Answer:
The Company will use the 64 unit cost for the make scenario
and use the 54 for the buy plus the fixed cost (6x 2000)
In the short term, when the fixed cost are unavoidable, the operating profit will increase to 6,000
in the long-term, the operating profit will increase to 18,000
Explanation:
Direct Materials 27
Direct Labor 16
Variable Overhead 14
Fixed Overhead 6
Total unit cost 63
Total Variable Cost 57
Offered Unit cost
108,000/2,000 = 54
Unit Cost $63.00 $54.00 $9.00
Total Cost $126,000.00 $108,000.00 $18,000.00
Unavoidable Fixed Cost $12,000.00 -$12,000.00
Total Cost $126,000.00 $120,000.00 $6,000.00
Answer:
Operating income variance= $10,000
The increase in advertising will have a positive effect on operating income.
Explanation:
Giving the following information:
Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7,100 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
Price= $150
Contribution margin= $90
Operating income variance= (contribution margin* units) - increase in costs
Operating income variance= (190*90)- 7100= $10,000
The increase in advertising will have a positive effect on operating income.
Answer: a portion that reduces the outstanding loan balance & a portion that reflects interest
When you are valuing a stock, proper research must be done on the company's anticipated future growth rate which must be most careful about when performing your calculations.
When the case of deciding on which valuation method is to be used for the first time to value stock as it is actually easy to get overwhelmed by various valuation techniques available for the investors. Fairly straightforward valuation techniques are also present, however, other techniques are more involved and complicated.
In general, there is actually no particular method that is best suited for every situation to make performed. Since each stock is different and each industrial sector or firm exhibits unique characteristics it may be required to process valuation methods which are in multiple cases.
Due to many factors to be considered while stock valuation, it must be done on basis of the complete anticipated future growth rate of the company. This should be done carefully based on proper research on the future growth of the particular company to perform calculations of stock valuation.
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Suppose the fed sells $50 million of government securities to the bank of America. complete the sentences. the fed's total assets increase by $50 million and its total liabilities do not change.
<h3>
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What are liabilities?</h3>
- A liability is defined in financial accounting as the future forfeitures of economic benefits that an entity must make to other entities as a result of previous transactions or other previous events, the resolution of which may result in the transfer or use of assets, the provision of services, or another future yielding of economic benefits.
- Financial accounting liabilities might be based on equitable duties or constructive obligations rather than having to be legally enforceable.
- A responsibility based on moral or ethical principles is referred to as an equitable obligation.
- Contrary to an obligation that is founded on a contract, a constructive duty is one that is suggested by a particular combination of circumstances.
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