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34kurt
3 years ago
12

Admirable Inc. makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per

unit $72.70 $77.10 $76.10 Direct materials $33.10 $40.60 $46.40 Direct labor $22.00 $13.10 $7.20 Variable manufacturing overhead $4.60 $4.40 $3.30 Variable selling cost per unit $1.60 $3.20 $2.00 Mixing minutes per unit 2.8 1.9 2.6 Monthly demand in units 3,000 1,300 2,200 The mixing machines are potentially the constraint in the production facility. A total of 14,800 minutes are available per month on these machines. Direct labor is a variable cost in this company. How much of each product should be produced to maximize net operating income
Business
1 answer:
Fiesta28 [93]3 years ago
3 0

Answer:

Product A $3.43

Product B $8.32

Product C $6.62

Explanation:

Calculation to determine How much of each product should be produced to maximize net operating income

Product A Product B Product C

Selling price per unit $72.70 $77.10 $76.10

Direct materials $33.10 $40.60 $46.40

Direct labor $22.00 $13.10 $7.20

Variable manufacturing overhead $4.60 $4.40 $3.30

Variable selling cost per unit $1.60 $3.20 $2.00

Total variable cost per unit $61.3 $61.3 $58.9

Contribution margin per unit $9.6 $15.8 $17.2

Product A ($72.70-$61.3=$9.6)

Product B ($77.10-$61.3=$15.8)

Product C ($76.10-$58.9=$17.2)

Mixing minutes per unit 2.8 1.9 2.6

Contribution margin per unit $3.43 $8.32 $6.62

Rank in terms of profitability 3 1 2

Product A ($9.6/2.8=$3.43)

Product B ($15.8/1.9=$8.32)

Product C ($17.2/2.6=$6.62)

Therefore How much of each product should be produced to maximize net operating income will be:

Product A $3.43

Product B $8.32

Product C $6.62

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Name the four factors that affect population growth.
Alexxx [7]

Answer:

Factors affecting the population growth of a country are:

Explanation:

The population growth of a country are determined by many factors from which some are mentioned below:

  • CULTURAL ATTITUDE OF THE FAMILY: The attitude of the family towards population growth and their country plays a role in the population growth.
  • GOVERNMENT POLICIES: lack of the government policies and planing results in the population growth of a country.
  • COST OF EDUCATION: The higher the cost of education, the higher the illiteracy will be causing lack of education and awareness.
  • AVAILABILITY OF CONTRACEPTION: Availability of the medical techniques to avoid the unwanted pregnancy helps in the controlling of the population growth of a country.

6 0
3 years ago
Lamar Company is considering a project that would have an eight-year life and require a $2,400,000 investment in equipment. At t
Arada [10]

Paybackperiod=Intial investment / Net annual cash inflow

project's payback period is 4.5 years.

<h3>What is net operating income?</h3>
  • Before deducting any expenditures for financing or taxes, net operational income assesses the profitability of an income-producing asset.
  • Subtract all property-related running costs from all income earned at the property to arrive at NOI.
  • A property owner can manipulate the operational expenditures included in the NOI statistic by delaying or accelerating particular revenue or expense elements.
  • Capital expenses are excluded from the NOI statistic.
  • A property owner can use NOI to determine whether the cost of owning and maintaining a property outweighs the benefits of renting it out.

To learn more about net operating income, refer to the following link:

brainly.com/question/15834358

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5 0
2 years ago
Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
Savatey [412]

Answer:

The land basis will be $8,000 and partnership basis will be $42,000.

Explanation:

The outside basis at the end of the year is $56,000.

The cash basis is $6,000.

The fair value of land is $14,000.

The land basis to RF is $8000.

The partnership basis will be

=Outside basis-cash basis-land basis

=$(56,000-6,000-8,000)

=$42,000.

So, the land basis will be $8,000 and partnership basis will be $42,000.

5 0
3 years ago
In the context of the​ firm's supply​ curve, as the firm produces more of a​ good, the cost of producing each additional u
Flura [38]

Answer:

decrease

Explanation:

Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.

5 0
3 years ago
The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in th
OLEGan [10]

Answer:

Pelican Paper, Inc., and Timberland Forest, Inc.

Financial leverage and profitability Ratio Analysis

A. Computation of debt and coverage ratios:

1. debt ratio  = Total debt to Total assets x 100

Pelican = $1,000,000/$10,000,000 x 100

= 10%

Timberland =v$5,000,000/$10,000,000 x 100

= 50%

2. times interest earned ratio = EBIT/Interests

Pelican = $6,250,000/$100,000

= 62.5 times

Timberland = $6,250,000/$500,000

= 12.5 times

A discussion of their financial risk and ability to cover the costs:

Pelican Paper's financial leverage is 10% compared to Timberland's 50%, showing that debt creditors finance and lay claim to half of the company's assets.  This is very high and not attractive to potential investors and creditors.  Timberland has already hampered its ability to borrow more as it is highly leveraged.  Whereas Pelican Paper can meet its debt obligations and pay its interest expenses 62.5 times from current earnings, these pale in comparison with Timberland's 12.5 times, further jeopardizing its opportunities for more debt financing.

B. Calculation of the profitability ratios:

1. Operating profit margin  = EBIT/Sales x 100

Pelican Paper = $6,250,000/$25,000,000 x 100 = 25%

Timberland = $6,250,000/$25,000,000 x 100 = 25%

2. Net profit margin  = (EBIT less Interest)/Sales x 100

Pelican Paper = ($6,250,000 - $100,000)/$25,000,000 x 100

= $6,150,000/$25,000,000 x 100 = 24.6%

Timberland = ($6,250,000 - $500,000)/$25,000,000 x 100

= $5,750,000/$25,000,000 x 100 = 23%

3. Return on total assets  = EBIT/Total Assets x 100

Pelican Paper = $6,250,000/$10,000,000 x 100

= 62.5%

Timberland = $6,250,000/$10,000,000 x 100

= 62.5%

4. Return on common equity = Earnings available to Common Stockholders/Equity x 100

Pelican = $3,690,000/$9,000,000 x 100

= 41%

Timberland = $3,450,000/$5,000,000 x 100

= 69%

A discussion of their profitability relative to one another:

The two companies make the same level of operating profit margin at 25%, but Pelican's net profit margin of 24.6% is better than Timberland's 23%.  They show that Pelican's management has better ability to control expenses than Timberland's.

The returns on assets are similar for both companies, but Timberland performed better than Pelican Paper in terms of the return on equity.  This shows that Timberland with ROE of 69% is making larger returns for its common stockholders than Pelican because it is leveraging debts, whose interests are tax-deductible, and also using less equity in generating the returns.

C. The larger debt of Timberland has made it more profitable than Pelican Paper because the debt interests are deductible from EBIT before tax expense is computed and it reduces the tax burden for the company, thus making it to pay less tax and saving more profits for distribution to its stockholders.

However, this higher return to the investors in Timberland also comes with higher risks, as the investors are exposed to debt risks, higher pressure to satisfy debt creditors, heightened interference and oversight from creditors since they own half of the assets of the company, and an increased threat of business takeover in case of debt default.

Explanation:

a) Data:

Items                        Pelican Paper, INC    Timberland Forest, INC

Total assets              $10,000,000               $10,000,000

Total equity                  9,000,000                   5,000,000

Total Debt                     1,000,000                   5,000,000

Annual Interest                100,000                      500,000

Total Sales                 25,000,000                25,000,000

EBIT                              6,250,000                  6,250,000

Earnings available for  common

stockholders               3,690,000                   3,450,000

b) Ratio computation and analysis help companies to compare their performances and positions with competitors.  They can spot risks facing a company and even point out ways to address such business risks.

8 0
3 years ago
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