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likoan [24]
2 years ago
10

The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly furt

her and selling it for $51 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $225,000.
Required:
Prepare an analysis showing whether Jensen should process the assemblies further.
Business
1 answer:
WINSTONCH [101]2 years ago
7 0

Answer and Explanation:

The preparation of the analysis shows whether the assemblies should process further or not is presented below:

Differential revenue  (38,000 units × ($51 - $44)) $266,000

Differential costs:  

Direct material (38,000units × $2 per unit) ($76,000)

Direct labor (38,000units × $2 per unit) ($76,000)

Variable overhead (38,000units × $1 per unit) ($38,000)

Fixed costs ($160,000  - $225,000) ($65,000)

Additional income (loss) from processing further $11,000

Since the amount comes in positive so it should be processed further

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Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why i
Vesna [10]

Answer:

Builtrite has higher than average operating expenses

Explanation:

Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.

A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.

Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.

4 0
3 years ago
According to a recent survey, what percentage of local police agencies has experienced a "measurable increase" in the reporting
zheka24 [161]

According to a recent survey, 80 percentage of local police agencies has experienced a "measurable increase" in the reporting of computer and electronic crimes.

What is electronic crimes?

Tajikistan, Bangladesh, and China are the nations with the least cyber-security in the world, according to our research. Tajikistan had the greatest rates of crypto miner assaults (5.7%), PCs experiencing at least one local malware attack (41.16%), and users being attacked by banking malware (4.7%).

Some internet crimes target tangible objects like computers or servers. These offenses include copyright infringement, IPR violations, hacking, virus transmission, cyber and typo squatting, computer vandalism, and DDOS attacks.

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3 0
9 months ago
Metzler Communications designs and programs a website for a local business. Metzler charges $33,000 for the project, and the loc
Grace [21]

Answer and Explanation:

1. The Journal entry is shown below:-

Notes receivable Dr, $33,000

        To Sales revenue $33,000

(Being sales is recorded)

2. The computation of interest is shown below:-

Interest = $33,000 × 4% × 6 ÷ 12

= $660

3. The Journal entry is shown below:-

Cash Dr, $33,660

       To Interest income $660

       To Notes receivable $33,000

(Being collection of notes receivable is recorded)

3 0
3 years ago
A business's budget estimates yearly sales of $735,650. if the business plans to spend 38%
r-ruslan [8.4K]

The amount that it should budget for total expenses is: $456,103.

<h3>Budgeted total expense</h3>

Using this formula

Total expenses=(Yearly sales×38%)+ (Yearly sales×24%)

Let plug in the formula

Total expenses=$279,547+$176,556

Total expenses=$456,103

Therefore the correct option is A.

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7 0
2 years ago
the regular selling price of a mountain bike is $369.27. the markdown rate is 27%. use the percent paid to determine the sale pr
Ganezh [65]

The sale price of the mountain bike is $468.97 (369.27 x 27% = 99.70 + 369.27)

3 0
3 years ago
Read 2 more answers
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