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Alina [70]
3 years ago
13

Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of

$280. The company has fixed costs of $125/unit at the current production volume (assume unit production volume equals unit sales volume). What is the contribution margin ratio for Incline's product?
Business
1 answer:
Hatshy [7]3 years ago
6 0

Answer:

23%

Explanation:

The computation of the contribution margin ratio is shown below:-

Selling price per unit = $4,900,000 ÷ 4,025 units

= 1217.39

Contribution margin ratio = Contribution margin ÷ Selling price

= $280 ÷ 1217.39

= 23%

Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

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Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at
Katena32 [7]

Answer:

b. 1,2,3,4

Explanation:

Lets first understand what relevant cost is? Relevant cost is any cost that influences the decision of a decision maker. Therefore, the first four items are relevant in the decision of whether to sell the X-547 or to further process it.

Explanation for each item is as follows:

1- Selling price of X-547:

The selling price is relevant because it will help to determine the revenue generated from selling X-547 at the split off point and which could also be used for comparative purposes, if suppose the decision of further processing is chosen.

2- Variable cost of processing X-547 into Xylene:

The variable cost of processing X-547 is indeed relevant too, because at this stage management is not in a position to take a decision until they explore the possibilities coming out of processing X-547, therefore, in order to come to a decision making position the management will need to know the variable cost of processing X-547, making it relevant in the decision.

3- The avoidable fixed costs of processing X-547 into Xylene:

There is sometimes a fear (i.e fear of increase in step-fixed costs as a result of processing a product or fear of loss of control over costs) felt by the management when trying to process certain products for further development therefore those fixed costs which can be avoided during processing X-547 can also influence (i.e encourage) the decision of further processing X-547, making it relevant.

4- The selling price of Xylene:

The last but not the least, the selling price of Xylene. If the management finds that if X-547 is further processed into Xylene and it sells at a highly favorable/lucrative price, creating a huge margin for them then definitely they would be encouraged to taking the decision of further processing it.

5 0
3 years ago
Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 30 chicken breasts per hour, while Tom
vodka [1.7K]

Answer:

Their average hourly productivity as a team for chicken breasts will be

45.

Explanation:

Here, it is given that Mike and Tom debone chicken breasts for Ted' chicken company.

Mike debones 30 chicken breasts,

Meanwhile Tom is having his own experience in this work and knows how to calculate the hourly work

So, Tom allows Mike to debone only 60 chicken breasts per hour.

Now its mentioned that both Tom and Mike had worked 40hrs per week.

So, their average hourly productivity as a team will be:

                 frac\ {{30} +{60}} {2}

                    ⇒ 45

So, their average hourly productivity as a team for chicken breasts will be 45.

7 0
3 years ago
FDIC is:
seropon [69]

Answer:

c) A government insurance program that will pay back account holders if the bank or lending institution fails

Explanation:

The FDIC is an acronym for Federal Deposit Insurance Corporation. It was founded by Franklin Roosevelt on the 16th of June, 1933.

FDIC is a government insurance program that will pay back account holders if the bank or lending institution fails.

The income generated from the premium payments of insured banks is used to fund or finance the FDIC.

5 0
3 years ago
Read 2 more answers
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a sche
ahrayia [7]

Answer and Explanation:

a. The required balance of allowance for doubtful debts is shown below:

Particulars       Account receivable  %             Estimated uncollectible

Not yet due    $860,000                1.20%        $10,320

1 to 30 days    $344,000                1.95%        $6,708

31 to 60 days  $68,800                  6.45%       $4,438

61 to 90 days  $34,400                  32.50%    $11,180

Over 90 days $13,760                    67.00%    $9,219

Estimated balance                                           $41,865

b. The adjusting entry is

Bad debt expense Dr ($41,865 - $14,000) $27,865

         To Allowance for doubtful debts $27,865

(being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets

8 0
3 years ago
In 2013, there are four open flute positions in major orchestras. A total of 525 professional flutists audition. In the same yea
love history [14]
The best and most correct answer among the choices provided by your question is the second choice.

The differences of their salaries is that t<span>he bassoonists earn a higher salary than the flutists.</span>

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!
3 0
3 years ago
Read 2 more answers
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