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GarryVolchara [31]
3 years ago
7

Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2017, its first year of operation. Variabl

e manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Osawa sold 120,000 units of product at $40 per unit.
Required:

​Osawa's 2017 operating income using variable costing is​:________

(a) $ 620,000​,

​(b) $ 340,000​,

​(c) $ 200,000​,

​(d) $ 560,000​, or​

(e) none of these.

Show supporting calculations. Begin by selecting the labels used in the variable costing calculation of operating income and enter the supporting amounts. Perform the calculations in this​ step, but select the correct operating income in the next step.
Business
1 answer:
kompoz [17]3 years ago
6 0

Answer:

The correct answer is C.

Explanation:

<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>

We need to calculate the net operating income:

Sales= 120,000*40= 4,800,000

Total variable cost= (20 + 10)*120,000= (3,600,000)

Total contribution margin= 1,200,000

Fixed manufacturing costs= (600,000)

Fixed operating (nonmanufacturing) costs= (400,000)

Net operating income= 200,000

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2 years ago
If a life insurance company sells a $240,000 life insurance policy with a one year term to a 25-year old lady for $210, the prob
MrMuchimi

Answer: $112.08

Explanation:

Given that,

Life insurance policy = $240,000

Cost = $210

Amount to be paid by company to old lady if she survives (A):

= $240,000 - $210

= $239,790

Probability that she survives (P1) = 0.999592

Probability that she doesn't survives (P2) = 1 - 0.999592

                                                                     =  0.000408

Expected value of this policy for the insurance company:

= (P1 × cost of policy) - (P2 × A)

= 0.999592 × $210 -  0.000408 × $239,790

= $209.91432 - $97.83432

= $112.08

7 0
2 years ago
The practice of setting prices deliberately below ________ costs in an effort to drive a competitor out of the market is known a
snow_tiger [21]

Answer:

c. average variable

Explanation:

The options for the question are;

. a) marginal

b. average total

c. average variable

d. average fixed

Predatory pricing can be regarded as

pricing strategy which is an illegal act whereby dominant firm in an particular industry set their price low so that compitition can be eliminated, this act usually aid Monopoly in the market. It should be noted that The practice of setting prices deliberately below average variable costs in an effort to drive a competitor out of the market is known as predatory pricing.

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2 years ago
If anderson applies the initial value method in accounting for kenneth, what is the consolidated balance for the equipment accou
Xelga [282]

If Anderson applies the initial value method in accounting for Kenneth, the consolidated balance for the Equipment account as of December 31, 2021 will be $1,104,000.

Excess amortizations: (120,000 - 90,000 = 30,000/10 = 3,000 per year).

2021 Balance Goehler BV 975,000 + Kenneth BV 105,000 + Fair value adjustment 30,000 - amortization for 2017 and 2018 (3,000 × 2) = 1,104,000

What is Equipment account?

Equipment is a long-term asset account that records the cost of the equipment and is noncurrent. The income statement account will be debited for equipment depreciation over the course of its useful life Depreciation Expense and crediting the balance sheet account Accumulated Depreciation.

A company's usage of equipment as a type of fixed asset is recorded on the balance sheet under the line item "property, plant, and equipment" in the long-term assets section. Equipment is capitalized rather than immediately expensed when it is bought and put into operation. This makes sense given that these are regarded as concrete, long-term assets that help the company over a considerable amount of time. The cost of the assets is then written down throughout the duration of the machinery's useful life.

To know more about asset refer:

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#SPJ4.

Disclaimer- The question was incomplete. Check below the full question.

Anderson Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2020, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Anderson has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Anderson has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

If Anderson applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

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1 year ago
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patriot [66]

Answer:

If Sally is still a minor, she can disaffirm the contract and return the car to Bally. Contracts involving minors are not legally binding unless the minor reaffirms them once he/she is an adult or a parent also signs the contract.

In this case, Sally's contract is voidable by her and if she chooses to, she is able to void it. What happens after she returns the car depends on the state. Some state laws force Bally to return the money even if the car is wrecked. Other states have laws that require minors to return goods in good shape, and in this case, would allow Bally to deduct any repair expenses from the money he needs to return to Sally.

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2 years ago
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