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Dafna1 [17]
4 years ago
13

Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 4

5,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The dollar amount of desired profit from the production and sale of the company's product is a. $225,000 b. $220,500 c. $105,840 d. $96,000
Business
2 answers:
boyakko [2]4 years ago
6 0

Answer:

d. 96,000

Explanation:

Provided required rate of return on investments of $800,000 = 12%

Now desired profit = $800,000 X 12% = $96,000

therefore when fixing the price per unit this profit shall be added, and then reverse calculation is done.

With this we can get the desired profit.

At the last the total of cost and profit shall be divided by number of units to get the selling price per unit.

Therefore desired profit in dollars = $96,000

RoseWind [281]4 years ago
5 0

Answer:

The dollar amount of desired profit from production and sale of the company's product is D) $96,000.

Explanation:

CALCULATING THE TOTAL COST -    

The first step is to calculate the cost of production per unit of product =

Direct material cost + Direct labor cost + Variable factory overhead + Fixed factory overhead cost / Fixed selling and administrative costs

= $5.5 + $7.65 + $2.25 + $82,000 / $45,000

= $16.3 + $1.82

= $17.22

TOTAL COST = $16.3 X $45,000 + $82,000 + $45,000

                       = $860,500

Here we have taken $16.3 because we are taking fixed factory overhead and fixed selling and administrative cost separately.

TOTAL REVENUE = $860,500 + $96,000 ( $800,000 X 12% )

                              = $ 956,500

PROFIT = REVENUE - COST

             = $956,500 - $860,500

             = $96,000

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Stu purchased six put options on XY stock with a strike price of $45 and an option price of $2.60 per share. The option expires
marta [7]

Answer:

$100

Explanation:

A put option gives you the right to sell a stock at a specific strike price. In this case, the strike price is $45 per share and the market price of each share is $41.40.

The profit made with this investment = [($45 - $41.40) - $2.60] x 100* = $ x 100 = $100.

*Each option consists of 100 shares.

3 0
4 years ago
Soft skills are ________; they are more or less relevant in every job, at every level, and throughout your career.
Georgia [21]

Soft skills are portable because they are somewhat applicable in every position, at every level, and over the course of your career.

What do soft talents entail?

People require soft skills, or interpersonal abilities, in order to succeed at work. This could entail the capacity to multitask, manage time effectively, and work well in teams. Soft skills are essential for success in any job, but they are crucial in social work in particular.

Numerous stakeholders, each of whom may have diverse interests, are involved in a significant amount of the work that is done in the social sector. In situations like this, having the proper interpersonal skills is essential to coming to a successful conclusion.

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3 0
2 years ago
Beyer Company is considering the purchase of an asset for $185,000. It is expected to produce the following net cash flows. The
Y_Kistochka [10]

Answer:

a. $87,750.56

b. Accept the investment, because it gives a positive net present value.

Explanation:

the net present value is the today`s value of future cash flows. We determine the net present value by discounting the future cash flow using the required return or the cost of capital.

Using a Financial calculator this can be determined as :

- $185,000 CF0

$ 87,000    CF 1

$ 46,000    CF 2

$ 72,000    CF 3

$ 132,000   CF 4

$ 41,000     CF 5

i/yr = 12%

Then, SHIFT NPV gives $87,750.56

We accept an investment only and only if it has a positive net present value.

6 0
3 years ago
What is the goal of materials handling? a. Minimize length of time product is held in storage b. Minimize time spent sorting del
artcher [175]

Answer:

d. Minimize the number of times a product is handled

Explanation:

Material handling is the process by which products are passed from different stages of production and delivery before getting to the consumer.

Since material handling is an essential activity in production businesses plan to reduce cost on this activity.

The best way to reduce handling cost is to reduce the number of time a product needs to be handled.

That is reducing to the barest minimum the touch points in process like sorting, moving, preparing, and storing products

3 0
3 years ago
Norma is organizing an event for her company. She has to create billboards that will be placed at different units of the firm. S
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