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2 years ago

7. Plush Furniture sells imported rosewood dining tables. The cost of one mode

Business

1 answer:

erma4kov [3.2K]2 years ago

4 0

Answer:

$877.30

Explanation:

The cost of one table is $762.87

mark-up is 15% based on the selling price

If mark-up is 15%, then selling price will be 115 % of the cost.

Cost = $762. 87

$762.87 = 100 %

115% =762.87/100 x 115

=7.6287 x 115

=877.30

selling price will $877.30

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Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to k

suter [353]

Answer:

Ethics

Explanation:

Ethics also called moral philosophy involves how an individual systemises, defends and recommends the concept of right or wrong.

Summer is facing an ethical decision of either returning the bag or keeping it for herself. Her decision will be based on her definition of right or wrong.

If her moral philosophy is one that does not see theft as something that is wrong, she will decide to keep the bag. If on the other hand she sees keeping the bag that is not her own as wrong she will decide to return it.

6 0

2 years ago

On January 1, 2018, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000 when the net

klasskru [66]

Answer: Investment income = Earning during 2018 × outstanding common shares

= $80,000 × 35%

Dividend declaration = Dividend × outstanding common shares

= $40,000 × 35%

Ramsey’s share of Vapor’s income for 2018 = Investment income - Dividend declaration

= $28,000 - $14,000

= $14,000

8 0

2 years ago

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to

Pachacha [2.7K]

Solution:

To determine:

1. The S will make the tubes or purchase them.

2. The organisation reasonable average buying price a package.

3. The S should manufacture or purchase the tubes if it is 140,000 tubes per year.

4. The turning point for shopping externally.

1. Declaration indicating cost-benefit analysis of options for making and purchasing:

Particulars Amount (in $) Cost of purchase per box

1.35 Less: savings in variable cost

Direct materials 0.90

Direct labour 0.20

Total savings 1.10

Excess of costs over savings (per box) 0.25

Here, excess expenses in foreign transactions have been found to be $0.25 per package. The client is therefore encouraged to make at home.

2. The highest price for the business S shouldn't be more than $1.10 per package for a client than the vendor's savings.

3. Claim showing the excess cost amount when purchased:

Particulars Amount (in $) Excess cost paid on purchase

30,000 Less: Expense on annual equipment rent

(b) 42,000 Excess expense on make 10,000

If 140,000 tubes are needed the organisation would buy them from outside as $10,000 would be saved.

4. Calculation for break-even point for outside purchase:

It is 180.000 boxes which are the break-even decision point. Thus if the annual demand is above 180,000, the organization will build the cylinders.

4 0

2 years ago

Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of

pantera1 [17]

Answer:

a:Total Variable Costs $26

a:Total Manufacturing Costs = $ 30

b:Net Income Variable Costing $100,000

b: Net Income Absorption Costing $ 100,000

Explanation:

Smuckers Manufacturers

Costs per case under Variable Costing

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

Total Variable Costs $26

Costs per case under Absorption Costing

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs $ 900,000

Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

SMUCKERS

Variable Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total Variable Costs 780,000

Contribution Margin 240,000

Fixed Expenses 140,000

Total fixed manufacturing overhead $120,000

Fixed selling and administrative 20,000

Net Income 100,000

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

SMUCKERS

Absorption Costing Income Statement

For the Third Quarter of 2017

Sales (30,000*34) 1020,000

Direct materials (30,000*16) 480,000

Direct labor (30,000*7) 210,000

Variable manufacturing overhead (30,000*3) 90,000

Total fixed manufacturing overhead $120,000

Total Manufacturing Costs 900,000

Gross Profit 120,000

Fixed Expenses 20,000

Fixed selling and administrative 20,000

Net Income 100,000

3 0

2 years ago

If Salerno Inc. desires to lock in a minimum rate at which it could sell its net receivables in Japanese yen but wants to be abl

galben [10]

Answer:

Purchasing yen put option

Explanation:

Hedging is a risk management practice where assets either liquid or any other form is protected from risks as a result of future loss from fluctuation in prices of commodities , securities or currencies.

One of the ways of hedging is purchasing a put option. This gives the owner the privilege to sell a listed assert at a given strike price through an tikk the option's expiration period.

5 0

2 years ago