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Alexeev081 [22]
3 years ago
12

Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140 each. Direct materials cost $22 per

unit, and direct labor costs $15 per unit. Manufacturing overhead is applied at a rate of 280% of direct labor cost. Nonmanufacturing costs are $34 per unit. What is the gross profit margin for the cat condos
Business
1 answer:
Darina [25.2K]3 years ago
8 0

Answer:

43.57 %

Explanation:

The computation of the gross margin for the cat condos is given below:

Total Manufacturing Cost per unit is

= Direct materials + Direct labor + Manufacturing overhead  

=  $22 + $15 + ( 280% of $15)

= $79

Now

Gross Profit is

= Selling price per unit - Total Manufacturing Cost per unit

= $140 -  $79

= $61

And finally

Gross Profit Margin is

= (Gross Profit ÷ Selling Price ) × 100

= ($61 ÷ $140) × 100

= 43.57 %

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4 years ago
Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $95.50, b
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The cost of the preferred stock including flotation is 13.37%.

Explanation:

The computation of the cost of the preferred stock is shown below:

= Annual dividend ÷ Price × (1 - flotation cost)

= $11 ÷ 87.50 × (1 - 0.06)

= $11 ÷ $82.25

= 13.37%

Hence, the cost of the preferred stock is 13.37%.

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2 years ago
Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do no
Veronika [31]

Answer:

Time utility

Explanation:

Organizations try to understand the demands of the consumers before before important decisions. From the questions, it is clear that the department stores over time have understood when customers prefers not to stock spring colored items because during the spring and fall, brown and green items are mostly sort after. Thus time utility which entails making available certain products to consumers depending on their needs, weather condition, or seasons is the most likely answer to this question.

3 0
3 years ago
Identify two to three factors that affect revenue, expenses, and profit in the business of the Super Bowl:
scoundrel [369]

Answer:

Revenue

  • Ticket Sales - The Super Bowl is one of the most watched sporting events in the world and people pay top dollar to be able to attend it in the stadium. In 2019 the lowest estimate of revenue coming from ticket sales was $65 million.
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  • Merchandising - Millions are made in revenue from the sales of merchandise leading up to and after the big game.

Expenses

  • Security - With so many people coming to the event, there has to be a provision for both private and public security. This means that Police will have to be paid for overtime and private firms will have to be paid their due.
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Profits

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5 0
4 years ago
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Ymorist [56]

Answer:

<em>E. Perceived benefits versus perceived costs of search</em>

Explanation:

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Because perceived benefits is something which is been related to the positivism, in perceived costs of search it is related to the cost of the unit and in this a customer expends on what they think and researched, by performing a certain or a particular action.

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