Answer:
The correct answer is A.
Explanation:
Giving the following information:
Schrute Farm Sales buys portable generators for $470 and sells them for $720 He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $7,000 a month rent for his store and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June.
Revenue= 720*500= $360,000
Cost of goods sold= 470*500= 235,000 (-)
Sales commision= 0.05*360,000= 18,000 (-)
Contribution Margin= 107,000
Rent= 7,000 (-)
Fixed sales comission= 1,700 (-)
Operating income= $98,300
Answer:
ECONOMIES OF SCOPE
Explanation:
Economies of Scope concept implies producing different , but related products will reduce the per unit cost of production of the firm (relatively lesser than if the products would have been produced separately.
This happens because of backward & forward linkages in interrelated but different goods' inputs & outputs .
Ex : In this case, another byproduct - molasses has been produced of waste from sugar production, which could have otherwise been purchased input.
Economies of Production is cost reduction due to quantity & not variety production. Diseconomies of Scale & Diseconomies of Scope are their opposite phenomenas leading to cost rise . So , none of these 3 are apt.
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
Answer:
The approximate present value = $24294
Explanation:
Given the annuity or expected amount for 10 years = 2000 dollars
The corporation expects the amount for next 10 years = $3500
Discount rate or interest rate = 8%
Present value = (2000 × PVIFA at 8%, 10 YEARS) + (3500 × PVIFA at 8%, 10 YEARS × PVIFat 8%, 10 YEARS)
Present rate = (2000 × 6.710) + (3500 × 6.710 X 0.463)
= $24293.6 or $24294 (round off)
For sale by owner, 3 bedroom home, family room, fireplace, den , large master bedroom
