Answer:
Organisations which are great at change management are constantly improving their ability to perform change, actively involving people, and integrating change into their cultures. These organisations achieve competitive advantage by performing change management better, faster, and with fewer resources than competitors.
Explanation:
cuz
Profit is the dollar amount a firm collects from its customers after selling its goods or services. True False
It is false that Profit is the dollar amount a firm collects from its customers after selling its goods or services.
What is profit?Profit refers to the surplus that comes after deducting cost from the revenue made. It is defined as gain, especially when achieved by increasing the price of goods.
The above means that the dollar value received after deducting cost from revenue made by a firm is termed profit.
Hence, profit is not the dollar amount a firm collects from its customers after selling its goods or services.
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What do major area of study mean
Answer:
the main area of study is the majoryou focus on to get your degree. It will be your core classes and/or the requirements needed to get your degree.
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:_________.
Manufacturing overhead costs incurred:
Indirect materials $ 15,400
Indirect labor 134,000
Property taxes, factory 8,400
Utilities, factory 74,000
Depreciation, factory 191,200
Insurance, factory 10,400
Total actual manufacturing overhead costs incurred $ 433,400
Other costs incurred:
Purchases of raw materials (both direct and indirect) $ 404,000
Direct labor cost $ 64,000
Inventories:
Raw materials, beginning $ 20,400
Raw materials, ending $ 30,400
Work in process, beginning $ 40,400
Work in process, ending $ 70,400
The company uses a predetermined overhead rate of $22 per machine-hour to apply overhead cost to jobs. A total of 20,100 machine-hours were used during the year.
Required:1. Compute the amount of underapplied or overapplied overhead cost for the year.2. Prepare a schedule of cost of goods manufactured for the year.
Answer:
1. Under-applied or over-applied overhead = Applied manufacturing overhead - Actual manufacturing overhead
Under-applied or over-applied overhead = $4334000 (120,100*$22) - 442,200 4
Over-applied manufacturing overhead = $8,800
2. Cost of Goods Manufactured Schedule
Particulars Amount$ Amount$
Beginning raw materials 20,400
Raw material purchases 402,000
Total raw material available 424,400
Ending raw materials (30,400)
Raw material consumed 394,000
Direct labor cost 62,000
Indirect material 15,400
Indirect labor 134,000
Depreciation-factory building 191,200
Utilities-Factory 74,000
Insurance, factory 10,000
Property taxes - Inventory 8,400
Total manufacturing cost 433,400
Add: Manufacturing Overhead applied 8,800
Manufacturing Overhead applied to WIP 442,200
Add: Beginning work in process 40,400
Less: Ending work in process (70,400)
Cost of goods manufactured $870,200
After learning that Baruch Inc. is performing very well in the lecture of BUS 2000, Akiko has directed her broker to buy 75 shares of Baruch Inc. at the best possible price available that day. These directions indicate that Akiko placed a ________ order with his broker.
The direction that Akiko placed with his broker to buy the stocks at the best possible price is a market order.
What is a market order?A market order is when a broker is given an instruction to buy or sell the stock of a particular company at the best available price. When there is a market order, the price at which the stock should be sold is not stated. The only instruction is that the stock should be sold.
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Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage Chillmax Company had planned to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 3,500 units sold is $58,500. The degree of operating leverage is 2.3. Now Chillmax expects to increase sales by 10% next year.
Required:
1. Calculate the percent change in operating income expected.
_______%
2. Calculate the operating income expected next year using the percent change in operating income calculated in Requirement 1.
Answer:
1. Degree of Operating Level = %Δ in EBIT / %Δ in sales
2.3 = %Δ in EBIT / 10
%Δ in EBIT = 2.3*10
%Δ in EBIT = 23
Hence, the percentage change in EBIT is 23%
2. Operating Income Expected = Operating Income * (1+%Δ in EBIT)
Operating Income Expected = $58,500 *(1+23%)
Operating Income Expected = $58,500 *1.23
Operating Income Expected = $71,955
A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?
Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.
Why is this the correct entry?The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.
The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.
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Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $73 to buy from farmers and $17 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $30 or processed further for $20 to make the end product, industrial fiber that is sold for $50. The beet juice can be sold as is for $49 or processed further for $27 to make the end product, refined sugar that is sold for $98. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar
Answer:
$11
Explanation:
Calculation for how much more profit (loss) that the company make.
Combined final sales value $148
($50+ $98)
Less: costs of producing the end products
Cost of sugar beets ($73)
Cost of crushing ($17)
Combined costs of further processing ($47)
($20+ $27)
Total costs of producing the end products ($137)
Profit (loss) $ 11
($148-$137)
Therefore how much more profit (loss) that the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar will be $11
BKK Corporation sells headphones with a unit selling price of $200 and a contribution margin ratio of 40%. Unit variable costs are expected to increase $10 next year with no change to the unit selling price. Calculate the new contribution margin ratio.
Based on the selling price and the variable costs, the new contribution margin ratio would be 35%.
What would be the new contribution margin ratio?First find the new contribution margin which is:
= Selling price - Variable cost
Solving gives:
= 200 - ( (60% x 200) + 10)
= 200 - (120 +10)
= $70
The contribution margin ratio will be:
= Contribution margin / Selling price
= 70/ 200
= 35%
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Helen expects to receive $2000 in six months. Her bank offers a loan at an annual rate of 5.60%. How much could se borrow now if she wants to pa off the entire loan (incuding interest) with the $2000 she will receive in six months?
Answer: 5000
Explanation: ITS MATH
Helen expects to receive $2000 in six months. Her bank offers a loan at an annual rate of 5.60%. She could se borrow $5000 now if she wants to pay off the entire loan (including interest) with the $2000 she will receive in six months
What is a Bank?A bank is an institution that deals in money and its substitutes and provides other money-related services. In its role as a financial intermediary, a bank accepts deposits and makes loans.
It derives a profit from the difference between the costs (including interest payments) of attracting and servicing deposits and the income it receives through interest charged to borrowers or earned through securities.
Many banks provide related services such as financial management and products such as mutual funds and credit cards. Some bank liabilities also serve as money—that is, as generally accepted means of payment and exchange.
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IMC, Inc. needs to schedule production of a certain item for the next four months. The unit cost is estimated to be $12 for the first two months and $14 for the last two months. From the company’s forecasting models, monthly demands are estimated to be 400, 750, 950, and 900 units, respectively. IMC can produce a maximum of 850 units each month on regular time. Overtime can be scheduled during the second and third months, which increases monthly capacity by 200 units. However, units produced on overtime cost $4 more to produce. Excess production can be stored at a cost of $3 per unit per month, but a maximum of 50 units can be stored during any month. Assuming that beginning and ending inventory levels are zero, how should the production be scheduled so as to minimize total costs?
Answer:
The correct answer will be "$40,450".
Explanation:
According to the estimation given in the scenario,
The monthly demands are:
400 units750 units950 units900 unitsSo, the total cost will be:
⇒ [tex](400\times 12) + (750\times 12) + (850\times 14) + (150\times 18) + (50\times 3) + (850\times 14)[/tex]
⇒ [tex]4800 + 9000 + 11900 + 2700 + 150 + 11900[/tex]
⇒ [tex]40,450[/tex] ($)
Megan Company (not a corporation) was careless about its financial records during its first year of operations, 2017. It is December 31, 2017, the end of the annual accounting period. An outside CPA has examined the records and discovered numerous errors, all of which are described here. Assume that each error is independent of the others.
Required:
Analyze each error and indicate its effect on 2017 and 2018 net income, assets, and liabilities if not corrected. Do not assume any other errors. Use these codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect. The first transaction is used as an example.
1. Depreciation expense for 2013, not recorded in 2013, $950.
2. Wages earned by employees during 2013 not recorded or paid in 2013 but recorded and paid in 2014, $500.
3. Revenue earned during 2013 but not or recorded until 2014, $600.
4. Amount paid in 2013 and recorded as expense in 2013 but not an expense until 2014, $200.
5. Revenue collected in 2013 and recorded as revenue in 2013 but not earned until 2014,$900.
6. Sale of services and cash collected in 2013. Recorded as a &bit to Cash and as a credit
to Accounts Receivable, $300.
7. On December 31, land on credit for not recorded until payment was made on February l, 2014.
Answer:
Megan Company
Analysis of Error and Indication of its effect on 2013 and 2014 Net Income, Assets, and Liabilities:
Net Income Assets Liabilities
2013 2014 2013 2014 2013 2014
1. O O
2. O U U
3. U O U
4. O U U
5. O U U
6. U O
7. U U
Explanation:
a) Data and Calculations:
Codes to indicate the effect of each dollar amount: O = overstated, U = understated, and NE = no effect.
The overstatement of Net Income happens when an expense incurred is not recorded in the affected period or a revenue not earned is recognized in the wrong period. For instance, when depreciation expense for 2013 is not recorded in 2013, the net income is overstated. We cannot assume that the error is corrected in 2014, according to this question.
Evelyn decides to open a business selling her one-of-a-kind cupcakes. Evelyn will be the sole owner of the business, although she will have a few employees. Evelyn plans to operate the business under the name "Cupcake Dreams." To legally operate her business, Evelyn will need to: ___________
a. register her business name.
b. file an operating agreement.
c. file a certificate of organization
For Evelyn to legally operate her business, Evelyn will need to register her business name.
What is advantage of registering business name?Registering business name as a business owner is very crucial to operate legally, and this will help the business to be able to secure loan from the government incase there is need for it.
Therefore, Evelyn as a sole owner of the business, will be able to operate her business legally.
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The accounting records of Concord Corporation show the following data. Beginning inventory 2,820 units at $7 Purchases 8,120 units at $9 Sales 9,838 units at $12 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter Average unit cost in dollars rounded to 3 decimal places per unit eTextbook and Media List of Accounts Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places
Answer:
1. $82,902
2. $85,106
3. $8.48 per unit
4. $83,426
Explanation:
Calculation to Determine cost of goods sold using the FIFO method, the LIFO method, and the average-cost method
1. With FIFO Method the Purchases that was made earlier will be sold first.
Cost of goods sold = (2,820 x $7) + (7,018x $9)
(2,820-9,838=7,018)
Cost of goods sold= $19,740+ $63,162
Cost of goods sold= $82,902
2. With LIFO Method Purchases that are made last will be sold first.
Cost of goods sold = (8,120 x $9) + (1,718 x $7)
(8,120-9,838=1,718)
Cost of goods sold= $73,080 + $12,026
Cost of goods sold = $85,106
3. Using Average cost method
Average cost per unit = [(2,820 x $7) + (8,120 x $9)]/(2,820 + 8,120)
Average cost per unit=$19,740+$73,080/10,940
Average cost per unit= $92,820/10,940
Average cost per unit=$8.48 per unit
4. Cost of goods sold = 9,838 x $8.48
Cost of goods sold= $83,426
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $39,590 and $3,020, respectively. During the year, the company wrote off $2,390 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of Days Receivables Percentage Likely to Be Past Due Amount Uncollectible Current $ 56,000 1% 0 to 30 23,500 5% 31 to 60 5,360 10% 61 to 90 2,520 25% Over 90 2,200 50% Total $89,580 What will Domino record as Uncollectible Accounts Expense for Year 2
Answer:
Number of days past due Receivables %Uncollectible Uncollectible
Current 56,000 1% 560
0 to 30 23,500 5% 1,175
31 to 60 5,360 10% 536
61 to 90 2,520 25% 630
Over 90 2,200 50% 1,100
Total 89,580 4,001
Uncollectible Amount = 4,001 - Allowance after write off
Allowance after write off = Opening Allowance - Amount written off during year
= 3,020 - 2,390
= $630
Uncollectible Amount = 4,001 - 630
= $3,371A manufacturer has identified the options for acquiring a machined part. It can make the part on a standard lathe for $250 per unit (including materials). It can make the part on a numerically controlled lathe for $150 per unit (including materials). It can make the part on a machining center for $50 per unit (also including materials). The manufacturer can acquire a standard lathe for $10,000. It could acquire a numerically controlled lathe for $100,000. A machining center would cost $350,000. It has also found that it can purchase the part for $350 per unit. If the demand is 750 units, which method should be used
Answer:
From the analysis below, the cheapest option is option 2 which is to produce the machine part at $263.33 per unit using using standard lathe. Therefore, the method that should be used is to make the part on a standard lathe.
Explanation:
This can be determined by comparing the total cost per unit of the machine part of each of the options and select the lowest as follows:
Option 1: Purchase of the part
Total cost per unit if purchase = $350
Option 2: Total cost per unit using standard lathe
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of making the part on standard lathe = $250 per unit
Acquisition cost of a standard lathe = $10,000
Acquisition cost per unit of a standard lathe = Acquisition cost of a standard lathe / Demand = $10,000 / 750 = $13.33
Total cost per unit of standard lathe = Cost per unit (including materials) of making the part on standard lathe + Acquisition cost per unit of a standard lathe = $250 + $13.33 = $263.33 per unit
Option 3: Total cost per unit using numerically controlled lathe
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of using numerically controlled lathe = $150 per unit
Acquisition cost of a numerically controlled lathe = $100,000
Acquisition cost per unit of a numerically controlled lathe = Acquisition cost of a using numerically controlled lathe / Demand = $100,000 / 750 = $133.33
Total cost per unit of numerically controlled lathe = Cost per unit (including materials) of using numerically controlled lathe + Acquisition cost per unit of a numerically controlled lathe = $150 + $133.33 = $283.33 per unit
Option 4: Total cost per unit using machining center
This can be calculated as follows:
Demand = 750 units
Cost per unit (including materials) of using machining center = $50 per unit
Acquisition cost of a machining center = $350,000
Acquisition cost per unit of a machining center = Acquisition cost of a using machining center / Demand = $350,000 / 750 = $466.67
Total cost per unit of machining center = Cost per unit (including materials) of using machining center + Acquisition cost per unit of a machining center = $50 + $466.67 = $516.67 per unit
Conclusion
From the above, the cheapest option is option 2 which is to produce the machine part at $263.33 per unit using using standard lathe. Therefore, the method that should be used is to make the part on a standard lathe.
A machine with a cost of $85,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 20,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?
The amount of depreciation for the second full year, using the double-declining-balance method is $20,400.
What is the amount of depreciation in the second year?Depreciation is a method used in expensing the value of an asset.
Double declining depreciation expense = [2 x (1/useful life of the asset)] x cost of the asset
Depreciation expense in year 1 = 2/5 x $85,000 = $34,000
Book value at the beginning of year 2 = $85,000 - $34,000 = $51,000
Depreciation expense in year 2 = 2/5 x $51,000 = $20,400
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how to write a business report
Answer:
A business report typically includes four major parts: introduction, discussion, conclusions, and recommendations. Sometimes, it may also include an executive summary, as well as a covering memo or letter.
Explanation:
Answer:
Explanation:when you write it make sure you have good grammar make sure you has enough periods and don’t go off topic.
Your coin collection contains 53 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2059, assuming they appreciate at an annual rate of 6 percent?
Answer:
Value of collection = $16,652.38
Explanation:
The compound interest formula is:
[tex]A = P [ 1 + \frac{r}{n} ] ^{nt}[/tex]
were,
P is the principal, which is $95 since that is the original value of 95 silver dollars purchased for $1 each.
r is the interest rate of 4.9%, expressed as 0.049
n is the number of times interest compounds each year, which is 1
t is the number of years the money is invested, which is 108 because we are calculating the gain between 1952 and 2060
Plug that in, and we get:
[tex]A = 95 [ 1 + \frac{0.049}{1} ]^{180}[/tex]
[tex]A = 95 (1.049)^{180}[/tex]
A = 95 × 175.2882
A = $16,652.38
Therefore,
Value of collection = $16,652.38
Hope it helps!!!brainliest pls!!!One of the major problems that led to the financial
crisis was the “housing bubble.” What is meant by this
term?
Answer:
A housing bubble a sustained but temporary condition of over-valued prices and rampant speculation in housing markets. The U.S. experienced a major housing bubble in the 2000s caused by inflows of money into housing markets, loose lending conditions, and government policy to promote home-ownership.
How is savings account most useful?
A. For saving for a long time without withdrawing
B.For depositing and withdrawing money frequently
C.For using money for CDs and other investments
D. For using money in the near future but not right away
Answer:
I believe it is D. Sorry if it’s wrong.
Explanation:
The whole point of having a savings account is saving money so you can use it in the future. Hope this helps!
Answer:
D. for using money in the near future but not right away
Explanation:
2022 EDG
Presented below is information from Blossom Computers Incorporated. July 1 Sold $21,200 of computers to Robertson Company with terms 3/15, n/60. Blossom uses the gross method to record cash discounts. Blossom estimates allowances of $1,378 will be honored on these sales. 10 Blossom received payment from Robertson for the full amount owed from the July transactions. 17 Sold $212,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Blossom for its purchase of July 17. Prepare the necessary journal entries for Blossom Computers.
Answer and Explanation:
The Journal entries are shown below:-
1. Accounts receivable Dr, $21,200
To Sales revenue $21,200
(Being sales revenue is recorded)
2. Sales return and allowances Dr, $1,378
To Allowance for sales return and allowances $1,378
(Being allowance for sales return is recorded)
3. Cash Dr, $20,564
Sales discount Dr, $636 ($21,200 × 3%)
To Accounts receivable $21,200
(Being receipt and discount allowed is recorded)
4. Account receivable Dr, $212,000
To Sales revenue $212,000
(Being sales revenue is recorded)
5. Cash Dr, $212,000
To Accounts receivable $212,000
(Being receipt of payment is recorded)
List TWO consequences for a company if they receive a qualified audit opinion
An insurance policy is most useful as a way to what?
Answer: c. protect against the cost of unexpected events
Explanation: everyone has a time but funeral costs and other cost can really cost a lot so you get life insurance too save money so if you die that money can be used for funeral costs etc
George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2020, George began working in London (for a total of 214 days in 2020). He worked there until January 31, 2021, when he transferred to Paris. He worked in Paris the remainder of 2021. His salary for the first five months of 2020 was $100,000, and it was earned in the United States. His salary for the remainder of 2020 was $175,000, and it was earned in London. George's 2021 salary from Hawk was $300,000, with part being earned in London and part being earned in Paris. Assume the 2021 indexed amount is the same as the 2020 indexed amount. Assume 366 days in 2020 (a leap year) and 365 days in 2021.
Required:
Determine George's gross income in 2020 and 2021
Answer:
2020 = $212,086
2021 = $192,400
Explanation:
To determine George's gross income in 2020 and 2021 we need to calculate the amount that george can exclude from the gross income for both years.
George's gross income in 2020
George can exclude amount from his gross income = $107,600 x 214/366 (Lower of foriegn earned income $275,000 or foriegn earned income exclusion ceiling of $107,600 for 2020)
George can exclude amount from his gross income = $62,914
Therefore
George's gross income in 2020 = $275,000 - $62,914 ($100,000 + $175,000)
George's gross income in 2020 = $212,086
George's gross income in 2021
George can exclude the amount from his gross income = $107,600 x 365/365 (Lower of foreign earned income of $300,000 or foreign earned income exclusion ceiling of $107,600 for 2021)
George can exclude the amount from his gross income = $107,600
Therefore
george's income in 2021 = $300,000 - $107,600
george's income in 2021 = $192,400
Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:________
a. function b. size c. geography d. customer e. product
The form of departmentization praticed by Kohber is departmentization by function.
What is departmentization?
Departmentization is when a company is divided into various departments based on certain criteria. When a company is departmentized based on function, it means that the company's department are created based on the functions it serves.
For example, there would be the marketing department, packaging department and production department.
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Define marginal product and give example
Answer:
the marginal product or marginal physical productivity of an input is the change in output resulting from employing one more unit of a particular input, assuming that the quantities of other inputs are kept constant.
For example, marginal product may be the increased number of products produced with the addition of one extra worker on a production line. Marginal product increases may also be attributed to other input factors besides labor.
Explanation:
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To compose simple messages, you may need only to make a scratch list of your ideas before writing. Many messages, however, may require you to make an outline to organize your thoughts.
Use the scratch list to answer the question that follows.
The Boston Hotel
High-end linens
600-thread-count sheets
Coffee maker with selected teas
Imported beer
Fresh-squeezed juices
Affordability
Food and drink
Double-thick bath towels
Silk pillowcases
Raw silk curtains with gold embellishments
$100/night four-star rooms
Free snacks, shampoo, and conditioner
Free wireless Internet
You have been asked to organize the items on the scratch list into an outline for your supervisor. You have completed the outline when your supervisor sends you a quick e-mail with the additional scratch list that follows. Your supervisor wants you to include the items on the new scratch list that fit into your existing outline.
Evening wine tasting
Sparkling water
Safety
Communication
Four-star hotel restaurant
Cleanliness
Proximity to downtown shopping
Indoor pool
Which subpoints should you include in your outline?
a. [removed]Sparkling water, evening wine tasting, four-star hotel restaurant
b. [removed]Safety, indoor pool, proximity to downtown shopping
c. [removed]Safety, communication, cleanliness
Answer:
The sub-points that I should include in the outline are:
c. Safety, communication, cleanliness
Explanation:
Free wireless internet will aid communication. Cleanliness is important for high-end linens, double-thick bath towels, silk pillowcases, Raw silk curtains with gold embellishments, etc. In the same way, safety consideration is important for any hotel with four-star rooms, serving imported beer, fresh-squeezed juices, food and drink, etc. both in their preparation and ultimately in serving them to guests.
2. Cost-plus, target pricing, working backward A-Plus Shed, Inc., manufactures and sells a do-it-yourself storage shed kit. In 2012, it reported the following: Units produced and sold 4,000 Investment $ 2,300,000 Markup percentage on full cost 5 % Rate of return on investment 20 % Variable cost per unit $ 500 1. What was A−Plus Shed's operating income in 2012? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost? 2. A−Plus Shed is considering increasing the annual spending on advertising by $110,000. The managers believe that the investment will translate into a 15% increase in unit sales. Should the company make the investment? Show your calculations. 3. Refer back to the original data. In 2013, A−Plus Shed believes that it will only be able to sell 3,500 units at the price calculated in requirement 1. Management has identified $100,000 in fixed cost that can be eliminated. If A−Plus Shed wants to maintain an 5% markup on full cost, what is the target variable cost per unit?
Answer:
1. A-Plus shed's operating income in 2012 = $460,000
1i Full cost per unit = $2,300
1ii Selling price = $2,415
1iii Mark up percentage on variable cost = $23%
2. Yes, the company should make the investment. This is because by expending $110,000 on advertising, it will increase the operating income by $1,039,000 .
3. Target variable cost per unit = $2,028.57
Explanation:
Please find attached detailed explanations of the above answers.
Suppose the marginal propensity to save (MPS) is equal to 0.25. According to the text, a $100 increase in investment spending will lead to a:
Based on the marginal propensity to save and the increase in investment spending, there will be an increase of $400 in equilibrium income.
What will be the change in Equilibrium income?This can be found as:
= Change in investment spending x Multiplier
Multiplier is:
= 1 / Marginal propensity to save
= 1 / 0.25
= 4
Change in equi. income is:
= 100 x 4
= $400
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The local Target store sells a variety of Dyson vacuum cleaners. A particularly popular model is the DC22, which costs Target $275 per unit. The annual holding cost per vacuum is 10% of this cost. Demand for the DC22 is relatively constant, but experiences some fluctuations from day to day. Average daily demand for the DC22 is normally distributed with an average of 5 units and a standard deviation of 2 units (and Target is open 365 days a year). When Target places an order of DC22s from its warehouse, the order arrives 3 days later. The fixed ordering cost is $10, regardless of how many DC22s are ordered. Target is willing to tolerate a 1% chance of stockout on any one order cycle. Target would like to use a continuous review inventory model. What is the reorder point (including safety stock)
Answer:
24 units
Explanation:
safety stock = z-score 99% x √lead time x standard deviation of demand
safety stock = 2.576 x √3 x 2 = 8.92 units ≈ 9 units
reorder point = lead time demand + safety stock
lead time demand = 3 days x 5 = 15 units
reorder point = 15 + 9 = 24 units