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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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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units
viva [34]

Answer:

WA      1,682

LIFO      910

FIFO  2,260

Explanation:

\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

<u>Then, we calculate for each method:</u>

Weighted average:

cost of goods / available units = 10,190 / 970 =  10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 =  1,350

70 x 13 =     910

Total       2,260

5 0
4 years ago
The measure that captures the use of a fixed asset in serving customers relative to the asset's capacity is known as the _______
Gelneren [198K]

Answer:

Utilization.

Explanation:

The measure that captures the use of a fixed asset in serving customers relative to the asset's capacity is known as the utilization rate.

This ultimately implies that, a utilization rate measures or estimates the level of output a fixed asset produces relative or in comparison with it's capacity.

Generally, the utilization rate is usually measured in proportions and displayed in percentages so as to gather information about organizational cost structure and operational efficiency.

6 0
3 years ago
Taylor takes her employees' opinions into consideration via reasoning and discussion when making departmental decisions. Which o
qwelly [4]

Answer:

A. Flexible

Explanation:

Taylor takes her employees' opinions into consideration via reasoning and discussion when making departmental decisions. She is very much flexible  with her role models. She listens to her employees, takes advises from them and then accordingly make divisions. She is the best example of a leader who learn from others and make plans with the help of others in the changing situations. An effective leader and manager should be flexible in order to make their employees and followers comfortable with them. In this way, they can share and coordinate quite effectively.  

6 0
3 years ago
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintena
seropon [69]

Answer:

Cutting = $62,020

Pruning = $16,280

Explanation:

<em>The direct method does not consider the impact of reciprocal servicing arrangement when allocating the overhead  of service centers and only allocates overhead to the production cost centers only.</em>

Allocation of Overhead

Janitorial overhead

Cutting = 6/(6+54)×   $5,000 = $500

Pruning =54/(6+54) ×  $5,000= $4,500

Maintenance overhead

Cutting = 9/(9+1)×   $7,800 = $7020

Pruning =1/(9+1) ×  $7,800= $780

Total cost of production department

Cutting = 54,500 + 500 + 7020= 62,020

Pruning department = 11,000 + 4,500 + 780 = 16,280

Cutting = $62,020

Pruning = $16,280

7 0
3 years ago
Is there a savings account you can't touch
astra-53 [7]
Yes, there are many savings accounts you can't touch for a period of time
5 0
4 years ago
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