: Express the formula for expected return
The expected return can be expressed as follows;
ER=RFR+(B×EMR)
where;
ER-expected return
RFR=risk free rate
B=beta
EMR=expected market return
replacing with the values in step 1;
ER=(4.5)+(1.28×12)
ER=4.5+13.28
ER=17.78
The expected return=17.78 percent
Answer:
B. debit to WIP inventory
Explanation:
The journal entry to record the usage of direct material in production is
Work in Process Inventory Dr.
To Raw Material Inventory
(Raw materials consumed recorded)
Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.
Work in process, like raw material is an inventory account i.e an asset. A debit increases their balance whereas a credit reduces it.
Here, raw materials i.e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.
Answer:
Segmentation.
Explanation:
When a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by the consumer, this is an example of market segmentation.
Market segmentation can be defined as the process of aggregating potential consumers (buyers) into a collective groups having common or related needs and are most likely to respond similarly to marketing techniques. These consumers share some traits or characteristics together and these include locations, needs, interests,
A good market segmentation base are divided into four (4) and these are; the behavioral, demographic, psychographic and geographical. Also, these variables are used to determine its strategy or techniques for a market segmentation.
Additionally, tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as segments of one.
