Answer:
Bargain Electronics
Bargain Electronics would realize a net income of $6,000 by accepting the special order.
Explanation:
a) data and Calculations:
Production costs of MP3 Player:
Variable cost = $20
Fixed cost = $10
Total costs = $30
Selling price = $45
Special order from a foreign wholesaler = 3,000 units
Special order selling price = $25 per unit
Additional special shipping costs per unit = $3
Variable production costs = $20
Total costs for the special order = $23 ($3 + $20)
Net income from special order = $6,000 ($2 * 3,000)
Answer:
11,000 people
Explanation:
fixed costs per store $80,000
variable cost ratio 0.80
average sale per customer $15
average customer sales per week 1.75
customers as portion of population 4%
each customer shops 1.75 x 52 = 91 times per year
contribution margin per visit = $15 - ($15 x 0.8) = $3
contribution margin per client per year = $3 x 91 = $273
in order to make $40,000 in profits, you need at least:
($80,000 + $40,000) / $273 = 439.56 ≈ 440 customers
to determine the city's total population = 440 / 0.04 = 11,000
Answer:
d. classified as a common fixed expense and not allocated to the product lines.
Explanation:
In the case when the income statement is segmnented by the product line so the salary of the chief executive officer (CEO) would be categorized as a common fixed expenses as it has fixed in a nature so it would not be allocated to the product lines
Therefore as per the given situation, the option D is correct
Hence, the same is to be considered
Answer:
1. $3.20 x 2.20 = $7.04
2. It will be favorable.
3. It will be unfavorable.
4. Direct material price variance = $22
Direct material quantity variance = 0.48
Explanation:
1. Standard direct cost per unit=cost of direct materials price x direct material standard quantity per unit.
2. It will be favorable because they expected or had budgeted to pay $3.60 per foot for the material but the actual cost became $3.20. So they pay $0.40 less than they had expected to pay.
3. It will be unfavorable because they had planed or budgeted for each unit to use 2.05 feet of leather but they ended up needing 2.20 feet of leather per collar so that means they under budgeted by 0.15 feet.
4. Direct material price variance =( $3.60 x 55) less ($3.20x55)=$22
The total amount that was budgeted or expected to be paid is subtracted from the total actual price that was paid.
Direct material quantity variance = (2.05x$3.20) less (2.20x$3.20)= -0.48
The total direct material quantity that is used is subtracted from the quantity that was expected to be used.
Answer:
$310,500
Explanation:
The first step is to calculste the increase in account payable
= ending amount-beginning balance
= $29,000-$11,500
= $17,500
Decrease in account receivable
= $21,000-$18,000
= $3,000
Therefore the cash flow can be calculated as follows
= $290,000 + $17,500 + $3000
= $310,500
