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4 years ago

The manufacturing costs of Rosenthal Industries for the first three months of the year follow:

Business

1 answer:

svlad2 [7]4 years ago

7 0

Answer:

variable cost per unit = 46

fixed cost 188680

Explanation:

The high-low method consist in compare each frame to get the variable and fixed components

5440 high

2040 low

3400 difference

437920 high

281520 low

156400 difference

variable cost =15600/3400

variable cost = 46

the reasoning is that the additional 3400 units generated that cost.

Now:

we múltiple by the units by the production and get total variable

46 * 2040 = 93840 total variable

lastly total cost - total variable = fixed

281520 - 93840 = 188680

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Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

avanturin [10]

Answer:

Net income will be $352,500 more if the company continues with Luxury watches only.

Explanation:

Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:

Westfall Watch

Income Statement (Contribution Margin approach)

Particulars $

Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000

Less: Variable expenses

[$255,000 + ($255,000 x 250%)] (892,500)

Contribution Margin 507,500

Less: Fixed Cost (80,000)

Net Income 427,500

Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.

6 0

3 years ago

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

makvit [3.9K]

Answer:

$133,000 decrease

Explanation:

The computation of the impact on the operating income is shown below:

Sales for the year $1,052,000

Less:

Variable cost -$862,000

Contribution margin $190,000

Less:

Fixed cost for 30% of $190,000 -$57,000

Impact on the operating income $133,000

This amount reflects the decrease in the operating income

5 0

3 years ago

If the YTM on a 20 year T-bond is lower than the YTM on a 3 month T-bill, then, according to the expectations hypothesis theory,

jek_recluse [69]

Answer:

The correct option is C,investors expect future short rates to be lower than the current 3 month interest rate.

Explanation:

The yield to maturity is the effective interest rate on a debt obligation which implies the actual return that investors receive by investing in bonds.

The yield to maturity is different from the coupon interest which is the actual amount of cash receivable by investors periodically.

Specifically,a higher yield on short term T-bill means that investors expect that the future interest rates on long-term dated bonds to be much lower.

This is due to the fact the longer the time to maturity the more uncertain the interest rates in the bond markets become.

6 0

3 years ago

Supply-side economics attempts to stimulate output and lower unemployment by

yawa3891 [41]

Supply-side economics attempts to stimulate output and lower unemployment by reducing taxes to stimulate investment and consumer spending.

<h3>What is supply-side economics?</h3>

Supply-side economics is a economics theory that focuses on the supply of labour and goods. It postulates that taxes and benefits can be used as incentives to stimulate the economy.

Supply-side economics was introduced by Arthur Laffer and implemented by Pres. Ronald Reagan in the 1980s.

4 0

2 years ago

If the government increases expenditure without raising taxes, this will

olga2289 [7]

If the government increases expenditure without raising taxes, this will <span>cause the interest rate to increase, thereby, reducing private investment and crowding out the private sector and </span>cause a decrease in the domestic exchange rate which will increase exports and decrease imports. Expenditures is increasing the amount of money and money available to be spent. In this case, the government is increasing the amount of money that tis available to be spent but they aren't imposing taxes on consumers with the increase. <span>
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3 0

3 years ago