Answer:
Total contribution margin= $1,220,000
Explanation:
Giving the following information:
Purchase price= $1.8
Selling price= $14
Number of untis= 100,000
<u>First, we will determine the unitary contribution margin:</u>
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 14 - 1.8
Unitary contribution margin= $12.2
<u>Now, the total contribution margin:</u>
Total contribution margin= 100,000*12.2
Total contribution margin= $1,220,000
Answer:
Correct option is B Yes and Yes
Yes - Compensating shall be reported, And Restricted shall also be reported.
Explanation:
Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.
Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.
Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.
Therefore correct option is B
Yes - Compensating shall be reported, And Restricted shall also be reported.
Answer:
See the explanation below for the basic EPS and diluted EPS
Explanation:
To calculate EPS we use the earnings of the company adjusted for any income for preferential shareholders. In this case there is no preference shareholders. Thus income attributable to ordinary shareholders is $ 420 000 (net income)
Average outstanding shares for BASIC eps calculation is 1500 000 shares.
BASIC EPS = 420/1500
= $ 0,28 per ordinary share
When calculating diluted EPS we include instruments that can potentially increase the number of shares and dilute net income. Thus we will include the 60,000 shares to executives that have a three year condition attached to them.
Diluted EPS = 420/(1500+60)
= $0,269
Answer: a) unfavorable direct labor price (rate) variance of $2,085.
Explanation:
The purpose of calculating variance is to see if a company is being efficient in it's production of goods and services or in it's general affairs. The variance is calculated by subtracting the actual amount that was used to do something from it's budgeted amount.
If the actual amount is higher then the Variance is said to be Unfavourable. The reverse holds true.
Calculating the Direct Labor price (rate) Variance will give us,
Direct Labor Price (rate) Variance = (Actual Price - Standard price)*Actual Hour
NB - Figures are given for 30 minutes so need to be converted.
Direct Labor Price (rate) Variance = (111,285/9,100 *2 - 115,200/9,600 * 2 ) * 9100/2
= $2,085
Actual Price (rate) variance was higher than Standard Price (rate) variance which led to an Unfavourable balance of $2,085
In economics, a factor market refers to markets where services of the factors of production are bought and sold, such as the labor markets, the capital market, the market for raw materials, and the market for management or entrepreneurial resources.
So I believe it is C
