Answer:
Find attached complete question:
Option A 1452 units
Explanation:
The increase in labor cost=$3.39-$2.89=$0.50
Half of the increase would reflect as increase in price i.e$0.25
Current price is $16
new price is $16+$0.25=$16.25
contribution margin =selling price -variable cost
currently units sold=$30,875/$16= 1,930
Current contribution per unit=$11,401/1930=$5.91
new contribution per unit would reduce by $0.25 i.e $5.91-$0.25=$5.66
breakeven in units=period cost/contribution margin per unit
period cost is $8346
breakeven units=$8346/$5.66=1475 units
The closest option is A 1452 units,the difference could be due to rounding error
Answer:
Actual Direct material cost = $81,500
Actual Direct labor cost = $187,500
Actual manufacturing overhead = $272,000
Explanation: kindly see attached picture for detailed explanation.
Variances ; Standard Cost Unfavorable Favorable Direct materials $ 80,000 Price variance $ 4,500 Quantity variance $ 3,000 Direct labor 184,000 Rate variance 2,700 Efficiency variance 6,200 Manufacturing overhead 271,000 Spending variance 4,000 Volume variance 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.
Answer:
a. $0.98
b. 6,000 container
Explanation:
a. The computation of the incremental contribution margin per container is shown below:
= Drop selling price - total variable manufacturing cost - drop selling price × sales commission - sale value in raw form × basis
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 ÷ 4
= $0.98
b. The minimum number of containers of candy sold each month is
= (Per month salary paid to sales person + Master candy maker salary) ÷ ( incremental contribution margin per container)
= ($2,000 + $3,880) ÷ $0.98
= 6,000 container
We simply applied the above formulas so that the a and b part could arrive
Answer:
c. She should pay with a credit card.
Explanation:
Credit cards are basically loans that the banks give to the customer to use and pay back before the due date.
Now if Sean's mother does not know how much money she has, she must use the credit card because to be financially responsible and pay the type services their due amount.
Later she can check her account details and make payments to the bank as per requirement.
Answer:
d.Yes, income will increase by $30,000
Explanation:
The net profit from this order = Revenue – all expense related = number of unit sold x (price per unit – cost per unit) =
6,000 boxes x (price $15 – Direct materials $6 - Direct labor $2 - Variable overhead $2 - Fixed overhead $3 but avoidable) = 6000 x (15-6-2-2-0) = $30,000
