Answer:
- total product costs incurred to make 27,500 units = $25.10 x 27,500 = $690,250
- total period costs incurred to make 27,500 units = $15.10 x 27,500 = $415,250
- total product costs incurred to make 31,000 units = $25.10 x 31,000 = $778,100
- total period costs incurred to make 24,000 units = $15.10 x 24,000 = $362,400
Explanation:
Average Cost per Unit
- Direct materials $8.90
- Direct labor $5.90
- Variable manufacturing overhead $3.40
- Fixed manufacturing overhead $6.90
- Fixed selling expense $5.40
- Fixed administrative expense $4.40
- Sales commissions $2.90
- Variable administrative expense $2.40
Product costs include direct labor, direct materials, production supplies, and factory overhead. Product costs per unit = $8.90 + $5.90 + $3.40 + $6.90 = $25.10
Period costs include selling and administrative expenses. Period costs per unit = $5.40 + $4.40 + $2.90 + $2.40 = $15.10
<span>Supply-side economics is the economic theory that Ronald Reagan base his policies upon after becoming President in 1980.Supply side economics theory is about being focus on the capital or supply in order to grow the economy. It is also called as macroeconomics theory.</span>
Answer:
B, penetration pricing
Explanation:
Penetration pricing is a pricing strategy in which a manufacturer sets the price of its product low for a start so as to have a wide reach and acceptability in the market.
This pricing strategy is meant to make customers ditch their usual product for the new product, thereby having the new product attracting customers to itself.
Ultimately, penetration pricing increases market share of the new product manufacturer as it gains a lot of customers within the shortest possible time.
Penetration helps to discourage new product entrance into the market thus giving the product a large/high stock turnover throughout the product's distribution channel.
In the above question, Frito lay introduced its chips at a low price of 69cents for a period of time (first few months, say 3 or 4 months for example) in order to gain market share quickly.
Cheers
Answer:
a. $392, 265
Explanation:
Given that:
i. Purchasing department, overhead allocation rate is $77 per purchase order.
ii. Assembly department, overhead allocation rate is $5 per part.
iii. Packaging department, overhead allocation rate is $4 per unit.
iv. Direct material cost is $70 per unit.
v. Each stereo has 50 parts.
Total parts required = 1200 x 50
= 60000
vi. 45 purchase order was required for 1200 stereos.
Thus:
i. $77 x 45 = $3465
ii. $5 x 60000 = $300000
iii. $4 x 1200 = $4800
iv. $70 x 1200 = $84000
Therefore,
total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000
= $392, 265
Answer:
D. Call an all staff meeting and give everyone the news at once.
Explanation:
Instead of letting the rumors spread throughout the company, what Ben is supposed to do is have a meeting with his entire staff and let all of them know at once what's going on. This way, he will be clear and direct and won't allow for gossip to spread throughout his company and he himself will address the issue head-on. This way he won't leave room for misinterpretation as he will explain what is going to happen.
