Answer:
Increases by $66,800.
Explanation:
Given that,
Direct materials = $ 200
Direct labor = 80
Manufacturing overhead (30% variable) = 150
Selling expenses (50% variable) = 50
Administrative expenses (10% variable) = 80
Total per unit = $560
If accept this offer,
Total cost:
= Material + Labor + Manufacturing overhead + Administrative
= $200 + $80 + (30% × 150) + (10% × 80)
= $200 + $80 + $45 + $8
= $333
Contribution margin per unit:
= Selling price - Variable cost
= $500 - $333
= $167
Increase in profits:
= Contribution margin per unit × Number of units offer to purchase
= $167 × 400 units
= $66,800
Answer and Explanation:
It is good to respond to These congratulatory notes or Pat's at the back because are attempts made by others to connect with you personally; people reach out to you through these efforts and professional or personal bonds can be formed because of these.
How should you respond?
You can respond by showing gratitude or by being appreciative of the gestures. You can say you are grateful for the kindness you received regarding your award.
Answer:
$17.5
Explanation:
Direct Labour- 55000
Variable Overhead- 45000
Fixed overhead- 70000
Direct material- 20000
Total = $190,000
Total relevant cost of manufacturing = Direct material + Direct labour + Variable overhead + Avoidable Fixed cost + Opportunity cost
Where Avoidable fixed cost = 10,000 units * 4 = 40.000
0pportunity cost= $15,000
Total relevant cost of manufacturing = 25000 + 55000 + 45000 + 40000 + 15000 = $175,000
Now, Price that CJP would be indifferent to XYZ Offer can be derived by: Total Relevant Cost of Manufacturing / No of unit product
= $175,000 / 10,000 units
=$17.5
Answer and Explanation:
The matching is as follows;
1. (c) the maturity value is the due amount that should be paid at the due date
2. (d) The interest is the amount that should be charged for using the money of other party
3 (b) The interest rate is the rate charged for using that money of the other party
4(a) The note receivable is the instrument that should be formal and written which shows the amount outstanding from the clients
