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3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Business

1 answer:

Paladinen [302]3 years ago

5 0

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

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Lucy Sportswear manufactures a line of specialty T-shirts using a job order costing system. In March the company incurred the fo

wlad13 [49]

Answer:

Unitary cost of goods sold= $5.95

Explanation:

Giving the following information:

direct materials= $13,200

direct labor= $4,900

Job ICU2 required 800 machine hours.

Factory overhead was applied to the job at a rate of $25 per machine hour.

The cost of goods sold is calculated using the direct material, direct labor, and applied factory overhead.

First, we need to calculate the allocated overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 25*800= 20,000

Now, we need to calculate the cost of goods sold per unit:

Total cost= 13,200 + 4,900+ 20,000= 38,100

Unitary cost= 38,100/6,400= $5.95

Unitary cost of goods sold= $5.95

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3 years ago

Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson

hram777 [196]

Answer:

a. What increase in the selling price is necessary to cover the 15 percent increase in direct labor cost and still maintain the current contribution margin ratio of 40 percent?

estimated production costs per unit:

direct materials $10

direct labor $23

overhead $30

total $63

if we want contribution margin to remain at 40%, then selling price = $63 / (1 - 40%) = $105

to verify our answer, contribution margin = $105 - $63 = $42 / $105 = 40%

b. How many units must be sold to maintain the current operating income of $350,000 if the sales price remains at $100 and the 15 percent wage increase goes into effect?

if sales price doesn't change, then contribution margin = $37 (not $40)

units sold to keep profit at $350,000 = ($350,000 + $390,000) / $37 = 20,000 units per year

c. Wilson believes that an additional $700,000 of machinery (to be depreciated at 20 percent annually) will increase present capacity (20,000 units) by 25 percent. If all units produced can be sold at the present price of $100 per unit and the wage increase goes into effect, how would the estimated operating income before capacity is increased compare with the estimated operating income after capacity is increased? Prepare schedules of estimated operating income at full capacity before and after the expansion.

working at full capacity, sales price $100 (unchanged) and direct labor costs increasing by 15%

capacity 20,000 capacity 25,000

sales revenue $2,000,000 $2,500,000

direct labor $460,000 $575,000

direct materials $200,000 $250,000

overhead $600,000 $750,000

fixed costs $390,000 $670,000

operating revenue $350,000 $255,000

The expansion will result in lower operating profits ($95,000 less) so it should be discarded.

7 0

4 years ago

The College Board reported the following mean scores for the three parts of the Scholastic Aptitude Test (SAT) (The World Almana

storchak [24]

Answer:

a) $P(492$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 0.949)= P(Z$

b) $P(505$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 1.898)= P(Z$

c) $P(484$

And we can use excel or the normal standard table to find this probability:

$P(-1 < Z< 1)= P(Z$

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".

Part a

Let X the random variable that represent the scores for critical reading of a population, and for this case we know the distribution for X is given by:

$X \sim N(502,100)$

Where $\mu=502$ and $\sigma=100$

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)$

And for this case we want this probability:

$P(502-10 < \bar X < 502+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(492$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 0.949)= P(Z$

Part b

Let X the random variable that represent the scores for Math of a population, and for this case we know the distribution for X is given by:

$X \sim N(515,100)$

Where $\mu=515$ and $\sigma=100$

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)$

And for this case we want this probability:

$P(515-10 < \bar X < 515+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(505$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 1.898)= P(Z$

Part c

Let X the random variable that represent the scores for Writing of a population, and for this case we know the distribution for X is given by:

$X \sim N(494,100)$

Where $\mu=494$ and $\sigma=100$

We select a sample of size n=100, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{100}}=10)$

And for this case we want this probability:

$P(494-10 < \bar X < 494+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(484$

And we can use excel or the normal standard table to find this probability:

$P(-1 < Z< 1)= P(Z$

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3 years ago

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Diano4ka-milaya [45]

WHATS THE REST OF THE QUESTION ?

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