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3 years ago

15

Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid

$1,800 and received 8,500 pieces of candy that are allocated among three groups. Group 1 consists of 2,500 pieces that are expected to sell for $0.15 each. Group 2 consists of 5,500 pieces that are expected to sell for $0.36 each. Group 3 consists of 500 pieces that are expected to sell for $0.72 each.
Using the relative sales value method, what is the cost per item in Group 1?
a. $0.150.b. $0.100.c. $0.120.d. $0.225.

1 answer:

Anton [14]3 years ago

8 0

Answer:

correct option is b. $0.100

Explanation:

given data

Group 1 = 2,500 pieces that expected sell = $0.25 each.

Group 2 = 5,500 pieces that expected sell = $0.60 each.

Group 3 = 500 pieces that expected sell = $1.20 each

company paid =$1,800

received = 8,500 pieces

to find out

cost per item in Group 1

solution

we get here sale value for all 3 groups that is

sale value for group 1 = 2500 × 0.15 = $375

sale value for group 2 = 5500 × 0.36 = $1980

sale value for group 3 = 500 × 0.72 = $360

so total sale value will be here as

total sale value = $375 + $1980 + $360

total sale value = $2715

now we get here % sale that is for group 1

% sale for group 1 = $\frac{375}{2715}$

% sale for group 1 = 13.81 %

and cost is here $1800

and proportion of cost for group 1 will be

proportion of cost = 1800 × 13.81%

proportion of cost = $248.58

and

cost per unit will be here as

cost per unit = $\frac{248.58}{2500}$

cost per unit = 0.10

so correct option is b. $0.100

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1 year ago

abc and xyz agree to maximize joint profits. However, while ABC produces the agreed upon amount, XYZ breaks the agreement and ea

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Answer:

The answer is "$ 140".

Explanation:

The company produces the quantity MR = MC and if there is no quantity MR = MC, the amount throughout the case MR is just greater and closest to MC to maximize profit.

Here MR = marginal income and marginal cost =MC

MR = $\frac{Overall \ sales \ change}{Quantity\ shift}$

In the above table, we could see that the amount MR = MC = 8 isn't available. Thus it produces the amount where the MR

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MR of 30 units $=\frac{(480 – 450)}{(30–25)}=6$ , similarly MR of 30 units.

Consequently, 25 units were produced and 12.5 units were produced.

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XYZ produces 12.5 + 5 = 17.5 output from 30 units.

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Total TVC = Total Cost for Variable TFC = Maximum Cost of TFC = 0.

If MC is stable, TVC = MC $\times$ Q = 8 $\times$ q, where Q = exposed to the real produced and XYZ produces 17.5 in this case.

Total expenditure (TC+) is TVC = TFC = 8 $\times$ 17.5.

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