Question 6 of 22:

Select the correct answer.

GrogVix [38]

Answer:

A

Explanation:

trust me it is

7 0

3 years ago

A company uses the departmental overhead rate method. Total overhead costs are $5,000,000. Of this total, the machining departme

AleksAgata [21]

Answer:

Allocation rate Machining= $50 per machine hour

Explanation:

Giving the following information:

Estimated Machining cost= $4,000,000

Estimated Number of machine hours= 80,000

<u>To calculate the allocation rate for the Machining department, we need to use the following formula:</u>

Allocation rate Machining= total estimated costs for the period/ total amount of allocation base

Allocation rate Machining= 4,000,000 / 80,000

Allocation rate Machining= $50 per machine hour

4 0

3 years ago

TravelLite and FareLine compete as online travel agencies. Historically, TravelLite has focused more on flights, whereas FareLin

DENIUS [597]

Answer:

16.80% and 39.43%

Explanation:

The formula to compute the net profit margin is shown below:

Net profit margin = Net income ÷ Total revenues × 100

For Travel lite, the net profit margin is

= $1,080 ÷ $6,430 × 100

= 16.80%

And, for fare line, the net profit margin is

= $3,020 ÷ $7,660 × 100

= 39.43%

By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company

It is always expressed in percentage

6 0

3 years ago

If Sam's, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purch

Leni [432]

Answer:

Total Revenues would increase because Demand is Inelastic

Explanation:

Demand is buyers ability & willingness to buy at a given price, time.

Elasticity of Demand is quantity demanded responsiveness to price change.

More Elastic Demand means quantity demanded responds highly to change in price. Percentage Change in Quantity Demanded > Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] >1 in this case. Price and Total Revenue (PxQ) are inversely related in this case ; i.e - price rise, TR fall & price fall, TR rise.

Less Elastic Demand means quantity demanded responds less to change in price. Percentage Change in Quantity Demanded < Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] < 1 in this case. Price and Total Revenue (PxQ) are positively related in this case ; i.e - price rise, TR rise & price fall, TR fall.

So: If Sam's Pint price change by 20% leads to demand fall by 4%, the demand is less elastic i.e < 1. Hence, Total Revenue will increase with increase in price.

6 0

3 years ago

UP Forklifts sells two products, large forklifts and small forklifts. A large forklift sells for $ 80 comma 000 per unit with v

svlad2 [7]

Answer:

Break-even point (units)= 90 units

Explanation:

Giving the following information:

Large forklift:

Selling price= $80,000 per unit

Unitary variable cost= $26,000 per unit.

Small forklifts:

Selling price= $60,000 per unit

Unitary variable cost= $12,000 per unit.

Total fixed costs for the company are $4,455,000.

Sales proportion:

Large forklift= 0.25

Small forklift= 0.75

To calculate the break-even point in units, we need to use the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin= (0.25*80,000 + 0.75*60,000) - (0.25*26,000 + 0.75*12,000)

Weighted average contribution margin= 65,000 - 15,500= 49,500

Break-even point (units)= 4,455,000/ 49,500

Break-even point (units)= 90 units

5 0

3 years ago