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2 years ago

In Fine Fettle is considering three different options for selling its new product:

Business

1 answer:

Greeley [361]2 years ago

5 0

Explanation:

warehouse club sell items in bulk and offer limited choices in each product category.

high end health food market carry only health food product in a boutique like setting

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Wheels, Inc. manufactures wheels for bicycles, tricycles, and scooters. For each cost given below, determine if the cost is a pr

diamong [38]

Answer:

a. Metal used for rims: Product - DM- Prime

b. Sales salaries: Period - Selling

c. Rent on factory: Product - MOH - Conversion

d. Wages of assembly workers: Product - DL - Prime - Conversion

e. Salary of production supervisor: Period - Admin

f. Depreciation on office equipment: Period

g. Salary of CEO: Period - Admin

h. Delivery expense: Period - Selling

Explanation:

- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.

- Prime cost= direct material + direct labor

- Conversion cost= direct labor + MOH

I<u>n this exercise:</u>

a. Metal used for rims: Product - DM- Prime

b. Sales salaries: Period - Selling

c. Rent on factory: Product - MOH - Conversion

d. Wages of assembly workers: Product - DL - Prime - Conversion

e. Salary of production supervisor: Period - Admin

f. Depreciation on office equipment: Period

g. Salary of CEO: Period - Admin

h. Delivery expense: Period - Selling

8 0

2 years ago

A local pizzeria sells 500 large pepperoni pizzas per week at a price of $20 each. Suppose the owner of the pizzeria tells you t

kotegsom [21]

Answer: (1) 700 pizzas

(2) Its revenue increases by $2600.

Explanation:

Given that,

price elasticity of demand for his pizza = -4

Percentage change in price = 10%

Initial Quantity, $Q_{0}$ = 500 Pizzas

Elasticity of demand = $\frac{Percentage\ change\ in\ quantity }{Percentage\ change\ in\ price }$

-4 = $\frac{Percentage\ change\ in\ quantity }{0.1 }$

$\frac{Percentage\ change\ in\ quantity }$ = -4 × 0.1

$\frac{Q_{1}-Q_{0}}{Q_{0}}$ = 0.4

$\frac{Q_{1}-500}{500}$ = 0.4

∴ $Q_{1}$ = 700

Initial price, $P_{0}$ = $20

Changed price, $P_{1}$ = $18

Revenue at t = 0

$P_{0} Q_{0}$ = 500 × 20 =$10000

Revenue at t = 1

$P_{1} Q_{1}$ = 700 × 18 = $12600

Therefore, from the above calculations it was seen that his revenue increases by ($12600 - $10000)= $2600 and its sales increases to 700.

8 0

2 years ago

3. Bob, a minor, contracted with Pioneer Temporary Staffing Agency, LLC, an employment agency, for the agency to find a job for

svp [43]

The agency's position is that Bob had already signed a contract, and that the contract included a placement fee due to the fact that Bob was able to find this job through the agency. On the other hand, the position that Bob would most likely argue is that he is a minor. As a minor, Bob is allowed to disaffirm his contract. Therefore, Bob is likely to win in this dispute.

3 0

2 years ago

Problem 5-30 Graphing; Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8][The following information ap

WARRIOR [948]

Answer:

Break Even Point

In Units = 2,000 units

In value = $80,000

Explanation:

Break even Point = $\frac{Fixed\ Cost}{Contribution}$