Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is $71.49.
Explanation:
- people will pay for the snowboards is $129.99.
- Ski Market is convinced that it needs a 45%
- The most that Ski Market can pay to its supplier for the snowboard is
- =
×45 - =$ 58.5
- =129.99 ±58.5
- = $71.49
- Therefore, Ski Market can pay to its supplier for the snowboards is $71.49.
Answer:
Option (c) is correct.
Explanation:
Given that,
Budgeted unit sales for August = 4,600 units
Variable selling and administrative expense per unit = $7.30 per unit
Budgeted fixed selling and administrative expense = $51,980
Depreciation per month = $6,440
Total variable selling and administrative expense:
= Budgeted unit sales for August × variable selling and administrative expense per unit
= 4,600 × $7.30
= $33,580
Total fixed selling and administrative expense:
= Budgeted fixed selling and administrative expense - Depreciation per month
= $51,980 - $6,440
= $45,540
Total cash disbursements for selling and administrative expenses:
= Total variable selling and administrative expense + Total fixed selling and administrative expense
= $33,580 + $45,540
= $79,120
Answer:
$61,127,596
Explanation:
formula for the value of operations =
[Free Cash Flows (1 + growth rate)] / (WACC - growth rate)
where
We have D/E = 2 or D=2*E (debt-equity ratio)
Tax = T=35%,
Ks=10%,
Kd =7%
Kd*(1-T) = 7%*(1-35%) = 4.55%
WACC = Kd*(1-T)*(D/(D+E)) + Ks*(E/(D+E))
WACC = 4.55%*(2E/3E) + 10%*(E/3E)
WACC = 4.55%*(2/3) + 10%*(1/3)
WACC = 6.37%
Value of Ops = 2000000*(1+3%)/(6.37%-3%)
Value of Ops = $61,127,596
to be profitable it must receive for the product line $61,127,596
Answer:
The unit product cost of product D28K is $94.49
Step by Step Explanation:
Activities and Activity Rates × ExpectedActivity
Assembly ($14.35 per machine-hour) x 690= $9,901.50
Processing orders ($47.85 per order)×40 =$1,914.00
Inspection ($70.30 per inspection-hour)×10= $703.00
Therefore:
Total overhead costs assigned=
$9,901.50 + $1,914.00+ $703.00= $12,518.50
Number of units produced
$12,518.50/430 = $29.11
Overhead cost per unit$ 29.11
Unit product cost = Direct materials + Direct labor + Overhead
Unit product cost = $35.82 + $29.56 + $29.11 = $94.49
Answer:
a. managers investigate all variances. ==>TRUE
b. repeating favorable variances could indicate that the standards are too low. ==> TRUE
c. unfavorable variances always indicate a performance problem. ==>FALSE
d. variances in different areas are never related. ==> FALSE
