1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga_2 [115]
3 years ago
7

Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of

58,700 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $605,000. Fixed factory overhead cost.........................................$38,500 Fixed selling and administrative costs........................ 8,000 Variable direct materials cost per unit........................ 5.17 Variable direct labor cost per unit................................1.88 Variable factory overhead cost per unit.......................1.13 Variable selling and administrative cost per unit........ 4.50 The dollar amount of desired profit from the production and sale of the company's product is:a. $12.11b. $12.88c. $15d. $13.50
Business
1 answer:
skelet666 [1.2K]3 years ago
3 0

Answer:

Correct answer is C. $ dollars.

Calculation:

Rate of Retun PU = (21%*605,000)/58,700 = 2.16

Fixed factory overhead PU = 38,500/58,700 = 0.66

Fixed selling and administration PU=  8000/58,700 = 0.14

Variable DM PU = 5.17

Variable Labour PU = 1.88

Variable FOH PU = 1.33

Variable selling and Admin PU  = 4.5

By adding all above mentioned per unit cost we get 15 dollars aprox

so

Correct answer is 15 dollar.

You might be interested in
Accountants at Idle Time Gaming, Inc. work with state-of-the-art systems that create financial statements every day, but the int
Monica [59]

Answer:

<h2>One important advantage of the departmentalization of any functional area in any business organisation is that the specialized employees in the specific department can coordinate and work together in any particular project or function within the department.This can remarkably enhance work quality and improve employee performance in the organisation.Hence,the correct answer is option A. in this case.</h2>

Explanation:

Departmentalization of organisational departments essentially leads to specialization of organisational functions and activities.Such specialization should be supported and facilitated by proper coordination and teamwork of the respective employees.This can essentially lead to a better professional concentration and expert involvement which not only enhances the quality of departmental projects or activities but guarantees smooth and timely completion of the group projects within the respective departments.In this case,if the concerned financial,managerial and tax accountants can be grouped together according to their respective areas of specialization,it would lead to a better professional communication among the experts and develop a cooperative work environment.This is a crucial precondition for developing and maintaining a smooth and effective work coordination and flow within the respective employees in any business organisation.

6 0
3 years ago
Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the futu
jeka57 [31]

Answer: A. The fastest-growing share of the workforce is at least 55 years old.

Explanation:

The options to the question are:

A. The fastest-growing share of the workforce is at least 55 years old.

B. The fastest-growing age group is workers 16-25, who are prone to having accidents.

C. The largest proportion of the labor force is expected to be in the 16- to 25-year age group.

D. The total cost of labor in the United States will decrease considerably in the near future.

E. The labor force is expected to grow at a greater rate by 2026 than at any other time in U.S. history.

From the question, we are informed that Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future while Owen argues that organizations will not have to increase their spending on employee health care benefits.

The statement that weakens Owen's argument is that the fastest-growing share of the workforce is at least 55 years old. This simply means there are more old people incthe the workforce and that means there'll be more tendency for them to go to hospitals when ill compared to youths who'll be stronger.

5 0
3 years ago
When they produce 20,000 units per month, Sanders Incorporated has variable costs of $392,000 and fixed costs of $242,000. If Sa
Lady_Fox [76]

Answer:

increased in budget = $98000

correct option is A $98000

Explanation:

given data

produce = 20,000 units per month

variable costs = $392,000

fixed costs = $242,000

increases production = 25,000 units

to find out

how much will they have to increase their budget

solution

we get here total cost or present budget that is

total cost = variable cost + fixed cost

total cost = $392000 + $242000

total cost = $634000

and

variable cost per unit will be here

variable cost per unit = \frac{variable\ costs}{produce}

variable cost per unit = \frac{392000}{20000}

variable cost per unit = 19.6

and

variable cost for increased production = increases production × variable cost per unit  

variable cost for increased production = 25000 × 19.6

variable cost for increased production = 490000

and

total cost of increased production = fixed cost + variable cost for increased production

total cost of increased production = $242000 + $490000

total cost of increased production = $732000

and

increased in budget = $732000 - $634000

increased in budget = $98000

correct option is A $98000

6 0
3 years ago
eall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard mach
Paladinen [302]

Answer:

$6,000 unfavorable

Explanation:

The fixed manufacturing overhead budget for the month is the difference between budgeted fixed manufacturing overhead cost minus actual fixed manufacturing overhead cost represented below;

Fixed manufacturing overhead budget = Budgeted fixed manufacturing overhead cost - Actual fixed manufacturing overhead cost

= $70,000 - $76,000

= $6,000 unfavorable

It is unfavorable since the actual overhead cost expended is more than the budgeted cost.

4 0
3 years ago
What is the unemployment rate if the GDP gap is 13.5%?
goldenfox [79]
The answer is: 6.25%
3 0
3 years ago
Other questions:
  • Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Combs uses 500 grams of plastic and one-
    6·1 answer
  • Let’s suppose that a bank has $600 million in total deposits. This bank is subject to a 20% required reserve ratio and has $100
    8·1 answer
  • A _____ economy is based on personal choice.
    11·1 answer
  • You are considering a 10-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require a
    13·1 answer
  • You decide to quit your $60,000-per-year job as an information technology specialist and illustrate children's books. At the end
    13·1 answer
  • What is an Exclusive Contract with a Real Estate Agent?
    10·1 answer
  • Jan is an average salesperson. She tends to make her sales quota four out of every five months. Last month she closed the larges
    8·1 answer
  • Which of the following is not typically considered a function of financial intermediaries?
    15·1 answer
  • The study of behavior in situations of interdependence is known as
    9·1 answer
  • What website can i buy custom nikes on​
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!