Answer:
The break-even point in sales dollars is: C. $32,000
Explanation:
During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed cost.
Contribution margin ratio = (Sales - Total Variable cost)/Sales = ($220,000 - $55,000)/$220,000 = 0.75
The break-even point sales dollars is calculated by using following formula:
Break-even point in sales dollars = Fixed cost/Contribution margin ratio = $24,000/0.75 = $32,000
Answer:
<u>Licensing </u> is the correct answer.
Explanation:
Licensing is defined as a trade agreement between a company that gives another company authorization to manufacture its product by contract and payment of royalties for the use of the right to use the trademark.
Companies generally license: design, patents, trademarks, copyrights and others whose purpose is to assist in increasing profitability and expanding business.
Despite being a very profitable strategy worldwide, product licensing is not crucial to a company's success, despite the ease of marketing a product or brand already consolidated and valued by the consumer, it is necessary to ensure compliance in production processes. and focus on marketing and sales.
Answer:
Effect on income= $68,580 increase
Explanation:
<u>Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.</u>
<u>First, we need to calculate the unitary cost:</u>
Unitary cost= 46.1 + 8.8 + 1.8 + 1.3
Unitary cost= $58
<u>Now, the effect on the income of accepting the offer:</u>
Effect on income= 2,700*(83.4 - 58)
Effect on income= $68,580 increase
The Consumer Electronics Division of General Electronics Company, which has a number of dozen factories all over the world, is run by production managers Gary Stevens and Mary James. Gary is in charge of the facility in EI Segundo, California, while Mary is in charge of the one in Des Moines, Iowa. If the entire division reaches or surpasses its yearly profit objective, production managers will get a bonus equivalent to 5% of their basic pay. The bonus is decided in March, following the completion and distribution to investors of the company's annual report.
Percentage Completion
The percentage of completion method involves the ongoing recognition of revenue and income related to longer-term projects. By doing so, the seller can recognize some gain or loss related to a project in every accounting period in which the project continues to be active.
PER UNIT COST 187.50
FINAL PROCESS COMPLETION PERCENTAGE 40%
FINAL PROCESS COMPLETION 204,000
COGS 289
TOTAL COGS 57,899,510
NET PROFIT 100,490
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Discrimination would be the correct answer for this question.
