1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleonysh [2.5K]
3 years ago
11

Westfield Graziers packages and distributes three grades of animal feed. The material cost per tonne and estimated annual sales

for each of the products are as follows.Product Material cost Estimated salesSuper Premium $16.00 2,000 tonnesPremium $12.00 3,000 tonnesEconomy $10.0 5,000 tonnesThe indirect cost of operating the machinery used to package all three products is $40 000 per year. In the past, prices have been set by allocating the indirect costs to products on the basis of estimated sales in tonnes. The resulting total costs (material costs plus allocated fixed overhead) are then marked up by 100 per cent.RequiredCalculate the price per tonne for each grade of feed using the method described for setting prices. (10 marks)Does the price in part (a) take into account how much customers are willing to pay for the product? (5 marks)
Business
1 answer:
7nadin3 [17]3 years ago
8 0

Answer:

1. Particulars                     Super premium      Premium      Economy

Material cost                            $16                        $12              $10

Indirect cost (40000/10000)  <u>$4 </u>                        <u>$4 </u>              <u>$4</u>

Total cost                                 $20                       $16              $14

Profit (100% of total cost)        <u>$20 </u>                      <u>$16 </u>             <u>$14</u>

Selling price                             <u>$40</u>                       <u>$32 </u>            <u>$28</u>

<u />

2. Yes, the price calculated in part A takes into account what customers are willing to pay. This can be said because the company has the policy of adding 100% to the total cost. This means that the company knows that customers will be willing to pay that much amount.

You might be interested in
Theresa owes $9,000 on her car loan. If the value of her car is $15,000, what is her equity in the car?
pentagon [3]

Answer:

Theresa has $6,000 in equity.

Explanation:

To get this answer, you take the value of her car ($15,000) and subtract the amount that she owes from it ($15,000-$9,000). This gives you $6,000.

Hope this helps!

7 0
3 years ago
Use the expenditure multiplier to calculate the change in AD that would result from a $100 million increase in government spendi
adelina 88 [10]

Answer:

If MPC is 0.8, Change in GDP    =  $500 million

If MPC is 0.95, Change in GDP =  $2,000 million

Explanation:

<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>

It is calculated as follows: 1/(1-MPC).

MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5

Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be

Change in GDP =  change in autonomous expenditure × Multiplier

                          = 100 ×  5 = $500 million

<em>Scenario 2, MPC of 0.95</em>

Expenditure Multiplier = 1/(1-0.95) = 20

Change in GDP= 100 × 20 = $2000 million

6 0
3 years ago
Which type of report usually lists just transactions?
Crank

<span>A detailed report is a report that usually lists only transactions. From the name itself, detailed report gives you very detailed information regarding the value of time spent by every member in a certain tasks within a given projects.  It also displays table with data categorizes by users, tasks, and projects, billable time and amount.</span>

3 0
3 years ago
I Need helpppp asappp!
guapka [62]

Answer:

A

Explanation:

I don't know if I am correct but I am going to try. Debit cards, checks and credit cards come from your money. So that leaves EPTs. Sorry if I am wrong.

7 0
3 years ago
Read 2 more answers
On June 30, the board of directors of Sandals, Inc., declares and pays a 100% stock dividend on its 30,000, $1 par, common share
Gwar [14]

Answer:

The accounting entries is as follows:

Debit Retained Earnings($35 by 30,000 shares) $1,050,000

Credit: Common Shares Account at Par Value($1 by 30,000 shares)  $30,000

Credit Share Premium Account for Additional Paid in Capital ($34 by 30,000) = $1,020,000

Explanation:

A stock dividend is payment to shareholders by the company in the form of additional shares rather than dividend payment.  This is common where the company is short of liquid funds to effect payment of dividends to its shareholders. They are usually issues in the form of fractions of existing holdings. Stock dividend increases the overall share holdings of the shareholder.

For Stock Dividend, the accounting entry is to transfer from the Retained Earnings to the Share Account and Share Premium or Additional Capital account.

The Share account is credited with the par value of the additional shares issued while the difference between the par value and the market value is credited to the Share Premium account. The full amount of the stock dividend is likewise debited to the Retained Earnings account.

7 0
3 years ago
Other questions:
  • Consider the following binomial experiment: a study in a certain community showed that 6% of the people suffer from insomnia. if
    15·1 answer
  • Generally, the ________ sample procedure for inferences about two population means provides better precision than the _______ sa
    14·1 answer
  • Sam has contracted with dave to purchase dave's racing bike, with payment and delivery of the bicycle to be in 10 days. three da
    9·1 answer
  • A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be
    6·1 answer
  • The Benesch Company expects sales in 2018 of 205,000 units of serving trays. Benesch​'s beginning inventory for 2018 is 18,000 ​
    6·1 answer
  • Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options avai
    6·1 answer
  • A campus deli serves 200 customers over its busy lunch period from 11:00 a.m. to 1:00 p.m. A quick count of the number of custom
    7·1 answer
  • What is the opportunity cost of studying for an important exam
    9·1 answer
  • Determine the monthly payment of a loan for $3,000 at 7. 5% interest compounded monthly for 36 months. A. $93. 32 b. $95. 40 c.
    9·1 answer
  • A company purchased a delivery van for $28,400 with a salvage value of $3,900 on september 1, year 1. it has an estimated useful
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!