1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erik [133]
3 years ago
11

Estrada Corporation produced 300,000 watches that it sold for $35 each. The company determined that fixed manufacturing cost per

unit was $14 per watch. The company reported a $2,700,000 gross margin on its income statement.
Determine the variable cost per unit, the total variable cost, the total contribution margin.
Business
1 answer:
Advocard [28]3 years ago
4 0

Answer:

Variable cost per unit = $12

The total variable cost = $3,600,000

The total contribution margin = $6,900,000

Explanation:

Number of units produced = 300,000

Selling cost = $35

Revenue = 300,000 × $35

               = $10,500,000

Fixed cost = $14 per unit

Total fixed cost = 300,000 × $14

                          = $4,200,000

Gross margin = $2,700,000

Gross margin is the difference between the Revenue earned and the total cost.

Total cost = $10,500,000 - $2,700,000

                 = $7,800,000

Total cost = Total Fixed cost + Total variable cost

Total variable cost = $7,800,000 - $4,200,000

                               = $3,600,000

Variable cost per unit is the ratio of the total variable cost to the number of units produced.

Variable cost per unit = $3,600,000/300000

                                    = $12

Total contribution margin is the difference between the total revenue and the total variable cost.

Total contribution margin = Total revenue - Total variable cost

                                           = $10,500,000 - $3,600,000

                                           = $6,900,000

You might be interested in
#20 Employers include __________ plan coverage in fringe benefit programs to retain high-quality employees and ensure productivi
harina [27]

Answer:

Group health

Explanation:

  • As a company it's the duty of owner and management to take care of their employees health
  • It's difficult to run individual healt programmes hence companies run group health programs
8 0
2 years ago
Lisa Smith has her age listed on her driver's license as being three years younger than it actually is. This is also how old she
Lubov Fominskaja [6]

Answer:

Misstatement of age

Explanation:

If the insurance company knows that a person has intentionally lied about his/her age, they will adjust the insurance amount and premium to match the correct age of the insured. E.g. in this case, Lisa will probably be required to pay a higher premium on her policy, and depending on her age, the insurance amount might be lower.

4 0
3 years ago
Identify each of the following features as applying more to job order operations, process operations or both job order and proce
Fynjy0 [20]

Answer:

Identification of Features Applying More to Job Order Operations, Process Operations, or Both:

Features  

1. Cost object is a process.                                  Process Operations

2. Measures unit costs only at period-end.        Process Operations

3. Uses indirect costs.                                          Both

4. Transfers costs between Work in              

   Process Inventory accounts.                            Process Operations

5. Uses only one Work in Process account.       Job Operations

6. Uses materials, labor, and overhead costs.    Both

Explanation:

The main difference between the two operations is the manner costs are accumulated.  Job operations accumulate costs for different jobs that are not similar.  Process operations accumulate costs to show the process a product passes through.  The product of a process operation is not unique like the product of a job operation.

6 0
2 years ago
The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software program on its Web site to allow customers such
elixir [45]

Answer:

The correct answer is letter "A": B2B.

Explanation:

In a B2B business model goods or services are traded between two or more businesses. Most parts of these transactions are dedicated to the exchange of raw materials. Customers are part of the process only when the final product is offered in the open market but not during the B2B business process.

8 0
3 years ago
What is the slope of the line represented by the equation y=-2/3<br>- 5x?​
iren [92.7K]

Answer:

the slope is -5 or -5/1

Explanation:

7 0
3 years ago
Other questions:
  • True or false in addition to several short term effects of alcohol or drugs on the body other negative physiological physical ps
    12·1 answer
  • The arrival of personal computer technology gave rise to client server networks that replaced traditional mainframe and minicomp
    7·1 answer
  • During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security S
    12·1 answer
  • Protecting intellectual property rights is important to a free enterprise system because:
    7·1 answer
  • s has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $3,
    8·1 answer
  • Friends of the Court" documents filed by interested parties to encourage the Court to grant or deny certiorari, or to urge the C
    10·1 answer
  • A(n)
    5·1 answer
  • The following are methods of exchange EXCEPT
    11·1 answer
  • Which type of ma plan is an hmo plan that also covers some benefits out-of-network, generally at a higher cost?.
    11·1 answer
  • Using the straight-line method, depreciation for 2024 and book value on december 31, 2024, would be:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!