Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
Answer:
Results are below.
Explanation:
Giving the following information:
Job 602 Job 603 Job 604
Direct materials= $ 1,500 $ 3,700 $ 2,800
Direct labor= 900 1,380 1,800
Overhead= 360 552 720
Job 602:
direct materials= $600
direct labor= $250
overhead= $100.
1) Raw materials:
Job 602= 1,500 - 600= $900
Job 603= 3,700
Job 604= 2,800
Total= $7,400
2) Direct labor:
Job 602= 900 - 250= $650
Job 603= 1,380
Job 604= 1,800
Total= $3,830
3) Overhead:
Job 602= 350 - 100= 250
Job 603= 552
Job 604= 720
Total= $1,522
4) The cost transferred to finished goods is the total cost of jobs 602 and 603.
Total cost 602= 1,500 + 900 + 360= 2,760
Total cost 603= 3,700 + 1,380 + 552= $5,632
Total cost transferred to finished goods= 2,760 + 5,632= $8,392
Answer:
The amount FVI should record is $ 617,200
Explanation:
The amount FVI should record as the cost of the land includes the initial purchase price ,broker's commission,title insurance ,miscellaneous closing costs as well as the cost of dismantling the old warehouse since all of these costs were incurred to bring the asset acquired to its present condition and location.
land purchase price $540,000
broker's commission $34,000
title insurance $2,400
miscellaneous closing costs $6,800
Cost of demolition $34,000
total costs $617,200
Answer:
A. the company's gross margin is $100,000, while its contribution margin is $60,000.
Explanation:
Under the gross margin, the net income would be
= Sales - cost of goods sold
= $300,000 - $200,000
= $100,000
Under the contribution margin, the net income would be
= Sales - cost of goods sold - variable operating expenses
= $300,000 - $200,000 - $40,000
= $60,000
Under the gross margin, no operating expenses would be considered whereas for contribution margin, only the variable operating expenses is considered
Answer:
The payback period for this project is 2.43 years.
Explanation:
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.
The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.
The payback period is the time it takes to cover the investment to be covered by returns.
The investment cost remaining in the first year
= $1,850,000 - $525,000
= $1,325,000
The investment cost remaining in the second year
= $1,325,000 - $812,500
= $512,500
The third year payback
= 
= 0.427
The total payback period
= 2.43 years
