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zhuklara [117]
2 years ago
9

For the current year, Power Cords Corp. expected to sell 42,000 industrial power cords. Fixed costs were expected to total $1,65

0,000; unit sales price was expected to be $3,750; and unit variable costs were budgeted at $2,250. Power Cords Corp.'s margin of safety (MOS) in units is:
A. 40,900.
B. 48,800
C. 39,000.
D. 32,500.
E. 36,100.
Business
1 answer:
Bond [772]2 years ago
3 0

Answer:

A. 40,900

Explanation:

Calculation for what Power Cords Corp.'s margin of safety (MOS) in units is:

First step is to calculate the Break-even

Break-even units = $1,650,000/($3,750 - $2,250)

Break-even units= 1,100 units

Now let calculate the margin of safety (MOS) in units

Margin of Safety = 42,000 - 1,100

Margin of Safety= 40,900 units

Therefore Power Cords Corp.'s margin of safety (MOS) in units is:40,900

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Answer:

3 cases

Explanation:

Marginal product refers to change in the total output when an additional input is employed. For example, output is 5 units when 2 laborers are employed. When another unit of input i.e 3rd laborer is employed, the output rises to 9 units. In this case marginal product of the 3rd unit of labor would be 9 - 5 i.e 4 units.

In the given case, before Atul is hired, the production was 4 cases per week. After his being hired, it rose to 7 cases per week. Thus Atul's marginal product in the given case would be 7 - 4 i.e 3 cases.

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3 years ago
FLASH Delivery has EPS of $6.00 per share and has a payout ratio of 40%. Its dividend is expected to grow at a rate of 5.25%. If
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Answer:

The answer is "Option c"

Explanation:

The Dividend payout ratio is 40% so that EPS* is the dividend payout ratio of the company:

= 6 \times 40 \% \\\\= \$ \ 2.40

Inventory market value:

= Dividend \times \frac{(1+g)}{(r-g)}

Where r = return rate is needed

g= growth = 5.25\% = \frac{5.25}{100} = 0.0525

\to 22.86 = \frac{(2.4 \times (1+g))}{ r-0.0525}\\\\\to 22.86 = \frac{(2.4 \times (1+0.0525))}{r-0.0525}\\\\\to (22.86 \times r)-(22.86 \times 0.0525)=2.526\\\\\to (22.86  \times r)-1.20015=2.526\\\\\to 22.86r=3.72615\\\\\to r=0.1630\\\\\to r=16.30 \%

6 0
3 years ago
Strategies developed at the departmental level, such as the accounting, human resources, production, and marketing departments,
mrs_skeptik [129]

Answer:

D. Functional Strategies

Explanation:

Functional Level Strategy is the strategy which is formulated in other  assist in the execution of corporate and business level strategies. These strategies are formulated based on the  guidelines given by the top level management.

The functional level management is concerned with tactical decision making i.e making decisions in the operational level of the organisation department which might include production, marketing, finance, human resource, research and development etc.

The functional level strategy is a day to day strategy that assist in achieving the broad aim of the organisation  

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3 years ago
A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units. I
Scrat [10]

Answer:

  1. A1 = $12 A2 = $9.20 A3 = $1.50
  2. Total Overhead for Standart Product              $267.16
  3. Total Overhead for Deluxe Product              $163.48

Explanation:

First we will Calculate the rates:

This is done by adding the two product activity use to get the total cost driver.

Then we divide by the activity cost to get the rate:

\left[\begin{array}{cccc}activity&cost&driver&rate\\1&93,000&7,750&12\\2&92,000&10,000&9,2\\3&8,700&5,800&1,5\\\end{array}\right]

Next we check the overhead per unit:

units/ activity use x rate = overhead for activity

<em>Standart Product Manufacturing Overhead</em>

36,375units /2,500 Use Activity 1   x $12    =  $174.60

36,375units /4,500 Use Activity 2 x $9.20 =   $74.37

36,375units /3,000 Use Activity 3  x $1.50=      $18.19

Total Overhead for Standart Product              $267.16

<em>Deluxe Product Manufacturing Overhead</em>

62,240units /5,250 Use Activity 1   x $12    =   $83,14  

62,240units /5,500 Use Activity 2 x $9.20 =   $60,85

62,240units /2,800 Use Activity 3  x $1.50=      $19,49

Total Overhead for Deluxe Product              $163.48

 

 

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