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frutty [35]
3 years ago
8

Knowledge Check 01 Product A Product B Selling price per unit$20 $15 Variable cost per unit 12 9 Contribution margin per unit$8

$6 Labor time4 minutes 2 Minutes Roberto, Inc. manufactures products A and B. Both products have a contribution margin ratio of 40%. Assume that labor time is the constrained resource and only a total of 3,000 minutes is available. Product A has a total demand of 500 units and product B has a total demand for 600 units. Considering the constraint, how many units of product B should be produced to maximize profits
Business
1 answer:
Nostrana [21]3 years ago
6 0

Answer:

600 units

Explanation:

Determine the Contribution per limiting factor for the 2 products

<u>Product A</u>

Contribution per limiting factor = Contribution per unit / Amount of Limiting Factor required per unit

                                                   = $8 / 4

                                                   = $ 2

<u>Product B</u>

Contribution per limiting factor = Contribution per unit / Amount of Limiting Factor required per unit

                                                   = $6 / 2

                                                   = $ 3

From the Contribution per limiting factor for the 2 products it can be seen that Product B has the highest Contribution per limiting factor and should be manufactured first follows by Product A.

Thus total demand of  600 units will be satisfied.

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Answer:

B. Involve using resources to research, develop, purchase, produce, distribute and market products and services.

Explanation:

A financial statement can be defined as a written report used by financial experts or accountants to quantitatively describes the financial health of a company. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Operating activities in the statement of cash-flow of a business firm gives a detailed description of the out-flow and in-flow of cash from liabilities and current assets account. Thus, all the net income or cash from all operational business activities of a company is recorded as operating activities.

Hence, operating activities involve using resources to research, develop, purchase, produce, distribute and market products and services. Some examples of operating activities are cash paid as an expense for merchandise, cash revenue generated from the sales of finished goods etc.

5 0
3 years ago
Fama and French (1992) found that the stocks of firms within the highest decile of book-to-market ratios had an average annual r
Galina-37 [17]

Answer:

1. 17.2%

2. 11.1%

Explanation:

From Fama and French (1992) research study, titled "The Cross‐Section of Expected Stock Returns," it was concluded that the stocks of firms within the highest decile of book-to-market ratios had an average annual return of 17.2%, while the stocks of firms within the lowest decile of book-to-market ratios had an average annual return of 11.1%

Hence, the correct answer is 17.2% and 11.1% respectively.

7 0
3 years ago
As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also
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As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also falls with increased consumption. this scenario describes a downward-sloping demand curve

<h3>What is a Demand Curve?</h3>

This refers to the graph or pictorial representation that shows how the demand for a commodity or service varies with changes in its price.

Hence, we can see that As the benefit of consuming more of a good falls with each additional unit, the price consumers are willing and able to pay also falls with increased consumption. this scenario describes a downward-sloping demand curve

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7 0
2 years ago
Better Beverages purchased some fixed assets classified as five-year property for MACRS. The assets cost $108,000. The MACRS rat
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Answer:

e. $89,337.60

Explanation:

Given that

The cost of the asset = $108,000

And, the MACRS rate is .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6

So the accumulated depreciation at the end of the year 4 is

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By multiplying the cost of the asset with the MACRS rate upto fourth year we can get the accumulated depreciation

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3 years ago
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<h3>What is flexible budget?</h3>

A flexible budget is one that varies in response to changes in actual revenue or other activities. As a result, the budget is reasonably close to the actual results. This technique differs from the more conventional static budget, which comprises only fixed spending numbers that do not change in response to real revenue levels.

A flexible budget will include budget lines for various amounts. For example, if your monthly widget production is 100, your variable admin costs could be $200. However, if you produce 200 widgets every month, your variable admin costs will rise to $400.

Entrepreneurs can adapt with change thanks to flexible, rolling budgets. This nimble planning process lets you adjust spending throughout the year

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