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4 years ago

In a lean system, the work in process and raw materials inventory accounts are combined.

Business

1 answer:

7nadin3 [17]4 years ago

3 0

Answer: True

Explanation:

Lean is simply defined as management practices that are used by companies or organizations in order to improve the effectiveness and the efficiency during production by eliminating waste.

It should be noted that in a lean system, the work in process and raw materials inventory accounts are combined.

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The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering

user100 [1]

Solution :

1. Incremental analysis when the demand for the decorated umbrella is 10,000 units.

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80000 $190000 $110000

$\text{Less: Variable cost}$ $ 45000 $120000 $75000

Contribution $35000 $70000 $35000

$\text{Less: Additional}$ --- $10000 $10000

development cost.

$\text{Differential profit}$ $35000 $60000 $25000

The company earns an additional profit of $\$25,000$ if it decorates and sells the Rosa umbrella.

2. The company, Mohave should add the decorations to the Rosa umbrella as this would increase the net revenues of the company by an amount of $25,000.

3.a. The demand for he decorated umbrella will fall to 8,000 units due to the higher price. If the company does not make any changes to the Rosa umbrella, it could sell 10,000 units.

The incremental profit or loss is :

Incremental analysis when the demand for the Rosa umbrella is 10,000 units and for the decorated umbrella is 8,000 units is given below:

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80,000 $152,000 $72,000

$\text{Less: Variable cost}$ $45,000 $96,000 $51,000

Contribution $35,000 $56,000 $21,000

$\text{Less: Additional}$ ---- $10,000 $10,000

development cost.

$\text{Differential profit}$ $35,000 $46,000 $11,000

The incremental profits are : $11,000.

3.b. The company should decorate and sell 8000 units of the decorated umbrellas as the increase in the net profit is $11,000.

8 0

3 years ago

On January 1, 20X8, Ritt Corporation acquired 80 percent of Shaw Corporation's $10 par common stock for $956,000. On this date,

attashe74 [19]

Answer:

The amount of non-controlling interest reported should be $251,000

Explanation:

Non-controlling interest = $239,000

Net income = $190,000

Cash dividends = $125,000

Amortization of increase in plant = $100,000 ÷ 20 years = $5,000

Value of Shaw's Corporation on January 1, 20X8 = $956,000 + $239,000

= $ 1,195,000

Value of Shaw's Corporation on December 31, 20X8 = Value of Shaw's Corporation on January 1, 20X8 + Net income - Cash dividends - Amortization of increase in plant

= $ 1,195,000 + $190,000 - $125,000 - $5,000

= $1,255,000

Minority interest = 20% × $1,255,000

= $251,000

6 0

3 years ago

Which of the following types of business does not require an attorney to set up?

timama [110]

Idk I’m srry im just trying to finish my set up

8 0

3 years ago

…consider all the surplus revenues with come to him simply as trust funds, which he is called upon to administer… in a manner wh

klio [65]

This reflects the philosophy of Andrew Carnegie.
He was a famous businessman, who is actually even now considered to be one of the richest people ever. However, he was a philanthropist as well, having donated over $350 million to various charities. The sentence above was his philosophy.

5 0

3 years ago

Mary has increased her __________ skills that now allow her to access, interpret, summarize, and communicate data more effect

stepladder [879]

Answer:

Mary has increased her data literacy skills that now allow her to access, interpret, summarize, and communicate data more effectively.

Explanation:

Data analysis is the process by which data is transformed in such a way that useful information can be extracted from it. Data analysis is a key skill that is needed in most business nowadays, for example; financial data can be very crucial in the planning, budgeting and execution of projects. The process of data analysis has been automated to take raw data and produce a result that can be readily consumed easily by humans in the form of charts and graphs. From this end result, conclusions can be drawn by data experts on what the results mean.

Experts in data analysis are therefor needed to adequately access, interpret, summarize and communicate data more effectively. These are skills that need to be learned for better overall quality of the data presentation. In general, the principals are referred to as data literacy skills. Data literacy can be defined as the ability of an individual to extract useful information from raw data.

3 0

3 years ago