A surf board shop for example. If you lived in a place like Ohio you’re not gonna have very many sales because there’s no ocean or surf parks near by. But if you lived somewhere like California you’re sales would be much better.
Answer:
Cost per unit under variable costing $
Direct material 110
Direct labour 150
Variable manufacturing overhead <u> 75 </u>
Cost per unit <u>335 </u>
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Cost per unit under absorption costing $
Direct material 110
Direct labour 150
Variable manufacturing overhead 75
Fixed manufacturing overhead ($2,700,000/90,000) <u>30</u>
Cost per unit <u>365</u>
Explanation:
In variable costing, cost per unit is calculated by the addition of all variable costs while in absorption costing, fixed manufacturing overhead application rate is added to the variable costs in order to obtain the cost per unit.
Answer: 90%
Explanation:
Cycle Service Level refers to the expected probability by which a manufacturer meets the demand for a particular product and is not being stockout.
In this case,
40% of the days, 80 are sold;
50% of the days, 90 are sold
10% of the days; 100 are sold.
Since the vendor plans to stock 90 each day, then the vendor will meet demand during 40% of the days, when 80 are sold; and during 50% of the days, when 90 are sold.
Therefore, the expected CSL is the vendor targeting will be:
= 40% + 50%
= 90%
Answer:
Explanation:
First, find the YTM of the bond using the following inputs on a financial calculator;
N = 15*2 = 30 semiannual payments
PV= -925
Semiannual coupon payment; PMT = (8%/2)*1000 = 40
FV = 1,000
then CPT I/Y = 4.458%
Annual rate = 4.458% *2 = 8.92%
Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;
N = 10*2 = 20
Semiannual coupon payment; PMT = 40
FV = 1,000
Semiannual rate; I/Y = 4.458%
then CPT PV = 940.206
The price at year 5 will be $940.21
