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2 years ago

Which statement below best describes a profit center?

1 answer:

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Answer: (B) The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital.

Explanation:

The profit center is the type of center in which the authority makes various types of decisions that affect the major profits. It also include the power for choosing the market and the sources.

The profit center is the type of business unit which basically generate the various type of revenue and cost. It is the type of department that generate the income by using the organization resources. The profit center has the significant control on the amount of the invested capital.

Therefore, Option (B) is correct.

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Usually, the decision to notify parties outside the client’s organization regarding noncompliance with laws and regulations is t

Daniel [21]

Answer:

Management

Explanation:

Sometimes in the course of discharging his duties, an auditor might discover a case of non-compliance with laws and regulations. In such situations, he is expected to report the issue to the governing body or management of the organization who in turn notify parties outside the client's organization. This might imply reporting to the appropriate law enforcement agencies who now investigate the matter.

The auditor should ensure that he is keeping to the code of confidentiality before proceeding on such a case. The management is expected to review the report to determine if the action was indeed non-compliant with the laws before proceeding on the next call of action.

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2 years ago

An elected official is: A: appointed to his job. B: voted into her job. C: assigned a job by a superior. D: anyone who works for

Natalka [10]

Voted into her job.

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1 year ago

Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only o

-Dominant- [34]

Answer:

Explanation:

Alpha = $195

Beta = $150

total production capacity = 123,000 pounds

raw materials = $5 per pound

Production costs per unit Alpha Beta

direct materials $40 $15

direct labor $34 $28

variable manufacturing overhead $22 $20

fixed manufacturing overhead $30 $33

variable selling expenses $27 $23

common fixed expenses $30 $25

total cost per unit $183 $144

1) What contribution margin per pound of raw material is earned by Alpha and Beta?

Alpha Beta

contribution margin $72 $64

contribution margin per pound $9 $21.33

2) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?

Alpha Beta

contribution margin $72 $64

contribution margin per pound $9 $21.33

production (in units) 2,500 75,000

profits $30,000 $450,000

total profits $480,000

3) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

Alpha Beta

contribution margin $72 $64

contribution margin per pound $9 $21.33

production (in units) 2,500 75,000

contribution margin $180,000 $4,800,000

total contribution margin $4,980,000

4) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials?

If it wants to increase the production of Alpha, it could pay as much as ($195 - $183) / 8 = $1.50 extra per pound if it wants to maximize profits. Maximum price = $6.50 per pound. At this point, marginal revenue = price.

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2 years ago

Jill took $50,000 that she had in savings and started her own business. If left in investments she would have earned $5,000 this

vova2212 [387]

Answer: Economic cost = $175,000

Accounting cost = $100,000

Explanation: The difference between economic cost and accounting coast is economic cost takes into consideration the next best alternative foregone, that is, opportunity cost whereas accounting cost only sums cost incurred. In the given case the interest on savings and salary of job is the opportunity cost of Jill.

Therefore,

Economic cost = $5000 + $70,000 + $80,000 + $40,000 - $20,000=$175,000

Accounting cost = $80,000 + $20,000 = $100,000

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2 years ago

Rachelle is the owner of a full-service car wash. For the month of December she paid $2,000 in rent, $700 in utilities, $2,950 i

Ilya [14]

Answer:

Total Fixed costs: $

Rent 2,000

Utilities 700

Salaries 2,950

Advertising 50

Total fixed cost 5,700

Contribution per car = Selling price - Unit variable cost

= $10.50 - $2.50

= $8.00 per car

Break-even point in full-service car

= Total fixed cost

Contribution per car

= $5,700

$8.00

= 712.5 = 713 cars

Explanation:

Break-even point in full-service car equals total fixed cost divided by contribution per car. Contribution per car is selling price minus variable cost per car.

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2 years ago