Answer:
$135,010
Explanation:
Duration
January
February
March
Expected Sales
41,000
38,000
50,000
Add: Ending Inventory
(21%×38,000) 7,980
(21%×50,000) 10,500
(21%×51,000) 10,710
Less:Beginning Inventory
4,700
7,980
10,500
Units to be Produce
(7,980-4,700)+41,000=44,280
(10,500-7,980)+38,000=40,520
(10,710-10,500)+50,000= 50,210
Quarter in Total $135,010
Answer:
b. Hire an external consultant to pick new team members for you.
Explanation:
The most appropriate option, analyzing the scenario above, would be to hire an external consultant to choose new team members for you, due to the fact that there is difficulty in choosing the qualification of the team and the volunteers who applied for the positions, so an external consultant could take this decision based on adequate parameters and less supported by biased behaviors that could favor some more volunteer by affinity or another issue that was not purely professional. In this way, a fairer, less conflicting and appropriate contracting would occur for everyone in the organization.
Answer: See explanation
Explanation:
a. inventory turnover ratio
This will be calculated as:
= Sales cost / Average inventory
= $67,596 / $9301.50
= 7.2672
= 7.27
(b) average days in inventory.
This will be calculated as:
= 365 days / Inventory turnover ratio
= 365 / 7.27
= 50.20
= 50 days
Note:
Average inventory = ($10,321 + $8,282) / 2 = $9301.50
Answer:
Overhead budget:
Variable overhead= 274,400
Fixed overhead= 180,000
Total overhead= $454,400
Explanation:
Giving the following information:
Production= 4,900 units
Each unit requires 5 hours of direct labor at a rate of $16 per hour.
Variable factory overhead is budgeted to be 70% of direct labor cost
Fixed factory overhead is $180,000 per month.
First, we need to determine the direct labor cost:
Direct labor cost= (4,900*5)*16= $392,000
Now, we can calculate the overhead budget:
Overhead budget:
Variable overhead= (0.7*392,000)= 274,400
Fixed overhead= 180,000
Total overhead= $454,400
Answer:
Effect : Increase in Break Even units by 3,750 units to 18,750 units
Explanation:
Break even point is the level of activity at which a firm makes neither a profit nor a loss
Break even Point (Units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Selling price per unit - Variable Costs per unit
= $12 - $8
= $4
Therefore,
<u>Before Increase</u>
Break even Point (Units) = $60,000 ÷ $4 = 15,000
<u>After Increase</u>
New Contribution = $12 - ($8× 1.10)
= $3.20
Therefore,
Break even Point (Units) = $60,000 ÷ $3.20 = 18,750
