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3 years ago

Tamarisk has the following inventory data:

Business

1 answer:

DerKrebs [107]3 years ago

5 0

Answer:

Option A

Total cost of goods sold = $<u>1,007.7</u>

Explanation:

<em>Under the last -in-first-out (LIFO) method, inventory are priced using the price of the newest/latest batch in stock until a new batch is received after which the price of the new batch is used and this is continued.</em>

So we apply the principle as follows:

July 14 sale of 83 units = 83× 6.90 = 572.7

July 30 sale of 58 units = 58× 7.50 = <u>435</u>

Total cost of goods sold <u>1,007.7</u>

Total cost of goods sold = $1,007.7

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5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses

gogolik [260]

Question Completion:

Due to erratic sales of its sole product - a high capacity battery for laptop computers - PEM, Inc., has been experiencing difficulties for some time. The contribution format income statement for the most recent month is given as follows:

Sales (19,500 units at $30 per unit) $585,000

Variable expenses 409,500

Contribution margin 175,500

Fixed expenses 180,000

Net operating margin ($4,500)

Answer:

PEM, Inc.

a1) New CM ratio = 40%

a2) Break-even point in unit sales and dollars sales

i) Break-even point in unit sales = Fixed Expenses/Contribution per unit

= $237,000/$12

= 19,750 units

ii) Break-even point in dollars sales = Fixed Expenses/Contribution margin ratio

= $237,000/0.4

= $592,500

b. Contribution format income statements, based on sales of 20,800 units:

Without With

Automation Automation

Sales (20,800 units at $30 per unit) $624,000 $624,000 (20,800 * $30)

Variable expenses (20,800 at $21) 436,800 374,400 (20,800 * $18)

Contribution margin (20,800 * $9) 187,200 249,600 (20,800 * $12)

Fixed expenses 180,000 237,000

Net operating margin $7,200 $12,600

c) I would recommend that the company should automate its operations. It will generate more net operating margin, equal to $5,400 ($12,600 - $7,200), when it automates than when it does not, assuming that it expects to sell 20,800 units.

Explanation:

a) Data and Calculations:

Variable expenses reduction = $3 per unit

Old variable expenses per unit = $21 ($409,500/19,500)

New variable expenses per unit = $18 ($21 - $3)

New variable expenses = $351,000 ($18 * 19,500)

New Contribution Margin per unit = $12 ($30 - $18)

New Contribution margin ratio = $12/$30 * 100 = 0.4 or 40%

Old Fixed Expenses = $180,000

New Fixed Expenses = $237,000 ($180,000 + $57,000)

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2 years ago

A retailer has noticed that his cost of goods from a specific supplier always seem to be increasing—affecting the gross profit o

lions [1.4K]

The action that the retailer could take is that He or she can ask the supplier for an explanation for the price increases and then he can Keep raising retail price of the item(s) to compensate for the price increases from the supplier.

<h3>What brings an increase in gross profit margin?</h3>

A retailer can experience an increase in the sales volume and this is one that can lead to a reduction in the cost of goods sold based on the fixed manufacturing cost per unit is said to be smaller as production volume is getting bigger.

An increase in sales is known to be one that is followed by a decrease in cost of goods sold per unit that therefore leads to a higher gross profit margin.

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1 year ago

What are the underlying reasons for the law to continue to make distinctions between real and personal property, intangible and

kap26 [50]

Answer:

In trying to made distinction between the real and personal property as the law provided, there is need to define both terms.

Real properties are those properties that can not be move from one place to another, I.e, they are immovable. Example of such property is land and the building constructed on it or agricultural practices on a particular land. In some textbooks, they are regarded as fixed asset such as a manufacturing plants which are in most cases not likely to be removable after the foundation as been laid due to the heaviness of the machines.

While

Personal property are those properties that are movable and example of such is money.

So, in both properties, the nature of use and level of controls the owner have over them differs and that is why the law provided specific rules and regulations over their ownership, possession and or transferrability. As for Real Properties, the law is very strict about it since it is a rigid property and its transferrability requires deed of agreement which much must be signed by witnesses from all parties involves and registered at the deed registry. The law also provides very strict tax regulations on landed property. As for the personal property, the regulation on it is less compare to that of real since it's movable and can be asset by the owner at any time and transfer of ownership is flexible. So, the law will continue to make distinction between these two types of property as they requires different regulations and their level of control differs.

Also for the tangible and intangible property, the law will continue to make distinction between them since one can be seen and the other can't.

Tangible properties are those properties that can be seen, touch, and physically acquired or taken into possession. Example is land, Building or workshop, Automobile. e.t.c

While,

Intangible properties are those properties that can not seen physically but exist on papers. Their impact can only be felt. Example of such properties are intellectual properties that are backed by copyrights, Academic presentations protected from plagiarism, checks and certificates of deposits.

From their definition, it is important to state that law will continue to make distinction between them since the control of ownership differs.

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3 years ago

At the beginning of the conversation, norio wants to discuss sushi with michael, but michael is more interested in getting the c

d1i1m1o1n [39]

Based on global management, it seems Michael was not cognizant of Norio coming from a <u>high-context culture</u>.

<h3>What is global management?</h3>

Global management can be defined as an international business practice in which a business organization (company) utilizes its employees (management team) and resources to carry out its business on an international level.

<h3>What is a high-context culture?</h3>

A high-context culture can be defined as a type of cultural communication in which the people focuses on underlying context and situational cues, meaning, nonverbal cues, and tone of a message, rather than just the words themselves when communicating with others.

In this context, we can reasonably infer and logically deduce that it seems Michael was not cognizant of Norio coming from a high-context culture because he is exhibiting low-context culture characteristics, by being more interested in signing a contract.

Read more on high-context culture here: brainly.com/question/17438233

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Complete Question:

At the beginning of the conversation, Norio wanted to discuss sushi with Michael, but Michael is more interested in getting the contract signed. Based on what you've learned about global management, it seems Michael was not cognizant of Norio coming from a ______.

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1 year ago

BRAINLIEST!!!!

77julia77 [94]

Answer: It can be deduced that it's unethical for your employees to use their work computers for personal activities?

Explanation:

What is ethics?

It should be noted that ethics simply means the principle of knowing what is right from what is wrong.

In this case, it's unethical for your employees to use their work computers for personal activities. This isn't appropriate.

Furthermore, it's ethical for you to monitor computer usage. This is necessary to checkmate the activities of the employees.

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2 years ago