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Besides lowering the price, Jackie can improve contribution margin by ensuring that:
- Quality remains the same or better
- the company leverages social media marketing which is cheaper than conventional marketing and is better targeted.
<h3>What does price reduction do?</h3>
Price reduction (if all other factors remain constant) helps to drive up demand. This is consistent with the Law of Demand in basic Economics.
If Jackie is trying to drive up profit margin, they must thus consider the options given above.
Learn more about lowering prices ta;
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Answer:
1. Throughput time.
This is the length of time it takes to transform a raw material into finished goods.
= Inspection time + Process time + Move time + Queue time
= 0.7 + 2.8 + 1.3 + 4.1
= 8.9 days
2. Manufacturing Cycle Efficiency:
= Value added time / Throughput time * 100%
= 2.8 / 8.9 * 100%
= 31%
3. Percentage of time spent on none valuable activities:
= 1 - Manufacturing cycle efficiency
= 1 - 31%
= 69%
4. Delivery Cycle time:
= Wait time + Throughput time
= 16.2 + 8.9
= 25.1 days
5. New MCE.
Queue time is eliminated:
= 8.9 - 4.1
New Throughput time = 4.8 days
MCE = 2.8 / 4.8
= 58%
Answer:
Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.
Explanation:
The computation of the operating income under variable costing is shown below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $240,000 ÷ 20,000 units
= $12 per unit
Ending Inventory units is
= 20,000 units - 15,000 units
= 5,000 units
Now Cost of ending Inventory deferred under absorption costing is
= 5,000 units × $12
= $60,000
So, the second option is correct
Answer:
The Raw Materials Inventory would have B : debits equaling $19,000
Explanation:
Raw materials are used in a multitude of products. Raw Materials Inventory is the total costs of all components currently in stock that have not yet been used in finished goods production or work-in-process.
Hawkins Manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the Raw Materials Inventory includes metal and cloth and increases: $13,000 + $6,000 = $19,000
The Raw Materials Inventory would have debits equaling $19,000
