1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Margaret [11]
3 years ago
11

During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wag

es. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What is the amount of gross margin for the first year?
Business
1 answer:
hjlf3 years ago
7 0

Answer:

GROSS MARGIN = 33.33%

Explanation:

PRODUCTION COST COMPONENTS

  • Direct materials 14,000  
  • Direct work 19,000  
  • Lease and utilities 17,000

TOTAL PRODUCTION COST = 50,000

TOTAL UNITS PRODUCED = 5,000

UNIT COST= (Total Production Cost / Total Units Produced) = 50,000 / 5,000 = 10  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 5,000 – 3,000 = 2,000

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,000 * 10 = 20,000

SALES REVENUE= (Sold Units * Sale Price) = (3,000 * 15) = 45,000

COST OF SOLD GOODS (a) = (Sold Units * Unit Cost) = 3,000 * 10 = 30,000

COST OF SOLD GOODS (b) = (Beginning Balance + Production cost – Final Balance) = 0 + 50,000 – 20,000 = 30,000

GROSS MARGIN = ((Sales Revenue – Cost of sold Goods) / Sales Revenues) * 100 = ((45,000 – 30,000) / 45,000) * 100 = 33.33%

COST OF SOLD GOODS (a) Calculated according to the inventory unit cost

COST OF SOLD GOODS (b) Calculated as the difference in inventory

You might be interested in
Cool Compartments Inc. has offered to sell 20,000 ice-makers to Refrigerator Company for $28 per unit. If Refrigerator accepts C
r-ruslan [8.4K]

Answer:

$680,000 vs $440,000

Explanation:

Total Costs to Make :

Manufacturing Costs ($34 x 20,000)                                     $680,000

Total                                                                                          $680,000

Total Cost to Buy :

Purchase Price ($28 x 20,000)                                               $560,000

<u>Less Savings :</u>

Fixed overhead ($6 x 20,000)                                                ($120,000)

Total Cost                                                                                  $440,000

7 0
2 years ago
Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the
bazaltina [42]

Answer:

* The firm's current assets and working capital at April 30:

+ Current asset $125,970

+ Working capital: $51,870

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

+ Current ratio: 1.57

+ Working Capital: $51,870

Explanation:

* The firm's current assets and working capital at April 30:

We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.

Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).

=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.

8 0
3 years ago
Read 2 more answers
Which of the following directly influences an employee's voluntary behavior and performance?
astraxan [27]

Answer:

Letter A. Role perceptions.

Explanation:

Role perception is the main factor that impacts an employee's behavior and voluntary performance, as individual perceptions are responsible for determining a person's set of actions and behaviors in a given situation. It is influenced by the set of values, experiences, emotional and social interaction with society.

Therefore, the perception of their role in the organization will directly influence their performance. Ideally, it should be determined with ethical and normative bases that benefit the employee and help in self-motivation and self-accomplishment of the work.

5 0
3 years ago
able sold to both the low and high tech segments last year, and marketing predicts able will have the same market share next yea
OverLord2011 [107]

Able sold to both the low and high-tech segments last year, and marketing predicts able will have the same market share next year. 1,841 units would you forecast for able.

Marketing describes the actions a business does to encourage the purchase or sale of a good or service. Advertising, selling, and delivering goods to customers or other firms are all included in marketing. Affiliates perform some marketing on behalf of a business.

Advertising is one of the primary methods used by marketing and promotion specialists to capture the interest of important target markets. Targeted promotions may include celebrity endorsements, memorable slogans or taglines, eye-catching packaging or graphic designs, and general media exposure.

Learn more about marketing here:

brainly.com/question/13414268

#SPJ4

7 0
1 year ago
Under section 404 of the sarbanes oxley act auditors are required to
siniylev [52]
Basically, the Sarbanes Oxley Act was not a single Act, but a series of Acts that were designed to expand starting requirements for companies such as firms and overall businesses. Section 404 is one of the Acts that are specifically set on the company's control on their financial reports made. As a result, internal management or more commonly known as the Internal Affairs program of a company must provide a detailed and clear-written (straight-to-the-point) report on the company's structure (how they do things) and creating, or establishing, a set of procedures on how they plan to report their financial status.
6 0
3 years ago
Other questions:
  • Jorge is considering an investment that will pay $4,650 a year for five years, starting one year from today. What is the maximum
    9·1 answer
  • Kevin has just finished paying off his loan. He was assessed a service charge of $422. He paid off the principal and the interes
    13·2 answers
  • You are in charge of advertising for a golf course in the southwest. the owner of the course is convinced that once-a-week adver
    11·1 answer
  • Franklin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Un
    8·1 answer
  • Which statement is true?
    7·1 answer
  • What role do individuals play in a capitalist system?
    13·2 answers
  • Which is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter th
    8·1 answer
  • The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had
    12·1 answer
  • Pr 6-3a weighted average cost method with perpetual inventory
    8·1 answer
  • Dante worked 10 hours per week at a grocery store last school year, earning minimum wage. His parents claim him as a dependent o
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!