Pop-Quiz/12 points!!

Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor

patriot [66]

Answer:

The contribution margin per unit is $5.1

Explanation:

The contribution margin per unit is the amount from selling price per unit after deducting all the related variable costs per unit. This is the amount that each product contributes towards covering the fixed costs.

Contribution margin per unit:

Selling price per unit 18.7

Less : Variable cost per unit

Direct material (7.05)

Direct labor (3.5)

Variable manufacturing Overhead (1.65)

Sales commission (1.00)

Variable Admin expense (0.40)

Contribution margin per unit 5.1

3 0

3 years ago

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,

Bas_tet [7]

Answer:

$55,000

Explanation:

The computation of the change in operating income is shown below:

= Buying cost - making cost

where,

Buying cost = Cost of producing parts × outside supplier per unit

= 60,000 parts × $3

= $180,000

And, the making cost would be

= Variable cost + fixed cost × given percentage

= $110,000 + $50,000 × 30%

= $110,000 + $15,000

= $125,000

So, the operating income would be

= $180,000 - $125,000

= $55,000

3 0

3 years ago

Nelson Ovalles worked as a cable installer for Cox Rhode Island Telecom, LLC, under an agreement with a third party, M&M Com

Illusion [34]

Answer:

No.

Explanation:

Ovalles was an M&M contractor to perform work assigned by M&M. As the question says, "Cox had minimal contact with him and limited power to control the manner in which he performed his duties.". That is the main feature of a contractor, different from an employee who works directly for Cox. The liability is completely of M&M.

5 0

2 years ago

Xinghong company is considering replacing one pf its manufacturing machines. The machine has a book value of $44000 and a remain

Artist 52 [7]

Answer:

1. Decrease in Net Income of -$8,500

2. Increase in Net Income of $50,500

3. Replace the old machine with Alternative B

Explanation:

1.

Alternative A

Cost to Buy New Machine -$117,000

Cash received to trade in old machine $54,000

Reduction in Variable Manufacturing Costs (($33,600*5 years ) - (22,700*5 years )) $54,500

Total change in Net Income -$8,500

2.

Alternative B

Cost to Buy New Machine -$118,000

Cash received to trade in old machine $54,000

Reduction in Variable Manufacturing Costs (($33,600*5years ) - (10,700*5 years )) $114,500

Total change in Net Income $50,500

3. Replacing the old machine with alternative B will result in an increased income of $50,500 so it is a good option.

5 0

3 years ago

If the midwest experiences a severe drought that damages the corn crops, we should expect the:_________.

kozerog [31]

Answer:

B) The Supply of corn will decrease and the price of corn will rise.

Explanation:

Option B is correct because the drought has damaged the corn crops. Therefore, this will affect the supply of corn in the market. Moreover, the damage of corn crops will shift the supply curve leftwards and this shift in the supply curve will push the prices upwards. Thus, the damage of corn crops will increase the prices due to a decrease in its supply.

4 0

3 years ago