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3 years ago

Kulvekowski Company has budgeted sales of $30,000 with the following budgeted costs:

Business

1 answer:

anyanavicka [17]3 years ago

7 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $30,000

Direct materials = $6,300

Direct labor = $4,100

Variable factory overhead = $3,700

Fixed factory overhead = $5,600

Variable selling and administrative costs = $2,400

Fixed selling and administrative costs = $3,200

Total variable cost:

= Direct Material + Direct labor + Variable factory overhead + Variable selling and administrative costs

= $6,300 + $4,100 + $3,700 + $2,400

= $16,500

Total fixed cost:

= Fixed factory overhead + Fixed selling and administrative costs

= $5,600 + $3,200

= $8,800

Total cost = Fixed cost + Variable cost

= $8,800 + $16,500

= $25,300

Profit = Sales - Total cost

= $30,000 - $25,300

= $4,700

Mark Up as percentage of cost:

= (Profit ÷ cost) × 100

= ($4,700 ÷ $25,300) × 100

= 18.6%

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Mariposa Inc is considering improving its production process by acquiring a new machine. There are two machines management is an

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Answer:

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Explanation:

To determine the better of the two options, we would compare the equivalent annual cost of each options using a discount rate of 14% per annum

Equivalent annual cost = Total PV of cost /Annuity factor

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Machine B should be purchased because it has a lower equivalent annual cost

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3 years ago

Kulvekowski Company has budgeted sales of​ $30,000 with the following budgeted​ costs:

Kulvekowski Company has budgeted sales of $30,000 with the following budgeted costs: