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3 years ago

Sierra Company incurs the following costs to produce and sell a single product.

Business

1 answer:

Simora [160]3 years ago

5 0

Answer:

a) $72,000

b) $90,000

c) $90,000

Explanation:

As per the data given in the question,

a) By using variable costing We can calculate the Total cost of finished goods inventory as follows:

= 3,000 units ×($9+$10+$5)

= $72,000

b) By using absorption costing the total cost of finished goods inventory can be calculated as follows:

= 3,000 units ×[ ($9+$10+$5)+($150,000÷25,000)]

= $90,000

c) 3,000 units should be carried in the inventory for external purposes at

= $90,000

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In mixed economies, governments also tend to take into state ownership troubled firms whose continued operation is thought to be

Archy [21]

This is true. If a firm is considered to be of national interest (i.e. defense or national security), in a mixed economy, the government can take control of the failing business.

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3 years ago

g Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an orde

Karolina [17]

Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the stores leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Columbian mild coffee beans, which are purchased from a distributor from New York City. Because Romans purchases large quantities the coffee beans may be purchased om an as need basis for the price of 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Columbian Mild The composition of each coffee blend are as follows:

Bean Regular DeCaf Blend

Brazilian Natural 75% 40%

Columbian Mild 25% 60%

Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the production of 1000 pounds of Romans Regular coffee and 500 pounds of Romans DeCaf coffee. The production cost is $0.80 per pound for the Regular blend. Because of the extra steps required to produce DeCaf, the production cost for the DeCaf blend is $1.05 per pound. Packaging costs for both products are $0.25 per pound. Formulate a linear programming model that can be used to determine the pounds of Brazilian Natural and Colombian Mild that will maximize the total contribution to profit.

Answer:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

Explanation:

From the given information:

The total revenue can be illustrated as :

Total revenue = 3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD

On the other hand; the total cost of the beans is:

= 1.1 (0.47 BR + 0.47 BD + 0.62 CR + 0.62 CD)

= 0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD

Also; The total production cost is :

= 0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD

The total profit = Total revenue - Total Cost of Beans - Total Production Cost

The total profit = $\left[\begin{array}{}3.6 BR + 4.4 BD + 3.6 CR + 4.4 CD\\- (0.517 BR + 0.517 BD + 0.682 CR + 0.682 CD)\\-(0.8 BR + 1.05 BD + 0.8 CR + 1.05 CD)\end{array}\right]$

The total profit = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD

Therefore the linear programming model represents the Objective function of the total profit as:

$\mathbf{Max \ Z = 2.033 BR + 2.583 BD + 1.868 CR + 2.418 CD}$

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3 years ago

Which advertising career interest you the most?

Montano1993 [528]

Answer:

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Explanation:

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3 years ago

You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all

Aleks [24]

Answer:

C. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.

Explanation:

if stock prices move together, (positive correlation), the volatility of the portfolio will be higher. Higher volatility means higher risk. This is the case with the first economy.

In the second economy however, the stocks are independent of each other meaning there is zero correlation between stocks and hence the portfolio volatility will be much lesser.

As a risk-averse investor you will prefer the portfolio with lower volatility for the same expected return.

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3 years ago

Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 15,700

Andru [333]

Answer:

A) Price 7,080 U

B) Quantity 4,630.5 U

C) Total 11.710,5‬ U

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $3.45

actual cost $3.65

quantity 35,400

difference $(0.20)

$(0.2) \times 35,400 = DM \: price \: variance$

price variance $(7,080.00)

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 36110.00

actual quantity 35400.00

std cost $3.45

difference 710.00

$(710) \times 3.45 = DM \: quantity \: variance$

quantity variance $2,449.50

Total Variance: 2,449.5 - 7,080 = -4.630,5‬

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4 years ago