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gregori [183]
3 years ago
9

Waterway Industries can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Uni

t Muffins 0.2 $4 Coffee Cakes 0.3 $5 The company has oven capacity of 1500 hours. How much will contribution margin be if it produces only the most profitable product
Business
1 answer:
miv72 [106K]3 years ago
4 0

Answer:

$30,000

Explanation:

                                             Muffins      Coffee Cakes

Contribution Per Unit (A)        $4                   $5

Oven Hours Required (B)      0.2                   0.3

Contribution Per Hour         $20                $16.67

Rank                                          1                        2

Total Hours Available                                                       1,500

Hours Required for 1 Unit of Muffin                                 <u>  0.2  </u>

Total Muffins Production with 1500 Hours (1,500/.2)     7,500

Contribution Per Unit                                                       <u>   $4     </u>

Total Contribution (7,500*$4)                                      <u>$30,000</u>

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Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price
slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP=  Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

 

8 0
3 years ago
In the month of June, a department had 20,000 units in Beginning Work-in-Process that were 70% complete. During June, 90,000 uni
BigorU [14]

Answer:

110,000 units

Explanation:

<u>Calculation of the equivalent units of production for materials in June</u>

Beginning work in process                                              20,000

Units started and completed (90,000-10,000)               80,000  

Ending work in process                                                    <u>10,000</u>

Equivalent units of production for materials for June <u>110,000</u> units

3 0
3 years ago
What is suggestive selling? Have you experienced an example of this? If so, describe the experience. Why do restaurants use sugg
Blizzard [7]

Answer:

Explanation:

Suggestive selling is when someone recommends a better version of the product which you are purchasing or even recommends another totally different product that may suit your individual needs better. Almost everyone has experienced this in some capacity before. For example, any time you go to a fast-food chain they always ask if you would like to increase the size of your order (super-size) for a small additional fee. This is suggestive up-selling, and companies do this because they make additional profit from these items that they are suggesting.

7 0
3 years ago
Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a bat
cestrela7 [59]

Answer:

Explanation:

1. Calculate the efficiency variance for variable overhead setup costs.

This will be calculated as:

= Standard Hours - Actual Hours) × Standard rate

= (15000/225 × 5.25 - 15000/250 × 5) × 38

= (350 - 300) × 38

= 50 × 38

= 1900 Favourable

2) Calculate the rate variance for variable overhead setup costs.

This will be:

= Standard rate- Actual rate) × Actual Hour

= (38-40) × (15000/250 × 5)

= -2 × 300

= -600 Unfavourable

3) Calculate the flexible-budget spending variance for variable overhead setup costs.

This will be the difference between the standard cost and the actual cost. This will be:

= (15000/225×5.25 ×38) - (15000/250×5 ×40)

= 13300 - 12000

= 1300 Favourable

4) Calculate the spending variance for fixed setup overhead costs.

what formular did you use.

This will be:

= Standard Cost - Actual Cost

= 9975-12000

= -2025 Unfavorable

5 0
3 years ago
) A company finds that consumer demand quantity changes with respect to price at a rate given by D'(p) = - 2000 p 2 . Find the d
Stells [14]

Answer:

D(p) = 2,000 ÷ Price + 434

Explanation:

The computation of the demand function is shown below:-

Number of units of the product = 3000 ÷ Price + C

834 = 2,000 ÷ $5 + C

834 = 400 + C

C = 834 - 400

C = 434

So, D(p) = 2,000 ÷ Price + 434

Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question

3 0
3 years ago
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