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Ann [662]
3 years ago
7

The following are the unit costs of making and selling an item at a volume of 30,000 units per month, which represents the compa

ny's capacity: Manufacturing: Direct materials $ 5.90 Direct labor 11.90 Variable overhead 1.90 Fixed overhead 3.90 Selling and administrative: Variable 7.90 Fixed 9.90 Assume the company has 300 units left over from last year which have small defects and which will have to be sold at a reduced price as scrap. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. The cost that is relevant as a guide for setting a minimum price on these defective units is: (Round your answer to two decimal places.) Multiple Choice $35.60 per unit. $7.90 per unit. $17.80 per unit. $31.50 per unit.
Business
1 answer:
nadezda [96]3 years ago
5 0

Answer:

$7.90 per unit

Explanation:

The computation of the   minimum price on these defective units is shown below:

It is equivalent to the selling & admin variable cost per unit i.e. $7.90 per unit

oAs all the other cost would be considered as a sunk cost because the product is already generated and the fixed cost is not considered as it would remain the same whether the production is increase or not

Therefore the second option is correct

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3 years ago
in 2006, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $28,000. What wa
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The  rate of increase for these automobiles between the two time periods is <span>75 percent.

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5 0
3 years ago
The following information is available for Marin Inc. for three recent fiscal years. 2022 2021 2020 Inventory $565,000 $572,000
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Answer:

Inventory turnover for 2022 =  1.25

Inventory turnover for 2021 =  1.3

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 0.35 * 100= 35%

Explanation:

                      2022        2021     2020  

Inventory $565,000 $572,000 $320,000  

Net sales 1,895,000 1,784,000 1,360,000  

Cost of goods sold 1,421,250 1,159,600 930,000

Inventory turnover= Cost Of Goods Sold/ Average Inventory

Inventory turnover for 2022 =  1,421,250/ $565,000 + $572,000

Inventory turnover for 2022 =  1,421,250/ 1137,000

Inventory turnover for 2022 =  1.25

Inventory turnover for 2021 =  1,159,600/$572,000 + $320,000  

Inventory turnover for 2021 =  1,159,600/892,000

Inventory turnover for 2021 =  1.3

Days Sales in Inventory for 2022 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2022 =($565,000/1,421,250)*365

Days Sales in Inventory for 2022 =(0.3975)*365

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2021 =$572,000 / 1,159,600 * 365

Days Sales in Inventory for 2021= 0.4933*365

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate= Gross Profit/ Sales * 100

Gross Profit Rate= Sales - Cost Of Goods Sold / Sales * 100

Gross Profit Rate for 2022= 1,895,000-1,421,250/1,895,000* 100

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 1,784,000 -1,159,600/ 1,784,000 * 100

Gross Profit Rate for 2021= 624,400/1,784,000 * 100

Gross Profit Rate for 2021= 0.35 * 100= 35%

6 0
3 years ago
What is generally the difference between blue-collar workers and white-collar workers?
gayaneshka [121]
White-collar<span> work is performed in an office, cubicle, or other administrative setting.  </span>blue-collar workers<span>, whose job requires manual labors </span>
7 0
2 years ago
On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc
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Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

b) The $97,000 is the actual cash inflow received from customers during Year 2.  It increases the cash inflows and forms part of the operating activities section of the Statement of Cash Flows for Year 2 under the direct method.

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