So, let us see the facts. The company needs to sell 67000 units throughout the year. We also need to have 15000 units in the storage so that we have 15000 in December. Hence, we need 82000 totally. But there are also 6000 already in storage. Hence we only need to produce 82000-6000=76000 units. If anything is unclear just comment.
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable
Answer:
Aston has given the information required to meet division profit objective. Increasing the profit objective is common goal of every manager. Here manager wanted to meet profit objective by minimising fixed cost which is not wrong motive. Whether the excess production can be sold in the market. If there is a chance to sell, more production can be made.
Absorption costing means that all of manufacturing costs are absorbed by units produced. It calculates every cost on no. of units produced but it does not mean to increase production only in order to match income objective or to reach this goal instead of fact that inventory remains at end, and sale of that increased production does not take place and income objective met because of the lower cost per unit.
Answer: The actual value
Explanation: In simple words, actual value refers to the utility satisfaction that a customer receives after purchasing a product.
The only difference between perceived value and actual value is that while calculating perceived value the customer compares his product with other product . However, while calculating actual value he only compares the existing performance with his or her expectations.
In the given case, Jeremy feels the product he buy is no as useful as he thought. Hence it lacks actual value.
Answer:
The correct answer is option b.
Explanation:
The number of units of output sold is 8,000
.
The sales revenue is $9,600,000
.
The variable costs are $6,000,000
.
The fixed costs are $2,600,000.
The price of the product
= 
= 
= $1,200
The average variable cost is
= 
= 
= $750
Profit = TR - TC
Profit = 
$1,270,000 = $1,200Q - $750Q - $2,600,000
$3,870,000 = $450Q
Q = 
Q = 8,600 units
