Answer:
the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000
Explanation:
The numbers are missing, so i looked them up:
sales price variable costs machine hours
Couches $550 $350 0.333
Beds $750 $395 0.5
total machine hours = 5,200
the constraint here is machine hours, so we must determine the contribution margin per machine hour:
- couches = $200 / 0.333 = $600
- beds = $355 / 0.5 = $710
since the contribution margin per machine hour is higher for beds, then the company should produce 5,200 / 0.5 = 10,400 beds, resulting in a gross profit of $3,692,000
Answer:
Income statement using absorption costing.
Sales $756,000
Less Cost of Goods Sold
Opening Stock $0
Total Manufacturing Costs $655,000
Less Closing Stock ($104,800) ($550,200)
Gross Profit $205,800
Less Operating Expenses
Selling and administrative expenses:
Variable $35,000
Fixed $10,500 ($45,500)
Net Income $160,300
Explanation:
The Product cost is the to total of all manufacturing costs.
Solution :
It is given that :
Additional time obtained per week from milling machines = 350
The incremental cost = $ 2 per hour
Therefore, the allowable increase for milling operation is 400.
This indicates that we can accommodate additional constraint RHS of hours.
Also we have to consider the impact on the profit of 2.25 which is an incremental cost of is well affordable.
Answer:
<u>Social consequence entrepreneurship</u><u> </u>
Explanation:
A social consequence entrepreneurship refers to a kind of business which aims at profit making at the same time driven by the motive of creating a positive social impact.
These refer to those ventures created with an object of tackling and overcoming social issues and at the same time create a positive social change.
These could be both profit making or not for profit organizations, though the majority of them belong to the latter category.
In the given case, Sword and Plough hire army veterans to create products and donates ten percent of the profits it earns to veteran organizations. Thus, the company aims at making profits and at the same time serve and benefit a particular segment of customers. Thus, this is an example of Social consequence entrepreneurship.
Answer:
to make sure people attract with the product so they want to but it soon or sooner ..