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Tpy6a [65]
3 years ago
10

The marketing manager of TelCo., Inc. has determined that a market exists for a telephone with a sales price of $15 per unit. Th

e production manager suggests that the fixed cost of producing between 20,000 and 40,000 telephones is $65,000. Assume that Telco desires to earn a $50,000 profit from the phone sales. How much can TelCo afford to spend on variable cost per unit if production and sales equal 30,000 phones
Business
1 answer:
Korvikt [17]3 years ago
5 0

Answer: $11.17

Explanation:

Number of phones sold = 30000

Sales price = $15 per unit

We than calculate the total contribution required which will be:

= Total Fixed Cost + profit required

= $65000 + $50000

= $115,000

To calculate the variable cost per unit goes thus:

Number of phones sold = (Total Contribution Required)/(Sale Price - Variable cost per unit)

30000 = 115000/(15 - Variable cost per unit)

(15 - Variable cost per unit) = 115000/30000

(15 - Variable cost per unit) = 3.83

Variable cost per unit = 15 - 3.83 = 11.17

Variable cost per unit = $11.17

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Explanation:

5 0
3 years ago
Pal Corp.'s 2004 dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the d
VashaNatasha [74]

Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.

7 0
3 years ago
Activity-based costing (ABC) systems ________. A. Unselected have the same cost allocation system as plantwide and departmental
atroni [7]

Answer:

D. have separate cost allocation rates for each activity identified by the company CORRECT

There will be activity cost pool which, will be distribute among the product using different cost driver like machien hours, direct labor hours or other.

Explanation:

A. have the same cost allocation system as plantwide and departmental cost allocation systems

NO If it was, then it would not have a different name

B. have no cost allocation rates for each activity identified by the company

If we don't have rates to distrubte cost then, the allocation will be arbitrary

C. have combined cost allocation rates for each activity identified by the company

each should have different base cost driver if not, then they aren't different and should be combined.

4 0
3 years ago
Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was
Zina [86]

Answer:

Cash disbursements for insurance would be $ 168,700.

Explanation:

In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.

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8 0
3 years ago
Which of the following is a source that businesses use to develop standards:
ira [324]

Answer:

Suppliers

Explanation:

Suppliers are the main factor to achieve quality standards and to develop standards which lead to competitive advantage in the market. Business use suppliers to develop standards by hiring the best suppliers who give quality input or raw material. It’s all about making sure that your supplier is meeting the required standards and making sure they company with all the relevant laws.

4 0
3 years ago
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