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KIM [24]
2 years ago
12

A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts ha

ve a price of $32 and variable costs of $17. Which of the following is a true statement for this clothing manufacturer in the short term? 1. They would prefer to make shorts instead of shirts. 2. They would prefer to make skirts instead of shorts. 3. They would not have a preference for either product. 4. If both products used the same machine for different lengths of time, it would make no difference.
Business
1 answer:
Gnoma [55]2 years ago
6 0

Answer:

1)They would prefer to make shorts as contribution margin per unit is higher for shorts

Explanation:

Step 1. Given information.

  • Sales price shirts is $24
  • Variable costs shirts is $10
  • Sales price shorts $32
  • Variable costs shorts $17

Step 2. Formulas needed to solve the exercise

Contribution margin = sales price - variable cost

Step 3. Calculation.

Contribution margin shirts  = 24 - 10 = 14

Contribution margin shorts = 32 - 17 = 15

Step 4. Solution.

<h2>Contribution margin shorts > Contribution margin shirts</h2>

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Answer:

Per unit customer costs = $4.5 per unit

Explanation:

Under activity based costing cost are allocated based on per activity rate.

Customer return processing activity rate = $45 per return

Shipping activity rate = $10 per shipment

for Product 1

Total cost of shipment and return will be as follows:

Shipment = 1,200 X $10 = $12,000

Returns = 150 X $10 = $1,500

Total = $12,000 + $1,500 = $13,500

Total units = 3,000

Per unit customer costs = $13,500/3,000 units = $4.5 per unit

4 0
2 years ago
Vitale Hair Spray had sales of 27,000 units in March. A 60 percent increase is expected in April. The company will maintain 20 p
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Answer:

50,490 units

Explanation:

The computation of the number of units the company should produced is shown below:

= Expected sales units + ending inventory units - opening inventory units

where,

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So, the units to be produced is

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5 0
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A college math department consisting of 9 faculty members must choose a department head, an assistant department head, and a fac
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4 0
1 year ago
A regional airline owns 10 aircraft and employs 20 pilots. The airline makes an average of three trips per day with each of its
marishachu [46]

Answer:

a short-run decision because the number of aircraft is held constant while the labor input is changed.

Explanation:

In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.

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Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to d
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Answer:

Before the listing agreement is signed.

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