Answer
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
Answer:
Higher price than competitor with lower quality
Explanation:
Higher priced goods with lower or same quality than competitor is not a customer benefit because the customer can get it cheaper from the businesses competitor
Answer:
24 million shares ; $16 million
Explanation:
The computation of the weightage number of treasury shares are shown below:
Number of shares Price Total
2 $22 $44 million
1 $28 $28 million
Total 3 $72 million
So, the weighted average number of shares would be
= $72 ÷ 3 = 24 million shares
Now the journal entry would be
Cash A/c Dr $64 million (2 million treasury shares × $32)
To Paid in capital - share repurchase A/c $16 million
To Treasury stock $48 million (24 million treasury shares × $2)
(Being the treasury shares are sold)
Answer:
Results are below.
Explanation:
Giving the following information:
Variable manufacturing cost $195
Applied fixed manufacturing cost 105
Variable selling and administrative cost 75
Allocated fixed selling and administrative cost 90
<u>1)</u>
Unitary variable cost= $195
Selling price= 195*2.1
Selling price= $409.5
<u>2)</u>
Total variable cost= 195 + 75= $270
Selling price= 270*1.65
Selling price= $445.5
<u>3)</u>
<u>The absorption costing method includes all costs related to production, both fixed and variable.</u> The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Total absorption cost= 195 + 105= $300
Selling price= 300*1.2
Selling price= $360
