Most of us have similar values, but we might put them in vastly different orders of importance.

Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing process. Variable costs are $

pogonyaev

Answer:

a. $143,000

b. $140,000

Explanation:

The computation is shown below:

a. For making 40,000 units

Particulars Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Variable cost per unit $1.95 $78,000

Fixed manufacturing costs $65,000 $65,000

Total incremental cost to make $143,000

The $78,000 is come from

= $1.95 × 40,000 units

= $78,000

b. And, for buying 40,000 units

Particulars Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs

Purchase price per unit $3.50 $140,000

The $140,000 is come from

= $3.50 × 40,000 units

= $140,000

8 0

3 years ago

Abby's Designer Wear is a large boutique of designer clothes. Over the past year, the business slowed down, and the boutique sta

Luden [163]

Answer:

Participative leadership

Explanation:

Participatory leadership is an organizational aesthetic that encourages employee input into all or most business decisions.

Employees are given relevant information about company issues, as well as the course of action the company will take is determined by a majority vote.

5 0

3 years ago

TOMS is a shoe company that, since its inception, has given away one pair of shoes to someone in need for every pair purchased b

Dafna11 [192]

Answer:

Socially responsible

Explanation:

A socially responsible company is one that seeks to identify as well as relieve the social needs in its business environment.

A major social problem or need around the world is the lack of clean drinking water and birthing services. Thus, by proffering solutions to this problem loyal customer of TOMS shoe company could notice that the company takes seriously its responsibility to the society.

3 0

3 years ago

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

valkas [14]

Answer:

The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.

The company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. At the end of a period, if required adjusting entry, the adjusting entry:

Debit Interest expense and Credit Interest Payable

3 0

3 years ago

To produce x units of a religious medal costs Upper C (x )equals 17 x plus 32. The revenue is Upper R (x )equals 25 x. Both cost

daser333 [38]

Answer:

a) 4 units

b) $2048

c) 14 units

Explanation:

Break-even quantity (BEP) is the level of activity that a business must operate to make its total revenue equal to its total cost. At this point, the business makes no profit or loss. It gives an idea of the exact number of units of product to be sold in order to cover its total fixed cost.

Break-even point (BEP) is calculated as follows:

BEP (units) = Total Fixed Costs for the Period/ (SP - VC)

SP- selling price, VC- variable cost per unit

Profit : This is the excess of the total revenue over and above the total cost .

Profit = Total revenue - total cost.

Total revenue = SP × units sold

Total cost = Variable cost + Fixed cost

Total variable cost = VC per unit × units sold

The number of units t achieve a target profit is determined as follows:

Units to achieve profit = (Total fixed cost + Target profit)/(SP - VC)

Now we can apply all these concepts to our question,

From the question, VC per unit= $17, SP per unit= $25, Fixed cost = $32

a) BEP = 32/(25-17) = 4 units

b) Profit from 260 units

Profit = (25 ×260) - ((17 × 260) + 32)

= $6,500- $4,452

= $2048

c) Units to be produced to achieve a profit of $80

Units = (32 + 80)/(25-17)

= 14 units

3 0

3 years ago