Grade 12

A cement manufacturer has supplied the following data: Tons of cement produced and sold 225,000 Sales revenue $1,035,000 Variabl

sergij07 [2.7K]

Answer: $2.6 per unit.

Explanation:

Given that,

Tons of cement produced and sold = 225,000

Sales revenue = $1,035,000

Variable manufacturing expense = $421,000

Fixed manufacturing expense = $280,000

Variable selling and administrative expense = $29,000

Fixed selling and administrative expense = $220,000

Net operating income = $85,000

Sales price per unit:

= $\frac{Sales\ revenue}{total\ cement\ produced\ and\ sold}$

= $\frac{1,035,000}{225,000}$

= $4.6 per unit

Variable cost per unit:

= $\frac{Variable\ manufacturing\ expense\ + Variable\ selling\ and\ administrative\ expense}{total\ cement\ produced\ and\ sold}$

= $\frac{421,000 + 29,000}{225,000}$

= $2 per unit

Contribution margin = Sales price per unit - Variable cost per unit

= $4.6 - $2

= $2.6 per unit

4 0

3 years ago

Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 mill

SVETLANKA909090 [29]

Answer:

d. 1.0.

Explanation:

Four-firm concentration ratio is the ratio of the sales of the four largest firms in the industry relative to total industry sales. In industry B total sales is of $10 million and the top four combined have total sales of $10 million

Therefore, the four firm concentration ratio = $10 million/ $10 million = 1

Therefore correct answer is option B i.e. 1.0

7 0

3 years ago

Lemony Company made sales of $38,000 million during 2018. Cost of goods sold for the year totaled $16,340 million. At the end of

Evgesh-ka [11]

Answer:

Gross profit = 57%

Inventory turnover = 8.60 Times

Explanation:

The gross profit percentage can be calculated by dividing the gross profit by sales. Inventory turnover can be calculated by dividing the cost of goods sold by the average inventory, in this case average inventory is not given in the question. Average inventory can be calculated by dividing the sum of opening and closing inventory with 2.

Gross profit = (Sales - Cost of goods sold) / Sales x 100

Gross profit = (38,000 - 16,340) /38000 x 100%

Gross profit = 21,660/38,000 x 100

Gross profit = 57%

Inventory turnover = Cost of goods sold / Average inventory

Inventory turnover = 16340/1900

Inventory turnover = 8.60 Times

Average inventory = (1800 + 2000) /2

Average inventory = 1900 Million

8 0

3 years ago

The accounting records of Baddour Company provided the data below.

Tom [10]

Answer:

Net cash flow from operating activities $1,700

Explanation:

The preparation of the reconciliation of net income to net cash flows from operating activities is shown below:

Net loss -$5,000

Add: Depreciation expense 6,000

Add: Increase in salaries payable 500

Add: Decrease in accounts receivable 2,000

Less; Increase in inventory 2,300

Add; Amortization of patent 300

Add; Reduction in discount on bonds 200

Net cash flow from operating activities $1,700

5 0

3 years ago

In preparing a company's statement of cash flows for the most recent year, the following information is available:

Butoxors [25]

Answer:

- $ 138,000

Explanation:

The investment activities includes the transaction done on purchasing the equipment and selling the land.

Thus, for the given question

The list of investment activities:

Purchase of Equipment = - $ 149,000

Proceeds from Sales = $ 130,000

Purchase of Land = - $ 119,000

here, the negative sign depicts the amount is paid

thus, the net cash flow from the investment activities

= - $ 149,000 + $ 130,000 + (- $ 119,000)

or

the net cash flow from the investment activities = - $ 138,000

3 0

3 years ago

Read 2 more answers