Answer:
$21.65
Explanation:
The computation of the standard cost is shown below:
= Material cost + labor cost + factory overhead cost
where,
Material cost = 3 ÷ 4 × $5 per yard
= $3.75
Labor cost = 2 hours × $5.75 = $11.5
And, the factory overhead cost is
= $3.20 × 2 hours
= $6.4
So, the standard cost is
= $3.75 + $11.5 + $6.4
= $21.65
To achieve a target profit of $930,000, Softies' sales must be $1,520,000.
<h3>
What is target profit?</h3>
- Target profit is the amount of profit that a company's managers anticipate achieving by the conclusion of a specific accounting period.
- Typically, the target profit is established from the budgeting process and is compared to the actual result in the income statement.
- If they chose to earn a 20% margin on each sale, they will make a $50 profit on each chair sold.
- As a result, if the corporation wishes to make $50 per chair and sell the chair for $200, the chair must be manufactured for $150 or less.
To find the target profit of Softie, Inc.:
- Sales = ($240,400 + $930,000) ÷ 0.77
- = $1,520,000
Therefore, to achieve a target profit of $930,000, Softies' sales must be $1,520,000.
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Answer:
d. $197,418
Explanation:
Profitability index for this project = Present value of cash inflows / Present value of cash inflows
Profitability index for this project = 2.531*$78000 / $195000
Profitability index for this project = $197,418 / $195,000
Profitability index for this project = 1.0124
So, the net present value of this project is $197,418
Answer:
$1,840,000
Explanation:
The computation of the cash collected from customers is shown below:
Cash collected from customers = Cash sales + credit sales - increase in account receivable
= $500,000 + $1,400,000 - $60,000
= $1,900,000 - $60,000
= $1,840,000
By adding the cash sales, credit sales and deduct the increase in account receivable we can get the cash collected from customers and the same is shown above
