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
Hot Shot Delivery Inc. provides the following year end data:
saw5 [17]

Answer:

27.3%

Explanation:

rate of retun on assets:

\frac{Income}{Assets} = $Assets rate of return

​where:

Net income:              112,000

2018 Assets:           410,000

\frac{112,000}{410,000} = $Assets rate of return

$Assets rate of return 0.2731707317073171‬ = 27.32%

During 2018 each dollar of assets generate 27.32 cents of income.

3 0
2 years ago
Kathleen Cole Inc. acquired the following assets in January of 2012. Equipment, estimated service life, 5 years; salvage value,
Lunna [17]

Answer:

1. Debit : Equipment Depreciation : $102000

Credit : Equipment Accumulated Depreciation : $102000

2. Debit : Building Depreciation account : $16857

Credit : Building Accumulated Depreciation : $16857

Explanation:

A change in accounting estimate occurs when there is new information that surfaces, affecting the initial situation. It can affect the carrying amount of an asset or liability as well as alter the accounting for existing and future assets or liabilities.

1. The equipment has a cost of $525000 and its depreciation was changed to using the straight line method after 3 years of use. Straight- line depreciation per year:

(Cost of asset - salvage value) / number of useful years.

The cost of asset and the number of useful years left would have to be found since the machine already depreciated using the sum-of-years-digits.

Number of useful years left : 5 - 3 = 2

Accumulated depreciation is required to find what the asset costs at the beginning of 2015.

Depreciation using sum-of-years-digits:

Sum-of-years-digits is an accelerated form of depreciation based on the assumption that an asset’s productivity reduces with time.

(Cost - Salvage value) x (remaining useful life of asset / sum of years digits)

Sum-of-years-digits = 1 + 2 + 3 + 4 + 5 = 15

Depreciation for 2012 :

($525000 - $15000) / (5/15) = $170000

Depreciation for 2013 :

($525000 - $15000) / (4/15) = $136000

Depreciation for 2014 :

($525000 - $15000) / (3/15) = $102000

Total depreciation: $102000 + $136000 + $170000 = $408000

Cost of asset at Jan 2015 = $525000 - $408000 = $117000

Thus, depreciation expense for 2015 = ($117000 - $15000) / 2 = $51000

Debit : Equipment Depreciation : $51000

Credit : Equipment Accumulated Depreciation : $51000

2. The building has a cost of $693000. It is depreciated using the straight-line method of depreciation. Hence, the depreciation expense is the same annually throughout the life of the asset.

Annual depreciation = (Cost of asset - salvage value) / number of useful years

Useful number of years was initially 30 years, later in 2015, it was changed to 40 years.

In order to find the depreciation for 2015, we need to find the cost of asset at the beginning of 2015 and the estimated useful life years left.

Estimated useful life years left : 40 - 3 = 37 years

Cost of asset :

To find this, we require the accumulated depreciation.

Depreciation for one year:

(693000 - 0) / 30 = $23100

$23100 x 3 = $69300 for 3 years

Cost of asset at the beginning of 2015 :

693000 - $69300 = $623700

This would mean that the depreciation expense for 2015 is:

($623700) / 37 = $16857

Debit : Building Depreciation account : $16857

Credit : Building Accumulated Depreciation : $16857

3 0
3 years ago
I have a one page report on a trianing plan describing the topics you would include in a customer focused listening workshop. I
bearhunter [10]

Answer:

Topic: Customer focused Listening Workshop

Explanation:

Begin with the introduction of who is a customer and the definition of terms or words like listening and focused.

Thereafter, highlight the various types or categories of customers and their various behaviors. Back it up with possible images or signs that represents their various behavioural pattern

Then proceed to explain the ways to listen to them and get them in order to get them to purchase or secure their loyalty to your product and services.

Also explain how glistening to a customer could have its pros and cons in terms of been positive and negative to your product and services.

Coin out a question such as 'How would you manage a customer with temperament, such that you must get him to patronize your product or services using the listening approach?'

Do a small group session to discuss the above question for about five minutes and make them to report back to the general house.

Take some moment to do a final summary, conclusion and recommendations before closing the workshop.

8 0
3 years ago
All of the following statements are true regarding earnings per common share (EPS) except:
SVEN [57.7K]

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares)  is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

8 0
3 years ago
Morganton Company makes one product and it provided the following information to help prepare the master budget:
yanalaym [24]

Answer:

Budgeted sales for July = $60*29000=$1740000

Expected Cash Collection :30%*1740000=$522000

Explanation:

Budgeted Cash sales for July =$6*29000=$1740000

Expected cash collection for July =70%(60*9800)+30%(1740000)

411,600+522,000=933,600

Account receivable at the end of July =70%*1740000 = $1,218,000.

Units produced in July = 80% * 29000+20%*31000 =29400

5) (10% * 124800 )+90%(4*29400)=12480+105840=118,320

6) 118320*2.5=$295,800

7)(70%*152,160)+(30%*295,800)=106512+88740=$192,252

8) 70%*29580$207,060

9)10%*124800=12,480

10)29400*2*15=$882,000

11)(29400*2*7)+882000=1,293,600/29400=$43.98

12)(20%*31000*2*15)+ (20%*31000*7)= 186000+43,400=229,400

13)Cost of goods sold = 1,293,600

Gross Margin =1,740,000-1,293,000=$447,000

14)68000+(1.8*29000)=$120,200

15) (29000*60)-(1,293,600) - (1.8*29000)-68,000=$326,800

3 0
3 years ago
Other questions:
  • Snow​ productions, inc. reports a balance of​ $28,000 in accounts receivable and​ $3,450 in the allowance for uncollectible acco
    10·1 answer
  • A team of men and women of different ethnic backgrounds, age, and physical capabilities work for a tv show which involves decora
    8·1 answer
  • Spring is here, and Ginny and her uncle would like to go fishing for the weekend in New Hampshire. Ginny could either go to the
    5·1 answer
  • What was one positive effect of economic globalization?
    13·2 answers
  • Which of the following is true of using direct marketing channels?
    8·1 answer
  • The VP of Marketing directs you to begin looking at markets for Powerfully Fit's products: "Assuming that we focus on the desire
    12·1 answer
  • A single server model with infinite calling population, first-come, first-served queue discipline, Poisson arrival rate and expo
    10·1 answer
  • Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in perma
    11·1 answer
  • On August 1, 20Y1, Newhouse Co. received $39,110 for the rent of land for 12 months. Journalize the adjusting entry required for
    13·1 answer
  • One of the reason why there's a need for human resource planning
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!