All categories

2 years ago

Below is budgeted production and sales information for Octofic Cans Inc. for the month of March:

Business

2 answers:

Dahasolnce [82]2 years ago

7 0

Answer:

The Budgeted sales for the month are 108,000 units. The right answer is b.

The true answer is c. Unit variable cost remains constant with changes in production

Explanation:

In order to calculate the Budgeted sales for the month we would have to calculate the following formula:

Budgeted sales= Estimated sales + Desired ending inventory - Beginning inventory

= (85,000+25,000)+4,000 - 6,000

= 108,000 units

The Budgeted sales for the month are 108,000 units

Variable cost per unit remains same even though there's a change in output. Hence, Unit variable cost remains constant with changes in production.

Murljashka [212]2 years ago

5 0

Answer: 108,000 ; Unit variable cost remains constant with changes in production

Explanation:

The sales budget is part of the main budget and it is used to predict the amount of revenue that will be gotten from sales of a particular good or services. For this question, the budgeted sales for the month will be the estimated sales added to the desired ending inventory, then the beginning inventory is subtracted. This will be:

= (85,000+25,000) + 4,000 - 6,000

= 110,000 + 4,000 - 6,000

= 108,000

The thing true about the variable cost is that the variable cost per unit will remain the same even though there is a change in output. Therefore, option C is the right answer.

You might be interested in

You may worry that the indirect organizational strategy is unethical and manipulative, but the alternative—breaking the news blu

jasenka [17]

Question attached

Answer and Explanation:

Ethical: it is ethical to reduce the emotional impact of a bad news by making use of an indirect approach which is less harsh and blunt unlike the direct approach. In situations such as communicating that a person has lost his job, it is important that the manager communicates using indirect approach

Direct: you are communicating facts to someone that has less time. Therefore the direct approach would be most appropriate as it goes straight to the point without delays

Intend to deceive:your boss is extremely busy therefore in this case it would be important to use the direct approach and move straight to the point from the beginning not hiding the bad news at the end of the mail

4 0

2 years ago

Which of the following statements is correct?(A) Normal profits will cause an industry to expand.(B) Economic profits and losses

notka56 [123]

Answer: The correct option in this case is (c). i.e. Economic profits induce firms to enter an industry and losses encourage firms to leave

Economic profits is the difference between total revenues and total costs excluding opportunity cost.

For a instance when a firm generates economy profits then in that scenario it will be profitable to continue and expand .

4 0

2 years ago

A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout fr

valentinak56 [21]

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

4 0

2 years ago

Read 2 more answers

Opportunity costs ______. are benefits that are given up when selecting one alternative over another are uncommon in decision ma

musickatia [10]

Answer: are benefits that are given up when selecting one alternative over another.

Explanation: When faced with the decision to make a choice between two probable options or the need to give up a certain amount of a product in other to increase production of another, the benefit or choice forgone by opting to go for an alternative is called opportunity cost. Put simply, the cost incurred or loss associated with giving up a certain investment for another.

Opportunity cost can be computed mathematically using the relation:

Opportunity cost = (Return on best forgone option - return on chosen alternative).

Opportunity cost is often considered in other to guide and weigh investment options.

7 0

2 years ago

MLB The company may build a $20M facility now to handle anticipated market demand for the next 10 years. Alternatively, the comp

densk [106]

Answer:

Alternative 1 has present worth of $20,000,000.00

Alternative 2 has present worth of $18,543,040.00

Explanation:

The present of the first alternative is the cost of the building the facility now,year zero which is $20 million.The value can be validated as follows:

Year Cash flows Discount factor present worth

cash flow* discount factor

0 $20,00,000 1/(1+10%)^0=1 $20,000,000

The PW of the second alternative:

Year Cash flows Discount factor present worth

cash flow* discount factor

0 $10,000,000 1/(1+10%)^0=1 $10,000,000

4 $8,000,000 1/(1+10%)^4=0.68301 $5,464,080

7 $6,000,000 1/(1+10%)^7=0.51316 $3,078,960

Present worth of second alternative $ 18,543,040

Hence alternative with PW is better as it has lower present worth of $ 18,543,040.00

5 0

2 years ago