Answer:
B
Explanation:
moneys always good motivation
Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
- financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase
Explanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
Answer:
The correct option is (A).
Explanation:
A statistical study is a process of making inferences about the population using the sample data.
In a statistical study the researcher first conducts an experiment and compute certain sample statistic. Then uses these sample statistics to derive conclusions about the population.
If the sample size is large enough then the sample statistics can be used to estimate the population parameter values.
Or using these sample statistic the researcher can apply a hypothesis test to determine whether the claim made about the population as a whole is true or not.
Thus, the correct option is (A).
Answer:
$19.95
Explanation:
Breakeven is where when total Cost = Total Revenue,
Let Selling Price = X
Total Revenue = Total cost
X*800 = 10,600+6.70*800
800x = 15960
Hence, selling Price(X) = 15960/800 = $ 19.95
Answer:
Objective function:
Maximize Z: 30P1 + 25P2 + 28P3
Subject to: 2.00P1 + 1.50P2 + 3.00P3 ≤ 450 (Department A constraint)
2.50P1 + 2.00P2 + P3 ≤ 350 (Department B constraint)
0.25P1 + 0.25P2 + 0.25P3 ≤ 50 (Department C constraint)
P1, P2, P3 ≥ 0 (Non-negativity)
Explanation:
The objective function is formulated from the contribution margin of the three products. For instance, the contribution of Product 1 is $30, the contribution of Product 2 is $25 and the contribution of Product 3 is $28. Thus, the objective function will be 30P1 + 25P2 + 28P3.
The constraints were obtained from the departmental labour hours requirements for each product. For instance, Product 1 requires 2 hours in department A, Product 2 requires 1.50 hours in department A and Product 3 requires 3 hours in Department A. Thus, the constraint will be 2.00P1 + 1.50P2 + 3.00P3.
