Which of the following is NOT a useful strategy when making an informed purchase?

Lakeside Inc. produces a product that currently sells for $57.60 per unit. Current production costs per unit include direct mate

Sidana [21]

Answer:

It is convenient to make the changes.

Explanation:

Giving the following information:

Selling price= $57.60 per unit.

Direct materials= $22

Direct labor= $24

Variable overhead= $11.00

Fixed overhead= $11.00.

New costs:

Direct material cost= 22*1.2= $26.4

Direct labor cost= 24*1.2= $28.8

<u>I suppose that the selling price will increase by $40.</u>

To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:

Contribution margin= selling price - unitary variable cost

Actual Contribution margin:

Contribution margin= 57.6 - (22 - 24 - 11)= 0.6

New contribution margin:

Contribution margin= 97.60 - (26.4 - 28.8 - 11)= $31.4

5 0

2 years ago

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on Decembe

qaws [65]

Answer:

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

1.

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

2.

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

3.

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

8 0

3 years ago

Goods that are created and used domestically are __________.

dem82 [27]

The answer is C. Produced and consumed in one country.
Goods that are created and used domestically are not imported goods because imported goods means coming from other country, it's not also exported goods since it is not exported to other county. Rather it is being produced and used of the same country.

7 0

2 years ago

Read 2 more answers

What does Accenture help businesses implement to ensure their data is trustworthy and reliable? data citizenship and literacy pr

FinnZ [79.3K]

Answer:

data governance and management policies.

Explanation:

A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.

Basically, a data database system typically contains the records about all the data elements (objects) such as data relationships with other elements, ownership, type, size, primary keys etc. These records are stored and communicated to other data when required or needed.

One of the world's largest management and technological consulting company that provide services such as database management, consulting, strategy and outsourcing is Accenture.

Accenture help businesses implement data governance and management policies in order to ensure their data is trustworthy and reliable.

7 0

2 years ago

During 20X0, Pard Corp. sold goods to its 80%-owned subsidiary, Seed Corp. At December 31, 20X0, one-half of these good were inc

wolverine [178]

Answer:

The amount to be repot is $1,450,000

Explanation:

in this question, we are asked to calculate the amount of selling expenses to be recorded in the company’s consolidated income statement for that year.

To answer this question, we employ a mathematical approach;

Mathematically;

Selling expenses = Total expenses - Contra Expenses

from the question, we identify that total expenses is (1,100,000 + 400,000) = $1,500,000

Contra expenses = $50,000

The selling expenses is thus; 1,500,000 - 50,000 = $1,450,000

4 0

3 years ago