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Lerok [7]
1 year ago
14

Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which

is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Business
1 answer:
ozzi1 year ago
8 0

Answer:

$8,000

Explanation:

                                                    khaki shorts           khaki pants

machine minutes per unit                    15                         24

contribution margin per unit               $16                       $32

CM per machine minute                  $1.067                   $1.33

minimum demand                            3,000                   3,000

machine minutes required              45,000                72,000

total machine minutes available               288,000

total machine minutes remaining               171,000

production                                             0                       7,125

total production                                3,000                   10,125

total contribution margin               $48,000               $324,000

if 100 more machines hours are added, then production time increases by 6,000 minutes which can be used to produce 250 more khaki pants. Contribution margin will increase by 250 x $32 = $8,000

I calculated contribution margin per minute, but you could also calculate contribution margin per hour to determine which product is more profitable.  Contribution margin per hour for shorts = $64, and for pants = $80. The answer will not change.

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Rachel and Hogan have three children. To save on haircuts, Rachel cuts the three kids and Hogan's hair. Doing this saves them ab
Dvinal [7]

Answer:

They will have $37,595.23 in mutual fund in 15 years

Explanation:

<em>Step 1: Determine the present value of savings</em>

This can be expressed as;

Present value=monthly savings×number of months in 15 years

where;

monthly savings=$50

number of months in 15 years=12×15=180 months

replacing;

Present value=50×180=$9,000

<em>Step 2: Determine the future value of savings including interest</em>

This can be expressed as;

FV=PV(1+R)^N

where;

FV=future value

PV=present value

R=annual interest rate

N=number of years

In our case;

FV=unknown

PV=$9,000

R=10%=10/100=0.1

N=15 years

replacing;

FV=9,000(1+0.1)^15

FV=9,000(1.1)^15

FV=$37,595.23

They will have $37,595.23 in mutual fund in 15 years

3 0
1 year ago
Alicia is conducting a study on consumer behavior. The study requires her to note the number of people who shop at a particular
Paul [167]

Answer:

the correct answer is YES ignore her above answer

Explanation:

4 0
2 years ago
Read 2 more answers
On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had
harkovskaia [24]

The journal entry, to record the sale of the treasury shares on February 1, would include:

a) debit to a loss account for $112,500

b) credit to Treasury Stock for $90,000

c) credit to a gains account for $112,500

d) debit to Treasury Stock for $90,000

Answer:

Option D Debit to Treasury Stock for $90,000

Explanation:

The journal entry of repurchase of treasury stock is as under:

Dr Treasury Stock $90,000

Cr          Cash              $90,000

As the treasury stock has been purchased for cash, the cash has been decreased and the decrease in treasury stock is credit in nature. Hence the decrease in stock is shown as debit and decrease in cash is shown as credit.

The rate as which the stock is purchased is the price at which treasury stock will be debited = Treasury shares purchased × Fair Value per Share

= 3,750 shares × $24

= $90,000

5 0
1 year ago
Frederick W. Taylor is speaking to a friend about scientific management. Which of the following statements might Frederick say?
zvonat [6]

Answer:

(A) The best way to increase your workers' productivity is to study their movements carefully. Figure out the fastest way to get the job done correctly, and then train all of the employees to do it the same way.

(B) Are you promoting people just because you like them? Try having managers make promotion decisions solely on the basis of a person's technical ability to do the work.

Explanation:

<em>Scientific Management theory</em> laid out by <em>Frederick W. Taylor</em> focuses on <em>effective (best) and efficient (less costly)</em> way of getting the work done.

(1) Statement A focuses on <em>motion and time studies</em> respectively.

In <em>motion studies</em>, we are concerned with elimination of unnecessary movements and activities required to perform a job. For eg, in order to manufacture 100 packets of biscuits, 5 processes are required but the processes currently used are 10, so 5 processes must be eliminated in order to save time and costs.

<em>Time studies</em> implies setting up time for performing a particular work activity. The time must be same for all the workers and could be based on the past factory time data of the activity. For eg, an average time per worker can be calculated for the activity taking into consideration the total time spent by total no. of workers on a particular work activity.

(2) Statement B focuses on promoting the persons based on their technical ability to do the work.

<em>Differential piece wage system</em> of F.W. Taylor applies perfectly to this statement. It prescribes paying workers as per the work done by them. For eg, a worker producing 15 units of a good per day would be paid $ 12 a unit, let's suppose and the worker producing less than that would be paid $ 10 a unit. So, the workers producing 15 and more units of a good, have higher technical ability with respect to the production of that good and hence, higher pay. The workers producing less than 15 units have lower technical ability and hence lower pay.

(3) Statement 3 relates to the administrative principle of "Unity of Command" laid out by Henry Fayol and hence, is not the solution statement.  

4 0
1 year ago
Swinnerton Clothing Company's balance sheet showed total current assets of $2,250, all of which were required in operations. Its
nevsk [136]

Answer: $1,530

Explanation:

It's net working capital that was financed by investors include the following figures,

Total current Assets.

Accounts Payables and Accrued wages need to be deducted because they came about as a result of operations and are neither of debt or equity financing so are considered free.

So, in calculating we have,

= 2,250 - 575 - 145

= $1,530

Swinnerton Clothing Company's net operating working capital that was financed by investors is $1,530

6 0
1 year ago
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