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Sergio039 [100]
3 years ago
8

Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A

B C Selling price $9 $14 $18 Variable costs and expenses $6 $12 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured
Business
1 answer:
Degger [83]3 years ago
8 0

Answer:

Product A = 1.50

Product B =  2

Product C =  1.50

Explanation:

Contribution margin = (price - variable cost) /  total number of hours

Product A = ($9 - $6) / 2 = 1.50

Product B = ($14 - $12) / 1 = 2

Product C = ($18 - $15) / 2 = 1.50

Product B would be produced because its contribution margin is the highest

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Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the compa
san4es73 [151]

Answer:

$716 and $12,300

Explanation:

Original Cost = $16,000 + $2,100

Original Cost = $18,100

Double decline rate = 100/5*2

Double decline rate = 40%

First Year Depreciation = $18,100*40%

First Year Depreciation = $7,240

Second Year Depreciation = $18,100*60%*40%

Second Year Depreciation = $18,100*0.60*0.40

Second Year Depreciation =  $4,344

Third Year Depreciation = ($18,100 - $7,240 -  $4,344 -$5,800)

Third Year Depreciation =  $716

Accumulated Depreciation = $7,240 +  $4,344 + $716

Accumulated Depreciation = $12,300

5 0
3 years ago
Jada converted her personal residence to rental property in 2018. She purchased the property in 2014 for $110,000, of which $10,
creativ13 [48]

Answer:

a)Jada's basis for depreciation in the property is NIL.

b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Explanation:

Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).

According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.

IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.

Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.

2) Personal property with no intrinsic value:

Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.

Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.

5 0
3 years ago
Item 6Item 6 Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50
Kipish [7]

Answer:

$1.07

Explanation:

The marginal cost measures the change in total cost of adding on more worker divided by the change in product for this additional worker (marginal product of labor). When adding one more worker, costs will increase by $80 (wage rate), while product will increase by 75. Therefore, the marginal cost is:

MC=\frac{80}{75}\\MC=\$1.07

The marginal cost is $1.07.

3 0
3 years ago
List three pieces of information listed in a credit card agreement that you believe are important to review before signing up fo
expeople1 [14]

Explanation:

Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don’t pay the whole balance off each month. You can compare the APR for different cards which will help you to choose the cheapest. You should also compare other things about the cards, for example, fees, charges and incentives

Annual fee. Some cards charge a fee each year for use of the card. The fee is added to the amount due and you will have to pay interest on the fee as well as on your spending, unless you pay it in full.

Minimum repayment. If you don’t pay off the balance each month, you will be asked to repay a minimum amount. This is typically around 3% of the balance due.

3 0
3 years ago
Read 2 more answers
Common-Sized Income Statement Revenue and expense data for the current calendar year for Lyons Electronics Company and for the e
alexandr402 [8]

Answer:

Explanation:

In common sized income statement , each line item is expressed as a percentage of sales turnover and compared to the percentage industry standard for analysis purpose.

                                   Lyon              %              Industry %

Revenue                   7,500,000        100            100

Cost of goods          (4,125,000)        55              61

Gross profit               3,375,000         45             39

Selling expenses     (2,250,000)        30             23

Admin Expenses        (525,000)         7               10

Total Operating Exp   (2,775,000)      37             33

Operating income        600,000         8                6

Other revenue                30,000        0.4              3

Other expenses               (7500)        0.1                1

Income before tax          622,500      8.3              8

Income Tax                      187,500        2.5             2.5

Net Income                     435,000       5.8             5.5

4 0
3 years ago
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