Solution:
Pick some smart number for x,
let x=2 (I chose x=2 as in this case monthly shipments would be X/2=1).
From January to April, inclusive 4x=8 brooms were produced and
in May the company paid for storage of 8-1 =7 brooms,
in next month for storage of 6 and so on.
So the total storage cost would be:
= 1 ∗ (7+6+5+4+3+2+1+0)
= 28
--> as x=2 , then 28 = 14x
So the answer is 14x
Answer and Explanation:
The computation of the equivalent units of production for both material and the conversion cost is shown below:
Particulars Materials Conversion costs
Unit transferred out 9,700 9,700
Add:
Ending work in process 8,300 3,818
(8300 × 100%) (8,300 × 46%)
Total equivalent unit 18,000 13,518
B. owner contributions; retained earnings
Answer:
ask the manager about the marginal cost.
Explanation:
When a business wants to maximise profit it chooses the level of production that gives maximum revenue at lowest cost. Since the average cost is rising, the manager should ask for the marginal cost of production.
Marginal cost is the extra cost incurred for producing an extra unit of a product.
To maximise profit the manager needs to get a production level at which marginal cost is lowest at highest revenue.
