Answer:
a. Beck Inc. = 5.00 and Bryant Inc. = 2.50
b. Beck Inc. = $100,000 and 100% : Bryant Inc. = $150,000 and 50 %
c. True.
Explanation:
Degree of Operating Leverage shows, the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.
Degree of Operating Leverage = Contribution ÷ EBIT
Thus,
Beck Inc = $500,000 ÷ $100,000
= 5.00
Bryant Inc. = $750,000 ÷ $300,000
= 2.50
<em>If Sales increased by 20% the effects on Incomes would be :</em>
Beck Inc = 20% × 5.00
= 100%
= $100,000 × 100%
= $100,000
Bryant Inc.= 20% × 2.50
= 50 %
= $300,000 × 50 %
= $150,000
Answer: supplier search
Explanation:
Portillo's Fast Food restaurants are in the supplier search stage in the business buying process. The supplier search refers to the stage of the business buying process whereby the buyer or the company seeks the best suppliers or vendors.
The company can compile a list of suppliers and make a research about them to know the one that's most appropriate to carry out the job at hand and will be most effective and efficient. This can be infered from the question as Portillo's is looking for a vendor that can provide a product according to its new specifications at a price that is less than what it was paying in the past.
You should call back to check on your application progression. (but not immediately after) I hope this helps!
Answer:
Chair unit cost: $ 49.72
Total cost for 675 chairs: $ 33,561
Explanation:
Direct Materials: $ 14.00
Direct Labor: 1.9 hours x $16 labor cost: $ 30.40
Overhead:
1.9 labor hours x ($ 1.6 variable rate + $ 1.20 fixed rate) = $<u> 5.32 </u>
Total unit cost: $ 49.72
Cost to produce 675 chairs:
675 charis x $ 49.72 per chair = $ 33,561
