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2 years ago

Monfett Manufacturing earned operating income last year as shown in the following income

Business

1 answer:

kogti [31]2 years ago

4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

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A computer store has purchased three computers of a certain type at $500 apiece. It will sell them for $1000 apiece. The manufac

Ugo [173]

Answer:

The expected profit will be of 700 dollars

Explanation:

The expected profit will be the multiplication of the outcomes by their probability:

We have 10% chance of selling zero thus:

1,000(0) + 200(3-0) - 1,500 = -900

We have 20% chance of selling one thus:

1,000(1) + 200(3-1) - 1,500 = -100

We have 30% chance of selling two thus:

1,000(2) + 200(3-2) - 1,500 = 700

We have 40% chance of selling all thus:

1,000(3) + 200(3-3) - 1,500 = 1,500

$\left[\begin{array}{ccc}weight&outcome&w.profit\\0.1&-900&-90\\0.2&-100&-20\\0.3&700&210\\0.4&1,500&600\end{array}\right]$

We add each weighted profit to get the expected result:

-90 - 20 + 210 + 600 = 700

5 0

1 year ago

When preparing a direct materials budget, the units of raw material needed to meet production should be ______ to desired ending

Vedmedyk [2.9K]

Answer:

Added

Explanation:

For determining the amount of raw material to be purchased, the following things need to be adjusted

1. The raw material needed - Added

2. Ending inventory - Added

3. Beginning inventory - Deduct

In mathematically,

Purchase of raw material = Raw material needed to meet production + ending inventory of raw material - beginning inventory of raw material

Hence, it should be added to desired ending inventory

8 0

1 year ago

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is

Degger [83]

Answer:

Annual inventory cost = $ 800.

Explanation:

Demand, D = 4000

Order cost, S = $ 20

Holding cost, H = $ 4

EOQ = sqrt(2 * D * S / H)

= sqrt(2 * 4000 * 20 / 4)

EOQ = 200

Annual inventory cost = Annual setup cost + Annual holding cost

= (D/Q * S) + (Q/2 * H)

= (4000 / 200 * 20) + (200 / 2 * 4) = 400 + 400 = $ 800

Annual inventory cost = $ 800.

5 0

1 year ago

Evan Corporation provided consulting services for Kensington Company in 2015. Evan incurred costs of $48,000 associated with the

lisov135 [29]

Answer:

2015 - $24,000

2016 - $0

Explanation:

The computation of profit for each year is shown below:

For 2015:

The profit = Service revenue - expenses incurred

= $72,000 - $48,000

= $24,000

For 2016:

There is no transaction to record under the accrual basis of accounting. So, the profit is zero

As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts

3 0

2 years ago

Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $320

Fudgin [204]

Answer:

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

Explanation:

Giving the following information:

Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day.

First, we need to calculate the unitary variable cost:

Total variable cost= 320 - 70= 250

Unitary varaible cost= 250/10= $25

Contribution margin= 30 - 25= $5

In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.

6 0

1 year ago