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N76 [4]
3 years ago
15

The Foundational 15 [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5][The following information applies to the questions displayed below.]Dieg

o Company manufactures one product that is sold for $80 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 40,000 units and sold 35,000 units.Variable costs per unit:Manufacturing:Direct materials $ 24Direct labor $ 14Variable manufacturing overhead $ 2Variable selling and administrative $ 4Fixed costs per year:Fixed manufacturing overhead $ 800,000Fixed selling and administrative expense $ 496,000The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.Foundational 7-1313. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.

Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

See attached file

Explanation:

To obtain sales, the quantity sold is multiplied by the sale price in each of the regions.

Variable costs are multiplied by each of the quantities

Fixed costs are distributed according to what the company determined

From the difference between sales and variable costs we get the Contribution Margin. If the fixed costs are subtracted, the Segment Margin of each sector is obtained. Subtracting fixed costs that cannot be distributed, gives the Net Income.

The Fixed manufacturing overhead $ 800,000 was distributed between 40.000 units (produced units) not 35.000 (sold units)

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3 years ago
f interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to
aleksklad [387]

Answer: b) Investment demand had been greater than savings

Explanation:

Investment in the economy comes from savings by households also known as Loanable funds. If investment demand is higher than the savings supply this demand will pull the interest rate up due to a lack of loanable funds.

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2 years ago
Allen, inc., has a total debt ratio of .34. what is its debt-equity ratio
lawyer [7]
Total debt ratio is the ratio of total debt to total assets 
i.e 
Total debt ratio = Total debt / Total assets  
But Total assets is nothing but total equity plus total debt  
Now let us consider, 
TD = Total debt  
TE = Total equity 
TA= Total assets   
Therefore, 
Total debt ratio = TD/TA 
But as mentioned above 
TA = TD + TE  
total debt ratio = Total debt/(total debt+total equity) 
total debt ratio = .34(given) 
.34 = TD / (TD + TE)  
Solving this equation yields:  
0.34 = 1/(1+ TE/TD) 
0.34(1+TE/TD) = 1 
0.34 + 0.34TE/TD =1 
.34(TE/TD) = 1 - 0.34 
0.34 (TE/TD) = 0.66 
0.34TE = 0.66TD  
Now, Debt equity ratio is the ratio of Total debt to total equity  
Debt-equity ratio = TD / TE 
Debt-equity ratio = 0.34 / 0.66 
Debt-equity ratio = 0.51515152
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3 years ago
Several years ago, The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune
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therefore, the present value annuity factor = 9.6036

the present value of the annuity = $471,035.65 x 9.6036 = $4,523,637.97 ≈ $4,523,638

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using the IRR function in Excel, the return that Enhance was looking for was 9.05%

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2 years ago
What are the advantages of a Free Enterprise system to consumers?
nlexa [21]
Answer is d. all of the above
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