A small clothing firm currently produces 50,000 shirts and blouses per month. the costs of its factory, raw materials, and labor are $500,000 per month. if the company is to increase production by 5,000 and that requires additional labor and raw material expense of $100,000, what is the best estimate of costs of the increased production is $100,000.

Most people think you'll make a kajillion dollars and be well on your way to overnight stardom. But the reality is that the profit margins on clothing are notoriously low. According to industry analysts, you're looking at 4-13% profit margins. That means for every $100 you invest, you get $104-$113 back.

Production is the process of making or manufacturing goods and products from raw materials or components. In other words, production takes inputs and uses them to create an output that is fit for the consumption of a good or product that has value to an end-user or customer.

Learn more about Production here

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8 0

2 years ago

Which of the following is an example of a variable cost?

valentinak56 [21]

A. Rent for a warehouse

Hope this helped. Good luck!

3 0

3 years ago

Read 2 more answers

Ayayai Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,

Ket [755]

Answer:

Option (B) is correct.

Explanation:

Amount of which adjusting entry required:

= Amount of uncollectible accounts - Balance in Allowance for uncollectible accounts

= (Balance in accounts receivable × Estimated percentage of accounts receivable to be uncollectible) - Balance in Allowance for uncollectible accounts

= ($200,000 × 4%) - $2,000

= $8,000 - $2,000

= $6,000

Therefore, the adjusting entry is as follows:

Bad debt expense A/c Dr. $6,000

To Allowance for uncollectible accounts $6,000

(To record the bad debt expense)

5 0

4 years ago

Smith Company reported pretax book income of $419,000. Included in the computation were favorable temporary differences of $53,8

EleoNora [17]

Answer:

Smith’s deferred income tax expense or Benefit would be $10,846

Explanation:

In this question, we are asked to calculate Smith’s deferred income tax expense or benefit. We proceed as follows:

Firstly, we calculate the net favorable temporary difference.

Mathematically, the net favorable temporary difference = Favorable temporary difference - Unfavorable temporary difference.

From the question, we can identify that:

Favorable temporary difference = $53,800

Unfavorable temporary difference = $21,900

Hence, the net favorable temporary difference = $53,800 - $21,900 = $31,900

Now, using a tax rate of 34%, Smith’s deferred income tax expense or Benefit would be 34% of $31,900

= 34/100 * 31,900 = $10,846

6 0

3 years ago