Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation.
Cheryl: "Wes, I'm not sure how to go about answering the questions that came up at the meeting with the President yesterday."
Wes: "What's the problem?".
Cheryl: "The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out."
Wes: "I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00."
Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:
Normal annual sales volume
Velcro = 100,000 units
Metal = 200,000 units
Nylon = 400,000 units
Unit selling price
Velcro = $1.65
Metal = $1.50
Nylon = $0.85
Variable cost per unit
Velcro = $1.25
Metal = $0.70
Nylon = $0.25
Total fixed expenses are $400,000 per year.
All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.
The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories.
Using the module readings, the Argosy University online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course.
Respond to the following:
Calculate the company's overall break-even point in total sales dollars. Explain your methodology (approximately 2 pages).
Of the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages):
Calculate the break-even point in units for each product. Explain your methodology.
Determine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results. Evaluate costing systems for this company. Explain if this company should be using a job-order or process-costing system to accumulate costs (1 page).
Answers
The overall break-even point in total sales dollars is:$1,650,000 + $750,000 + $566,667 = $2,966,667
The company's overall profit will be:$1,200,000 - $400,000 = $800,000.
The break-even point (BEP) is the sales volume that ensures that the company earns no profit or loss; the point where the revenue from sales equals the total costs. To calculate the break-even point, we need the following formula:Break-even point in unit sales = Fixed costs / (Price – Variable costs).
Break-even point in total sales dollars = Break-even point in unit sales x Unit selling price Where Fixed costs are the total of all the expenses that are not related to the production or the sales of the product. In this case, the total fixed expenses are $400,000 per year.
We can find out the unit selling price and variable cost per unit for each product from the data provided in the question. We can use the given formula to calculate the break-even point in unit sales for each product and then use it to find out the break-even point in total sales dollars.
Calculation of break-even point for each product:Velcro = $400,000 / ($1.65 - $1.25) = 400,000 / 0.4 = 1,000,000 unitsMetal = $400,000 / ($1.50 - $0.70) = 400,000 / 0.8 = 500,000 unitsNylon = $400,000 / ($0.85 - $0.25) = 400,000 / 0.6 = 666,667 units
Now, we can find out the break-even point in total sales dollars for each product:Velcro = 1,000,000 units x $1.65 = $1,650,000 Metal = 500,000 units x $1.50 = $750,000Nylon = 666,667 units x $0.85 = $566,667.The company's overall break-even point in total sales dollars is the sum of the break-even point in total sales dollars for each product.
Therefore, the overall break-even point in total sales dollars is:$1,650,000 + $750,000 + $566,667 = $2,966,667.
To calculate the break-even point for each product, we need the following formula:Break-even point for each product = Fixed cost - Avoidable fixed cost / (Price - Variable cost)We are given that:Total fixed costs = $400,000.
If the Velcro product is dropped, then fixed costs will decrease by $20,000. If the Metal product is dropped, then fixed costs will decrease by $80,000. If the Nylon product is dropped, then fixed costs will decrease by $60,000. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.
Using the above formula, we can calculate the break-even point for each product:Velcro: ($400,000 - $20,000) / ($1.65 - $1.25) = 240,000 unitsMetal: ($400,000 - $80,000) / ($1.50 - $0.70) = 400,000 unitsNylon: ($400,000 - $60,000) / ($0.85 - $0.25) = 571,429 unitsTo calculate the overall profit of the company if the company sells exactly the break-even quantity of each product, we need to calculate the contribution margin per unit.
The contribution margin per unit is the difference between the unit selling price and the variable cost per unit. We can use the following formula:Contribution margin per unit = Price – Variable cost per unitVelcro: $1.65 - $1.25 = $0.40Metal: $1.50 - $0.70 = $0.80Nylon: $0.85 - $0.25 = $0.60.
Now, we can calculate the overall profit of the company if the company sells exactly the break-even quantity of each product. The total revenue generated will be:$1.65 x 1,000,000 units = $1,650,000 for Velcro$1.50 x 500,000 units = $750,000 for Metal$0.85 x 666,667 units = $566,667 for Nylon.
The total revenue will be:$1,650,000 + $750,000 + $566,667 = $2,966,667.The total variable costs will be:$1.25 x 1,000,000 units = $1,250,000 for Velcro$0.70 x 500,000 units = $350,000 for Metal $0.25 x 666,667 units = $166,667 for NylonThe total variable cost will be:$1,250,000 + $350,000 + $166,667 = $1,766,667.
The total contribution margin will be:$0.40 x 1,000,000 units = $400,000 for Velcro$0.80 x 500,000 units = $400,000 for Metal$0.60 x 666,667 units = $400,000 for Nylon.
The total contribution margin will be:$400,000 + $400,000 + $400,000 = $1,200,000.The total fixed cost is $400,000. Therefore, the company's overall profit will be:$1,200,000 - $400,000 = $800,000.
The company should use a process-costing system to accumulate costs since it is a mass production company, and the products produced are almost identical. The process-costing system is more suitable for the companies which produce similar products, and the cost is allocated to each department and process.
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Related Questions
rolling company bonds have a coupon rate of 5.20 percent, 20 years to maturity, and a current price of $1,146. what is the ytm? the current yield?
Answers
To calculate the yield to maturity (YTM) of Rolling Company bonds, we need to solve for the discount rate that equates the present value of the bond's future cash flows to its current price. the YTM of Rolling Company bonds is approximately 3.29%, and the current yield is approximately 4.53%.
Assume a YTM rate and calculate the present value of the bond's cash flows using the present value formula:
\(PV = C/(1+r)^1 + C/(1+r)^2 + ... + C/(1+r)^n + F/(1+r)^n\)
where:
C = coupon payment = 5.20% x $1,000 = $52
r = YTM rate
n = number of periods = 20 years x 2 semi-annual periods per year = 40
F = face value = $1,000
Using a YTM rate of 4%, we get:
PV = $52/\((1+4)^1 + $52/(1+4)^2 + ... + $52/(1+4)^40 + $1,000/(1+4)^40\)
PV = $1,288.94
Compare the calculated present value with the bond's current price of $1,146. If the calculated present value is higher than the current price, we need to use a lower YTM rate. If the calculated present value is lower than the current price, we need to use a higher YTM rate.
In this case, the calculated present value of $1,288.94 is higher than the bond's current price of $1,146, so we need to use a lower YTM rate.
Repeat step 1 and step 2 with a new YTM rate. We can use a lower YTM rate if the calculated present value is higher than the current price, or a higher YTM rate if the calculated present value is lower than the current price.
Using an iterative process, we find that the YTM of Rolling Company bonds is approximately 3.29%.
To calculate the current yield, we divide the annual coupon payment by the bond's current price:
Current yield = Annual coupon payment / Current price
Current yield = $52 / $1,146
Current yield = 4.53%
Therefore, the YTM of Rolling Company bonds is approximately 3.29%, and the current yield is approximately 4.53%.
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3. Economic historian Angus Maddison estimates that real GDP per capita in Western Europe in 1000 AD was $450. Restate this number as GDP per capita per day. (Assume that there are 365 days in 1000 AD. Round to two decimal places.
4. If GDP growth per capita in Europe was a steady 1% per year from 0 AD to 1000 AD, what would your estimate of GDP per capita per day be in 0 AD, based off Maddison’s estimate for 1000 AD? (Round to 7 decimal places)
5. In fact, Maddison estimates GDP per capita in Western Europe is $576 in 0 AD and $450 in 500 AD. What does he estimate to be the annual growth rate of GDP per capita between 0 AD and 500 AD in Western Europe? (Round to three decimal places.)
6.City A has a GDP per capita of $450 in AD 1000. They build a university in AD 1000. Each year since then, a genius in the university comes up with a new idea that increases GDP per capita by 0.5%. This is the only source of growth. What is GDP per capita in AD 1030? (Round to two decimal places)
7.Suppose that unable to keep ideas in print, each idea is forgotten after 30 years. New ideas keep being generated at a rate of one per year. Once an idea is forgotten, the GDP reverts back to what it was with one less idea. What is GDP per capita in AD 1450? (Hint: Think of how many ideas are being used every year)
8. In AD 1450 the printing press is invented and ideas are no longer forgotten after 30 years. What is GDP per capita in AD 2019? (Use your answer from the previous question for GDP per capita in 1450)
9. How much bigger is GDP per capita in 2019 relative to the alternative universe in which the printing press had never been invented?
Answers
3. To restate the GDP per capita in Western Europe in 1000 AD as GDP per capita per day, we divide the GDP per capita by the number of days in a year: GDP per capita in AD 2019 = $457
GDP per capita per day = GDP per capita / Number of days
GDP per capita per day = $450 / 365 ≈ $1.23 (rounded to two decimal places)
4. If GDP growth per capita in Europe was a steady 1% per year from 0 AD to 1000 AD, we can estimate the GDP per capita per day in 0 AD based on Maddison's estimate for 1000 AD:
GDP per capita per day in 0 AD = GDP per capita per day in 1000 AD / (1 + Growth rate)^(Number of years)
GDP per capita per day in 0 AD = $1.23 / (1 + 0.01)^(1000) ≈ $0.0000018 (rounded to 7 decimal places)
5. To calculate the annual growth rate of GDP per capita between 0 AD and 500 AD in Western Europe, we can use the formula:
Annual growth rate = (GDP per capita in 500 AD / GDP per capita in 0 AD)^(1 / Number of years) - 1
Annual growth rate = ($450 / $576)^(1 / 500) - 1 ≈ -0.004 (rounded to three decimal places)
Therefore, the estimated annual growth rate of GDP per capita between 0 AD and 500 AD in Western Europe is approximately -0.004 or -0.4%.
6. If City A has a GDP per capita of $450 in AD 1000 and each year since then, a genius in the university comes up with a new idea that increases GDP per capita by 0.5%, we can calculate the GDP per capita in AD 1030:
GDP per capita in AD 1030 = GDP per capita in AD 1000 * (1 + Idea growth rate)^(Number of years)
GDP per capita in AD 1030 = $450 * (1 + 0.005)^(30) ≈ $505.49 (rounded to two decimal places)
Therefore, the GDP per capita in AD 1030 in City A would be approximately $505.49.
7. If ideas are forgotten after 30 years and new ideas keep being generated at a rate of one per year, we can calculate the GDP per capita in AD 1450:
Number of ideas in AD 1450 = Number of years since AD 1000 - Number of ideas forgotten
Number of ideas in AD 1450 = 1450 - (1450 - 1000)/30
Number of ideas in AD 1450 = 1450 - 15 ≈ 1435
GDP per capita in AD 1450 = GDP per capita in AD 1000 + (Number of ideas * Idea growth rate)
GDP per capita in AD 1450 = $450 + (1435 * 0.005) ≈ $457.18 (rounded to two decimal places)
Therefore, the GDP per capita in AD 1450 would be approximately $457.18.
8. If the printing press is invented in AD 1450 and ideas are no longer forgotten after 30 years, we can use the GDP per capita in AD 1450 as the starting point to calculate the GDP per capita in AD 2019:
GDP per capita in AD 2019 = GDP per capita in AD 1450 * (1 + Idea growth rate)^(Number of years)
GDP per capita in AD 2019 = $457
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what are the three different kinds of ads?
Answers
Answer:
His three types of ad include Direct Response Ads, Trust Ads and Demand Enhancement Ads.
Explanation:
Go to google
Which of the following symptoms is NOT associated with an allergic reaction?
Trouble breathing
Anxiety
OOO
Fainting
Screaming
Answers
When one is having an allergic reaction to something, one symptom that is not expected is Screaming.
An allergic reaction usually leads to the following:
Person has trouble breathing Person develops anxiety Person might faintIt is not a usual thing that a person will scream as a result of an allergic reaction.
We can therefore conclude that screaming is not associated with allergic reactions.
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To be part of the supply for a good, a producer must be?
Answers
Answer:
produce good and healthy food.
no harmful chemical should be added.
using organic materials.
serious about other help.
Mark, a property owner, signed an agency agreement with andrew, a real estate broker, to sell his house. what type of agency was created between mark and andrew...?
Answers
The type of agency created between Mark and Andrew is a "special agency." This means that Mark cannot hire any other brokers to sell his house during the specified period.
In a special agency, the agent (Andrew, the real estate broker) is given limited authority to act on behalf of the principal (Mark, the property owner) for a specific purpose or transaction, which in this case is to sell Mark's house.
In a special agency, the agent has authority to perform specific tasks related to the agreed-upon purpose, such as listing the property for sale, marketing it, showing it to potential buyers, and negotiating offers. However, the agent does not have the authority to make decisions or enter into contracts on behalf of the principal without their explicit consent.
To illustrate this, let's say Mark signed an exclusive agency agreement with Andrew. This means that Mark cannot hire any other brokers to sell his house during the specified period. However, if Mark finds a buyer for his house on his own, without Andrew's involvement, he is not obligated to pay a commission to Andrew since the agreement only grants Andrew the authority to sell the property.
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What does the video cite as the biggest complaint about Nozick's Rights Theory? a. It allows decision-makers to disregard the interests of other people. b. The theory allows individuals to live as hermits, without force or fraud. c. It allows people to threaten others with physical force as long as they do not actually use it. d. The theory does not allow enough governmental protection of citizens.
Answers
Nozick's Rights idea permits people to live as hermits without coercion or deception. Therefore, option (b) is the biggest complaint about the theory.
What is Nozick's rights theory?Nozick defines liberty rights as providing the individual control over some decisions, and each person is free to exercise those rights any way they see fit.
Nozick held a right-libertarian political ideology, which entails accepting the notion that people own themselves and have a right to their own property.
Anyone who obtained what they have by using these methods, in Nozick's opinion, has a moral right to it.
According to the "entitlement" view of justice, the distribution of wealth in a community is fair if (and only if) each member has a right to his possessions.
Therefore, as a result, option (b): "the theory allows individuals to live as hermits, without force or fraud," is the biggest complaint about Nozick's Rights theory.
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What is the current rate of interest for a 30-year mortgage? Is this a reasonable rate of return for the financial institutions? Are you willing and able to to borrow at this rate (no need to disclose personal financial information, just is this attractive to you and why)? Are banks willing and able to make loans? Why or why not?
Answers
The current rate of interest for a 30-year mortgage is constantly fluctuating based on various factors. As of August 2021, the average interest rate for a 30-year fixed mortgage was approximately 2.87%, according to Freddie Mac's Primary Mortgage Market Survey.
This rate is relatively low compared to historical averages, making it an attractive option for those looking to buy a home or refinance their current mortgage.In terms of financial institutions, it is a reasonable rate of return given the current economic climate. Banks and other lenders are able to borrow money at relatively low interest rates from the Federal Reserve, allowing them to offer competitive rates to borrowers while still making a profit.
Additionally, low interest rates encourage borrowing, which can stimulate the economy and benefit financial institutions in the long run.As for my personal willingness to borrow at this rate, I would need to consider various factors such as my financial situation, current housing market conditions, and other potential options for investing my money. However, a low interest rate is generally an attractive option for borrowers, as it can reduce the overall cost of borrowing and make homeownership more affordable for many individuals and families.
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What did National Federation of Independent Business v Sebelius do?
Answers
Due to the fact that Congress cannot use this authority to make someone purchase health insurance, the Court found that the individual mandate is invalid under the Commerce Clause.
In what sense is authority?
control, judgement, or the right to forbid another person from acting. a position that possesses this kind of authority, such as that held by the government, the police, or another similar organisation (often plural) (often in the phrase in authority).
A manager and his employees are an example. Directly in charge of them, he has the authority to direct their actions and delegate decision-making to them. For an organisation to be effective, he must be able to motivate the members to meet the objectives that have been set for them.
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What happens when sellers compete with other sellers to meet consumer's demands, and consumers compete with other consumers to find the goods with the lowest cost and the highest quality? Multiple select question. Markets are efficient. Markets are competitive. Markets are regulated.
Answers
Answer:
Markets are competitive.
Explanation:
In the competitive market, the number of sellers competed with each other in terms of prices, quality, maximize the market share.
In the given situation, various sellers are competed with each other for meeting out the consumer demands also at the same time it offers the goods at lowest cost and highest quality so that it capture the whole market
Therefore the second option is correct
the amount of aid provided to european countries from the marshall plan totaled about
Answers
The amount of aid provided to European countries from the Marshall Plan totaled about $13 billion. This financial assistance was given by the United States between 1948 and 1952 to help rebuild Europe's economies after World War II. The goal was to prevent the spread of communism and support the recovery of war-torn countries.
1. The Marshall Plan was a U.S. initiative to provide economic aid to European countries after World War II.
2. From 1948 to 1952, the United States provided financial assistance to help rebuild Europe's economies and prevent the spread of communism.
3. The total amount of aid provided through the Marshall Plan was approximately $13 billion.
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Careers emerging to improve environmental conditions include:
sanitary engineer
red physician
environmental geologist
green architect
Answers
Answer: The answer is green architect & environmental geologist.
Explanation:
Answer:
green architect and environmental geologist
Explanation:
What are the main objective of forming foreign employment protection / development board?
Answers
Explanation:
The development objective of the project is to contribute to poverty reduction in Nepal, through reducing the vulnerability of Nepalese migrant workers to forced labour and trafficking, and increasing opportunities for safe and productive migration for employment overseas.
Barbie's trading company sells Barbie's doll and the annual demand is 2800 doll.It costs the company $33 to place an order and the carrying cost is 7% of the unit cost.The cost of each doll is $40.The supplier offers the following discounts to Barbie's Company. Order Quantity < 100 Discount None 4% Unit Cost $40 $38 100 quantity < 200 200 8% $37.20 a) What would be the optimal order quantity? b) What is the minimum annual inventory cost? (18 marks) (2 marks)
Answers
To find the optimal order quantity and the minimum annual inventory cost for Barbie's trading company, we can use the economic order quantity (EOQ) formula.
a) Optimal Order Quantity:
The EOQ formula is given by:
EOQ = √[(2DS) / H]
where:
D = Annual demand = 2800 dolls
S = Ordering cost per order = $33
H = Carrying cost per unit per year = 7% of the unit cost = 0.07 * $40 = $2.80
Using these values, we can calculate the EOQ:
EOQ = √[(2 * 2800 * 33) / 2.80]
= √[(184,800) / 2.80]
= √66,000
≈ 257.25
Since the order quantity needs to be a whole number, the optimal order quantity would be rounded up to the nearest whole number. Therefore, the optimal order quantity is 258 dolls.
b) Minimum Annual Inventory Cost:
To calculate the minimum annual inventory cost, we need to consider the total cost, which includes ordering cost and carrying cost.
Total Cost = (D / Q) * S + (Q / 2) * H
where:
Q = Order quantity
We can calculate the total cost for each discount level and choose the one with the minimum cost.
For no discount (unit cost = $40):
Total Cost = (2800 / 258) * 33 + (258 / 2) * 2.80
= 280.62 + 361.20
= $641.82
For discount 1 (unit cost = $38):
Total Cost = (2800 / 258) * 33 + (258 / 2) * 2.80
= 280.62 + 346.80
= $627.42
For discount 2 (unit cost = $37.20):
Total Cost = (2800 / 258) * 33 + (258 / 2) * 2.80
= 280.62 + 343.20
= $623.82
Therefore, the minimum annual inventory cost is $623.82 when the order quantity is 258 dolls with a unit cost of $37.20.
Note: The answer assumes that the discount applies to the entire order quantity.
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On January 1 2017, George Company purchased a new building. George paid $25,000 as a down payment and issued a long-term note to finance the balance. The note, which carries an interest rate of 4%, requires George to make annual payments of $55,000 for six years, with the first payment due on December 31, 2017. What amount should George record as the cost of the new building (rounded to the nearest whole dollar)
Answers
The amount that George should record as the cost of the new building is $313,315.50.
Here, we are to determine the amount that George should record as the cost of the new building using the information given below.
Given Information
$25,000 paid as a down payment
interest rate of 4%
Required to make annual payments of $55,000 for 6 years and first payment due on Dec. 31, 2017.
PV factor of $1 annuity = (1 - (1 + i)^-n) / i
PV factor of $1 annuity = (1 - (1.04)^-6) / 0.04
PV factor of $1 annuity = 0.20968547427 / 0.04
PV factor of $1 annuity = 5.2421
Present value of payments = Annual payments to be made * PV factor of $1 annuity
Present value of payments = $55,000 * 5.2421
Present value of payments = $288,315.50
Cost of the new building = Cash down payment + Present value of payments
Cost of the new building = $288,315.50 + $25,000
Cost of the new building = $313,315.50
Therefore, the amount that George should record as the cost of the new building is $313,315.50.
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"What a given group of people appreciates" are their ___________. A. Cultural contexts b. Culture shock c. Cultural education d. Cultural values Please select the best answer from the choices provided A B C D
Answers
Answer:
d. Cultural values
Explanation:
Cultural values are the values and norms that are followed by a distinct society or a group of people. In other terms, values and norms developed within the society to form its basis are said to be the cultural values. The people believe, follow, and appreciate the values. They help in defining the ways of living and leading the life. The behavior, nature, and thinking of the society is influenced or structured as per the cultural values.
Answer:
D
Explanation:
I just took the assignment
true or false losing inventory for the year ended 31 August 2018 will be closing inventory for the year ended 31 August 2019
Answers
true because they closed
Why research proposal often gets rejected?
Give me at least 5 reason why?
Answers
cheating sneaking trust grown enough men and women
1.2 State the problems of using the linear probability model. In
addition, briefly explain how some of these problems can be
remedied (7
Answers
The linear probability model (LPM) is a regression model commonly used to analyze binary outcomes, where the dependent variable takes only two values, typically coded as 0 and 1. While the LPM has some advantages, it also suffers from several problems:
Lack of bounded predictions: The LPM does not account for the fact that probabilities should be bounded between 0 and 1. As a result, the predicted probabilities from the LPM can exceed this range, leading to unrealistic predictions.
Remedy: One way to address this problem is by using alternative models that ensure bounded probabilities, such as logistic regression or probit regression. These models use a transformation of the linear predictor to restrict the predicted probabilities within the valid range.
Heteroscedasticity: The LPM assumes constant variance across different levels of the independent variables. However, in practice, the variance of the error term may vary across observations, leading to heteroscedasticity.
Remedy: Robust standard errors or heteroscedasticity-consistent standard errors can be used to correct for heteroscedasticity in the LPM. These approaches adjust the standard errors to provide valid statistical inference in the presence of heteroscedasticity.
Non-linearity of the relationship: The LPM assumes a linear relationship between the independent variables and the probability of the binary outcome. However, in reality, the relationship may not be linear, and using a linear model can lead to biased estimates.
Remedy: One approach to address non-linearity is to include higher-order terms or interaction terms in the LPM. By including squared terms, cubic terms, or interaction terms between variables, the model can capture more complex relationships and improve the fit.
Omitted variable bias: If important variables are omitted from the LPM, the estimated coefficients can be biased. This is because the omitted variables may be correlated with both the dependent variable and the included independent variables.
Remedy: To mitigate omitted variable bias, it is crucial to include all relevant variables in the model. Careful consideration and inclusion of relevant control variables can help alleviate this problem.
Endogeneity: Endogeneity arises when there is a two-way causal relationship between the independent variable and the binary outcome. This violates the assumption of exogeneity in the LPM, leading to biased estimates.
Remedy: Instrumental variable (IV) regression is a technique commonly used to address endogeneity in the LPM. It involves identifying instrumental variables that are correlated with the endogenous independent variable but not directly related to the dependent variable. IV regression allows for consistent estimation of causal effects even in the presence of endogeneity.
By addressing these problems and implementing the suggested remedies, researchers can improve the accuracy and reliability of their analyses when working with binary outcomes using the LPM.
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common approaches to pricing are oriented around which four elements?
Answers
Profit, Competition, Cost and Demand are the element which the approaches for pricing fixing are oriented around.
Pricing refers to the process of determining the value that a producer will receive in the exchange of services and goods produced with final consumers or middle men.
The aim of generating profit is one of the element considered for price fixing.Competition levels with other companies in the industry will influence price fixing because consumers pocket have to be considered.Level of Cost incurred during production of the goods and services also play a great role in price fixing.Demand from the market also influence price setting on a product.Read more on this here
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Helio Corp. manufactures two products. The company's budgeted total overhead for 2021 is $350,000; of this amount, $326,000 relates to utilities and depreciation on automated equipment. In 2021, Donnelly expects to produce 250,000 of X and 400,000 units of Y. It takes 3.0 and 1.5 direct labor hours to produce one unit of X and Y, respectively. However, relative to the automated equipment, Product X requires 10 minutes per unit and Product Y requires 1 minute per unit. Hooduct X and Y have unit contribution margins of $5 and $4, respectively. If Helio Coro. decided to assign the automation-related overhead costs to products based on production time, what would be the automation overhead cost per unit for Product X and Product Y ?
Answers
If Helio Corp. decides to assign automation-related overhead costs to products based on production time, the automation overhead cost per unit for Product X would be $0.50 per unit, and the automation overhead cost per unit for Product Y would be $0.08 per unit.
To determine the automation overhead cost per unit for each product, we need to calculate the allocation based on production time.
For Product X, it takes 10 minutes of automation time per unit. Since there are 60 minutes in an hour, the automation time per unit for Product X is 10/60 = 1/6 of an hour. The total automation-related overhead cost for utilities and depreciation is $326,000. Dividing this amount by the number of units of Product X (250,000) gives us an automation overhead cost per unit of $326,000 / 250,000 = $1.304. However, this cost is based on direct labor hours, so we need to convert it to cost per unit of production time. Since Product X requires 3.0 direct labor hours per unit, the automation overhead cost per unit for Product X based on production time would be $1.304 / 3.0 = $0.434.
For Product Y, it takes 1 minute of automation time per unit. Following the same process, we divide the total automation-related overhead cost by the number of units of Product Y (400,000) to obtain an automation overhead cost per unit of $326,000 / 400,000 = $0.815. Considering that Product Y requires 1.5 direct labor hours per unit, the automation overhead cost per unit for Product Y based on production time would be $0.815 / 1.5 = $0.543.
In summary, the automation overhead cost per unit for Product X is $0.434, and for Product Y is $0.543 when the allocation is based on production time.
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Which is NOT a type of planning used by management?
A Short-term
B Deliberate
C Strategic
D Long-term
Answers
Answer:
B Deliberate
Explanation:
Planning involves thinking ahead of events. It entails preparing beforehand for future activities. Managers will engage in planning to ensure the business meets its objectives.
There are different types of plans. Manager can make short term or long term plans which are based on time. Strategic plans are about methodology or procedure. Deliberate is not a type of planning.
In its own country, a former supplier to your company recently began selling its own product that is identical to a product that was developed by your company. this is an example of?
Answers
This is an example of supply risk. supply hazards brought on by any halts in the movement of goods, whether they are components or raw materials, through your supply chain. Environmental hazards are dangers that come from outside the supply chain and are typically connected to governmental, social, economic, and climate variables, as well as the possibility of terrorism.
Supplier risk is any risk pertaining to a supplier's business practices or organizational structure that could potentially have a detrimental influence on a client company's operations. For many years, procurement departments have struggled with managing supplier risk. There are many hazards that frequently arise in supplier risk management, including supplier delays.
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Bill youngdahl has been collecting data at the tu student grill. He has found that, between 5:00 p. M. And 7:00 p. M. , students arrive at the grill at a rate of 2020 per hour (poisson distributed) and service time takes an average of 2. 2. 0 minutes (negative exponential distribution). There is only 1 server, who can work on only 1 order at a time
Answers
Based on the data given, the system may be analyzed to derive different performance indicators such as the average number of customers in the system, the average time a customer.
spends in the system, and the server usage. The server utilization, which is the proportion of time that the server is occupied serving clients, may be calculated using the Poisson arrival rate of 2020 per hour and the average service time of 2.2 minutes. The utilization may be estimated by multiplying the arrival rate by the average service time and dividing by 60. (to convert minutes to hours). In this example, the use would be: Usage = 2020 * 2.2 / 60 = 110 / 60 = 11/6 = 0.183 This indicates that the server is active 18.3% of the time and inactive 81.7% of the time. The average number of clients in the system and the average duration a customer spends in the system may also be calculated. The arrival rate divided by the difference between the arrival rate and the service rate yields the average number of clients in the system. The service rate is equal to the inverse of the average service time. The service rate in this scenario would be 1 / 2.2 = 0.4545. The system's average client count may therefore be determined as follows Customer average = 2020 / (2020 - 0.4545) = 2020 / 1965.55 = 1.03 This suggests that there are 1.03 clients in the system on average. The average time it takes a client The average number of clients in the system divided by the arrival rate can be used to compute system costs. In this scenario, the average amount of time a consumer spends in the system is In the system, the average time is 1.03 / 2020 = 0.00051 hours = 0.0306 minutes = 1.83 seconds. This indicates that a consumer spends an average of 1.83 seconds in the system.
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Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is non-cumulative. How much will the preferred and common stockholders receive on the date of payment?
Answers
Answer: $7,500 preferred stock, $12,500 common stock
Explanation:
Given that:
Total cash Dividend = $20,000
Preferred stock:
5,000 shares of $15-par, 10%
Therefore ;
preferred stock balance = number of share × price × rate
5000 × $15 × 0.1 = $7,500
Balance of common stock is therefore ;
Total cash Dividend - balance of preferred stock
$20,000 - $7,500 = $12,500
Ian invested $90,000 in an account paying an interest rate of 2. 6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 7 years?.
Answers
Answer:
$94176
Explanation:
Amount in 7 years = $90000 * (1 + 0.026/4)^7
Amount in 7 years = $94176
A bank's net interest margin is calculated by taking net interest income and:
a. dividing it by the bank's capital.
b. dividing it by the bank's assets.
c. dividing it by the sum of the bank's assets and capital.
d. subtracting taxes.
Answers
A bank's net interest margin is calculated by taking net interest income and dividing it by the bank's assets. The correct answer is option (b).
Net interest margin is a key performance indicator that reflects the difference between the interest income earned by a bank on its interest-earning assets and the interest expense paid on its interest-bearing liabilities. Net interest income is the difference between interest income and interest expense, and net interest margin is calculated by dividing net interest income by the bank's average interest-earning assets.
Therefore, option (b) is the correct answer.
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What would be the greatest opportunity cost for a talented college football player to remain in college for another year rather than enter the nfl draft?
Answers
The biggest opportunity cost for a gifted college football player who decides to stay in school an extra year rather than declare for the NFL draught is that he or she will miss out on being chosen by scouts during the playoffs in addition to losing out on the money.
The chance lost by not selecting one option over another is referred to as opportunity costs. The player forfeits the chance to be selected as a player and the related compensation if they choose to stay in college rather than declare for the NFL draught. NFL players get a significant salary for playing football; yet, if they want to continue their education in college, they forfeit this income and lose out on other opportunities while doing so.
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Why would managers have a bias toward smoothing earnings? What are some ways they achieve this in practice? Do you think smoothing earnings is good or bad?
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Managers have a bias towards smoothing earnings to make their company more attractive to shareholders. Managers achieve this by applying various accounting techniques such as timing adjustments, deferred income or expense recognition, restructuring charges, and inventory valuation changes to manipulate the company's financial statements.
There are several reasons why managers prefer smoothing earnings, such as increasing stock prices, meeting analyst expectations, and boosting earnings per share. Here are a few ways managers achieve this in practice:
Timing adjustments: Managers can accelerate or delay revenue and expense recognition to achieve the desired profit level.
For example, recognizing sales during the next quarter that should have been recognized in the current quarter would make the current quarter's earnings appear lower, and the next quarter's earnings appear higher. Conversely, recognizing the sales of the current quarter in the previous quarter would inflate earnings in the current quarter.
Deferred income or expense recognition: Managers may also defer recognizing certain expenses or income until later periods to smoothen earnings. For instance, they can defer recognition of an expense in the current year to the next year to boost earnings in the current year.
Restructuring charges: Managers can take restructuring charges such as layoffs and plant closures that occur in the current year and apply them over several years to smoothen earnings. This way, the current year's earnings will not be significantly impacted.Inventory valuation changes: Managers can inflate or deflate inventory value to manipulate earnings. Increasing inventory value will boost the earnings while deflating inventory value will decrease the earnings.Smoothing earnings can be both good and bad.
On the one hand, it can be good if managers smoothen earnings to create a stable revenue stream to mitigate volatility. This can also help companies focus on long-term strategic planning rather than short-term earnings goals. However, if managers deliberately smoothen earnings to mislead investors, analysts, and regulators, it can be considered bad. Investors make investment decisions based on financial statements, and any manipulations can lead to incorrect decisions that may have serious consequences.
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Insurance can help with ???
Answers
Answer:
B. In an emergency
Explanation:
Insurance is purchased to protect things that you own