Answer:
False
Explanation:
The weighted average contribution margin is calculated by multiplying individual contribution margin with respective size pizzas (i.e number of units sold) then total contribution margin (i.e of both medium and large size) is divided upon total number of units sold, see as follows:
According to Buttercrust Pizza company's sales data medium pizzas sold are twice the number of large pizzas. Now here we have to take an assumption since we aren't given actual sales units. Keeping in mind the sales data we can assume that 100 units of medium pizzas and 50 units of large pizzas are sold during the period.
Contribution margin of medium pizza: (CM× units of medium size pizzas)
Contribution margin of large pizza: (CM× units of large size pizzas)
Contribution margin of medium pizza: $10× 100 = $1000
Contribution margin of large pizza: $22× 50 = $1100
Total contribution (of both pizza sizes) = $2100
Total sales units (of both pizza sizes) = 150
The weighted average contribution margin is calculated as follows:
WACM= $2100÷ 150
WACM= $14
(Disclaimer: the solution of this question has been concluded using self-induced assumptions.)
Answer:
$158,730
Explanation:
Mario incoporation started the year with a net fixed assets of $75,300
At the end of the year the net fixed assets was $96,700
The depreciation expense is $13,270
Therefore the company's net capital spending for the year can be calculated as follows
= $96,700+$75,300-$13,270
= $172,000 - $13,270
= $158,730
Hence the company's net capital spending for the year is $158,730
Answer:
A) anchoring bias
Explanation:
Anchoring bias refers to a common mistake of relying heavily on the first information that we get, or in this case, the first information that we look for.
We all tend to suffer from anchoring bias, that is why it is one of the oldest sales techniques. Everyone has seen an ad that states a before price and a discount price. If the difference between the before price and the after price are significant, then we will consider that it is a bargain. Or a salesperson first shows us an expensive product, and then shows us a similar but lower priced product, we tend to believe the second product is cheap.
When most of us look for a job, of course we focus on the salary, since we want to work to earn money. But only focusing on the salary is seeing only half the picture, although the most important half. Other associated benefits or costs are usually not considered, e.g. a high paying job might also require dressing formally or spending a lot of time travelling.
Answer:
Gross Profit = $304,050
Operating expenses = $162,050
Explanation:
The computation of gross profit and operating expenses is shown below:-
Net purchases = Purchase - Purchase discounts - Purchase returns and allowances
= $505,500 - $7,250 - $3,500
= $494,750
Cost of goods sold = Net purchases + Freight-in + Inventory + Ending inventory
= $494,750 + $4,100 + $56,000 - $66,000
= $488,850
Gross profit = Net sales - Cost of goods sold
= ($810,000 - $5,100 - $12,000) - $488,850
= $304,050
Operating expenses = Gross profit - Net income
= $304,050 - $142,000
= $162,050
Answer:
Estimated manufacturing overhead rate= $40 per machine hour
Explanation:
Giving the following information:
The Bolen Company forecasts that total overhead for the current year will be $8,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $10,000,000 and the actual machine hours are 80,000 hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 8,000,000/200,000= $40 per machine hour
