Answer:
$375
Explanation:
If Johnson will use the desired gross margin percentage to determine the selling price of its products, they must use the following formula:
selling price per unit = total manufacturing costs per unit / (1 - gross margin)
Total manufacturing costs = variable manufacturing costs + total fixed costs + batch level fixed overhead = $2,350,000 + $1,200,000 + $200,000 = $3,750,000
total manufacturing cost per unit = $3,750,000 / 20,000 units = $187.50
selling price per unit = $187.50 / (1 - 50%) = $187.50 / 50% = $375
Answer: segmentation
Explanation:
Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.
From the question, we are informed that XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.
Answer:
correct option is b. $ 30
Explanation:
given data
overhead cost = $15,000
direct labor hours = 5,000
required direct labors hours = 10
solution
we get here Fixed Overhead Rate that is
Fixed Overhead Rate = estimated overhead cost ÷ direct labor hours ........1
Fixed Overhead Rate = 
Fixed Overhead Rate = $3 per labor hour
and
Job overhead applied express as
overhead = Fixed Overhead Rate × required direct labors hours ..........2
overhead = $3 × 10
overhead = $30
so correct option is b. $ 30
The following journal entry will be passed in the books of accounts and the interest expense is calculated to an amount of $9600
<u>Explanation:</u>
Given data:
amount of note: $200000, annual principal payments to be made each year at December 31st = $40000, interest amount to be charged = 6 percent, duration of note = 5 years
the following calculation is made in order to find out the amount of interest:
Amount of note minus principal payment multiply with rate of interest
now, putting the figures in formula:
interest = 200000 minus 40000 = $160000 multiply with .06 = $9600
Thus, the interest amount = $9600
The interest expense will be debited with an amount of $9600 in the books of accounts.
Answer:
Explanation:
1. Present value = Annuity amount * PVA (n=4;i=10%)
250,000 = Annuity amount*3.16987
Annuity amount = $78,868
2. Present value = Annuity amount * PVA (n=5;i=8%)
250,000 = Annuity amount* 3.99271
Annuity amount = $62,614
3. i = 10%
Annual payments = $51,351
250,000 = 51,351 *X
X = 4.86845
When looking at the table of present value of an ordinary annuity, PVA of 4.86845 and i=10%, ⇒ n = 7 payments
4.
Payments = 104,087
n = 3
250,000 = 104,087*X
X = 2.40184
When looking at the table of present value of an ordinary annuity, PVA of 2.40184 and n=3, ⇒ i = 12%
