Question 2 of 10

Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. Th

nata0808 [166]

Answer:

Option (D) is correct.

Explanation:

Calculation of total manufacturing overhead:-

4000 units manufacturing overhead:

= Production volume × Manufacturing overhead

= 4,000 × $94

= $376,000

5000 units manufacturing overhead:

= Production volume × Manufacturing overhead

= 5,000 × $77.60

= $388,000

Variable cost per unit:

$=\frac{5000\ units\ manufacturing\ overhead-4000\ units\ manufacturing\ overhead}{1000}$

$=\frac{388,000-376,000}{1000}$

= 12

Fixed cost = Total cost - variable cost

= $388,000 - 5,000 × 12

= $388,000 - $60,000

= $328,000

So total monthly fixed manufacturing cost is $328,000.

7 0

3 years ago

Franklin Electric is presently generating earnings available to common shareholders of $7.25 per share. The firm's income tax

Sphinxa [80]

Answer:

$1.45

Explanation:

First of all we need to know what is earnings available to common shareholders (EACS).

EACS is the part of earnings which is available to common shareholders after deducting preference dividend from net income after taxes.

We can understand the as follows

Net Profit after taxes $ xxxx

Less: Preference dividend (xxxx)

Earnings available to.common shareholders xxxx

From this amount is we divide number of common stocks / shares, we will get Earnings Per Share (EPS)

EPS = Earnings available to equity shareholders / number of common stock shares

Dividend Payout Ration to common stock (given) = 20%

It means the comapny is paying 20% of EPS to common stock holders and 80% of EPS is tthe retained earnings of the company

Hence dividend to common stockholder = Earnings available.to common shareholders × dividend payout ratio

= $7.25 × 20%

= $1.45

$1.45 is the dividend which company pay to common shareholders

3 0

2 years ago

In a recent year, BMW sold 217,044 of its 1 Series cars. Assume the company expected to sell 226,244 of these cars during the ye

True [87]

Answer:

The answers are:

+ Sales price variance: $65,113,200

+ Sales volume variance: $(239,200,000)

Explanation:

We have detailed calculations shown as below:

Sales price variance = ( Actual unit sales price - budgeted unit sales price) x actual unit sold = ( 26,300 - 26,000) x 217,044 = $65,113,200;

Sales volume variance = ( Actual unit sold - Budgeted unit sold) x budgeted unit sales price = (217,044 - 226,244) x 26,000 = $(239,200,000).

So, for BMW recent year, we have:

+ Sales price variance: $65,113,200;

+ Sales volume variance: $(239,200,000).

6 0

3 years ago

Read 2 more answers

Assume there are currently five firms producing and selling fertilizer in the South American market. Also assume that the produc

Jobisdone [24]

Answer:

It is given that in an oligopolistic market, there are at first five firms. At the point when the quantity of fums diminishes to three, it implies that the all out yield will likewise decrease. It is on the grounds that, all the makers are delivering separated items. The inventory of merchandise won't increment in light of the fact that the makers would have expanded the creation before, if that was conceivable. Hence, the balance amount will fall and in view of decrease in amount, cost will increase.

Thus, equilibrium price will likely <u>increase</u> and the equilibrium quantity will likely <u>decrease.</u>

3 0

3 years ago

If the money supply is $500 and nominal income is $3,000, the velocity of money is A. 1/60. B. 1/6. C. 6. D. 60.

algol [13]

Answer:

The correct option is c.6

Explanation:

For computing the velocity of money, the following formula should be used which is shown below:

The Velocity of money = Nominal income ÷ money supply

where,

Nominal income is $3,000

and, the money supply is $500

Now put these values to the above formula so that we can find out the answer

So, the answer would be equal to

= $3,000 ÷ $500

= 6

Thus, the velocity of money is 6

Hence, the correct option is c.6

5 0

3 years ago