Answer:
The target fixed cost are $200,000
Explanation:
According to the given data we have the following:
Target full product costs= $ 500,000
Production volume= 150,000 units
Actual variable cost= $2 per unit
Therefore, Variable costs= 150,000 units × $ 2 = $ 300,000
In order to calculate the the target fixed cost we would have to make the following calculation:
Target fixed cost=Target full product costs-Variable costs
Target fixed cost=$ 500,000-$ 300,000= $ 200,000
The target fixed cost are $200,000
<span>A spreadsheet would be a good choice for setting up a budget (choice B). This would allow Randy the ability to enter in expenses and savings, as well as set up charts and graphs that show what projections will be for current and future savings.</span>
Answer:
Parramore's cash conversion cycle (CCC) is <u>85.88 days</u>.
Explanation:
The cash conversion cycle (CCC) refers to a metric that is used to express the time or number of days a firm takes to convert its inventory and other investments resources into cash flows from sales.
CCC has three components: Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO). CCC can therefore be calculated using these three components as follows:
CCC = DIO + DSO - DPO ........................... (1)
We need to calculate each of these components first as follows:
DIO = (Inventories / Cost of good sold) * 365 = [3 / (65% * 17)] * 365 = 99.0950226244344
DSO = (Receivables / Sales) * 365 = (4 / 17) * 365 = 85.8823529411765
DPO = (Payable / Cost of good sold) * 365 = [3 / (65% * 17)] * 365 = 99.0950226244344
Substituting all the values into equation (1), we have:
CCC = 99.0950226244344 + 85.8823529411765 + 99.0950226244344 = 85.88 days.
Therefore, Parramore's cash conversion cycle (CCC) is <u>85.88 days</u>. That is, it takes Parramore Corp 85.88 days to convert its inventory and other investments resources into cash flows from sales.