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Answer:</h2><h2>The profit would increase by $ 4000 if complex product was produced.</h2>
Explanation:
Total number of units to be manufactured = 1000
(i) The cost price of 1 unit = $ 82
The cost price of 1000 units = 82 * 1000 = $ 82000
Selling price of 1 unit = $ 122
The selling price of 1000 units = 122 * 1000 = $ 122000
Profit earned = 122000 - 82000 = $ 40000
(ii)To produce a complex product,
The cost price of 1 unit = $ 82 + $ 36 = $ 118
The cost price of 1000 units = 118 * 1000 = $ 118000
Selling price of 1 unit = $ 162
The selling price of 1000 units = 162 * 1000 = $ 162000
Profiy earned = 162000 - 118000 = $ 44000
Therefore, the profit would increase by $ 4000 if complex product was produced.
Answer:
Expenses and glide path are just two factors that investors should consider
Explanation:
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Answer:
The unit costs are $ 4.87 for 70 % Conversion Costs
The unit costs are $ 5.54 for finished goods
Explanation:
Total Materials cost = $ 115,080
Material Costs for one unit= $ 115,080/ 34000= $ 3.3847= $ 3.39
Conversion Costs= $ 72,072
Conversion Costs for one unit = $ 72072/34000 * 70%= $ 1.4838= $ 1.48
Total Cost per unit= $ 3.39 + $ 1.48= $ 4.87
Process Cost summary
Quantity Schedule
Materials = ($3.39 *34,000)= $ 115,080
Cost Added by Department: Total Cost Unit Cost
Materials= $ 115,080 $ 3.39
Conversion Costs
Labor + Overheads ( 1.48 * 34,000)= $ 50,320 $ 1.48
Units still in process ($ 72072- $ 50320) = $ 19,752 $0.58
Total cost to be accounted for $ 187,152 $ 5.54
Answer:
$10
Explanation:
Steve achieved a producer surplus of $10, which is commensurate with the value of the 6-pack of beer he received from his neighbor. This means he practically sold the old surfboard for $10.
Answer:
$35,400
Explanation:
The computation of the increase in sales is shown below:
The Total sales value is
= Number of units sold × selling price per unit
= 2,950 units × $40 per unit
= $118,000
Now if the contribution margin increases by 30, so ultimately the sales is also increased by 30%
Therefore, the increase in sales is
= $118,000 × 30%
= $35,400
