Answer:
C) $21,080
Explanation:
The computation of the net operating income is given below:
Particulars Per unit Total
Sales $114 $1,128,600
Less: Variable expenses:
Raw material cost (6 pounds for $4) $24 $237,600
Direct labor cost (2.4 hours for $24) $58 $570,240
Manufacturing overheads (2.4 hours for $9) $22 $213,840
Variable selling and admin expenses $2 $15,840
Contribution margin $9 $91,080
Less: Fixed Selling and admin exp $70,000
Net operating income $21,080
Answer:
It depends upon the contribution per unit of each product or in other words it depends on composite contribution per unit.
Explanation:
The composition matters a lot because of the fact that every product has its own contribution per unit. So if the product chrome has $1 contribution per unit and standard scooter has $2 contribution per unit. Also suppose that $6 is the total fixed cost. Then the priority to sell must be standard scooter, because it has higher contribution. Secondly if we only sell chrome scooters then total 6 ($6 fixed cost - 6 units * $1 contribution per unit) units must be sold and if we only sell standard scooters then only 3 ($6 fixed cost - 3 units * $2 contribution per unit) units must be sold to breakeven. Suppose, if we reduce standard scooters from 3 scooters to 2 units ($6 fixed cost - 2 units * $2 contribution per unit) then their will be loss of $2 which can be reduced to zero by selling 2 chrome scooters ($2 loss - 2 units * $1 contribution per unit).
So this is how contribution per unit affects the composite breakeven units and most important thing is that if the composite contribution per unit has increased then the breakeven units will decrease and vice versa.
Answer:
March 1 Issue common stock for $21,000.
- Dr Cash 21,000
- Cr Common stock 21,000
March 5 Obtain $9,000 loan from the bank by signing a note.
- Dr Cash 9,000
- Cr Notes payable 9,000
March 10 Purchase construction equipment for $25,000 cash.
- Dr Equipment 25,000
- Cr Cash 25,000
March 15 Purchase advertising for the current month for $1,100 cash.
- Dr Advertising expense 1,100
- Cr Cash 1,100
March 22 Provide construction services for $18,000 on account.
- Dr Accounts receivable 18,000
- Cr Service revenue 18,000
March 27 Receive $13,000 cash on account from March 22 services.
- Dr Cash 13,000
- Cr Accounts receivable 13,000
March 28 Pay salaries for the current month of $6,000.
- Dr Salaries expense 6,000
- Cr Cash 6,000
Answer:
China exports a lot of cars, but the reason it is a major part of the auto industry is because it exports a lot of parts.
Explanation:
This one
Answer:
Change in Investment (Government Spending) = $200
Explanation:
Multiplier = k =∆Y/∆I = 1/(1-MPC)
Needed ∆Y = $1000 ; MPC = 0.8
1000/ ∆I = 1 / (1-0.8)
1000/∆I = 1 / 0.2
1000/∆I = 5
∆I = 1000/5
∆I = 200