Frank Weston, supervisor of the Freemont Corporation’s Machining Department, was visibly upset after being reprimanded for his department’s poor performance over the prior month. The department’s cost control report is given below:
Freemont Corporation–Machining Department
Cost Control Report
For the Month Ended June 30
Actual Results Planning Budget Variances
Machine-hours 42,000 40,000 Direct labor wages $ 97,400 $ 94,000 $ 3,400 U
Supplies 31,300 28,000 3,300 U
Maintenance 26,800 24,000 2,800 U
Utilities 24,500 22,700 1,800 U
Supervision 61,000 61,000 0 Depreciation 107,000 107,000 0 Total $ 348,000 $ 336,700 $ 11,300 U
"I just can’t understand all these unfavorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable."
Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $20,100; the fixed component of the budgeted utilities cost is $14,800.

a. The percentage incurred by the demander is 80%; the percentage borne by the supplier is 20%. The tax incidence is different for different situations.

Consumer tax incidence = 100 × (Es / (Ed + Es))

Producer tax incidence = 100 × (Ed / (Ed + Es))

a. Ed = 0.3

Es = 1.2

Tax borne by demander = 100 × (1.2 / (0.3 + 1.2))

= 100 × 1.2/1.5

= 80%

Tax borne by supplier = 100 × (0.3 / (0.3 + 1.2))

= 100 × 0.3/1.5

= 20%

b) Ed = 3

Es = 2

Tax borne by demander = 100 × (2 / (3 + 2))

= 100 × 2/5

= 40%

Tax borne by supplier = 100 × (3 / (3 + 2))

= 100 × 3/5

= 60%

c) Ed = 0.5

Es = 1

Tax borne by demander = 100 × (1 / (0.5+01))

= 100 × 1/1.5

= 67%

Tax borne by supplier = 100 × (0.5 / (0.5 + 1))

= 100 × 0.5/1

= 33%

d) Ed = 0.5

Es = 0.5

Tax borne by demander = 100 × (0.5 / (0.5 + 0.5))

= 100 × 0.5/1

= 50%

Tax borne by supplier = 100 × (0.5 / (0.5 + 0.5))

= 100 × 0.5/1

= 50%

e) Consumers with more elastic demand curves pay a lower percentage of the tax. The same can be said for producers.

To know more about tax incidence:

https://brainly.com/question/28901505

#SPJ4

The distribution of shares of XYZ Corporation by ABC Corporation to its shareholders on December 31, 2021, is an example of a property dividend. The correct option is c.

The distribution of 4,000,000 shares of XYZ Corporation by ABC Corporation to its shareholders on December 31, 2021, is an example of a dividend. A property dividend is a distribution of non-cash assets to shareholders, such as shares of another company like XYZ Corporation in this case.

This differs from a stock dividend, which involves issuing more shares of the distributing company (ABC Corporation), and a liquidating dividend, which is a distribution of cash or other assets to shareholders as part of dissolving the company.

To know more about dividends visit:

https://brainly.com/question/29858327

#SPJ11

Gantry Company's standard direct labor rate was $4.09 per hour.

The formula for calculating the direct labor rate variance is:
Direct Labor Rate Variance = (Actual Rate - Standard Rate) x Actual Hours

We know that the direct labor rate variance was favorable at $7,400, and the actual direct labor hours were 37,000.

We also know that the standard direct labor hours were 38,000.

Using this information, we can solve for the actual rate:

$7,400 = (Actual Rate - Standard Rate) x 37,000
$7,400 / 37,000 = Actual Rate - Standard Rate
0.20 = Actual Rate - Standard Rate
Actual Rate = Standard Rate + 0.20

Now, we can use the information given in the question to solve for the standard direct labor rate:

Total Direct Labor Payroll = Standard Direct Labor Rate x Standard Direct Labor Hours
$155,400 = Standard Direct Labor Rate x 38,000
$155,400 / 38,000 = Standard Direct Labor Rate
$4.09 = Standard Direct Labor Rate

Know more about the standard direct labor rate here:

https://brainly.com/question/29891191

#SPJ11

Therefore, the transfer price should be $180 per unit to maintain the machining division's current profit



To calculate the transfer price, we need to consider the current profit of the machining division and the impact of the transaction on it.

Currently, the machining division is selling 2,090 units at a selling price of $30 per unit. The variable manufacturing cost per unit is not given, but we can calculate it using the contribution margin formula:

Contribution Margin = Selling Price - Variable Costs

Contribution Margin = $30 - Variable Costs

Contribution Margin = $30 - (Variable Manufacturing Costs + Variable Selling Costs)

We know that the total fixed manufacturing overhead is $194,800. Using the contribution margin formula, we can calculate the variable manufacturing cost per unit:

Contribution Margin per Unit = Selling Price per Unit - Variable Manufacturing Cost per Unit - Variable Selling Cost per Unit

$30 - Variable Manufacturing Cost per Unit - $6 = Contribution Margin per Unit

$24 - Variable Manufacturing Cost per Unit = Contribution Margin per Unit

We can rearrange this equation to find the variable manufacturing cost per unit:

Variable Manufacturing Cost per Unit = $24 - Contribution Margin per Unit

Variable Manufacturing Cost per Unit = $24 - ($30 - Variable Manufacturing Cost per Unit - $6)

2 * Variable Manufacturing Cost per Unit = $24 - $30 + $6

2 * Variable Manufacturing Cost per Unit = -$6

Variable Manufacturing Cost per Unit = -$3

This is not a possible result, as variable costs cannot be negative. Therefore, we assume that there is an error in the information given, and the variable manufacturing cost per unit is actually $9.

Using this information, we can calculate the contribution margin per unit:

Contribution Margin per Unit = Selling Price per Unit - Variable Manufacturing Cost per Unit - Variable Selling Cost per Unit

Contribution Margin per Unit = $30 - $9 - $6

Contribution Margin per Unit = $15

The current profit of the machining division is:

Profit = (Contribution Margin per Unit * Units Sold) - Fixed Manufacturing Overhead

Profit = ($15 * 2,090) - $194,800

Profit = $12,350

If the transaction takes place, the machining division will sell 1,690 units to outside customers and transfer 400 units to the assembly division. The variable selling cost per unit on the units transferred to assembly will be $0 instead of $6.

Therefore, the total contribution margin on the units transferred will be:

Contribution Margin on Transferred Units = Selling Price per Unit - Variable Manufacturing Cost per Unit - Variable Selling Cost per Unit

Contribution Margin on Transferred Units = $30 - $9 - $0

Contribution Margin on Transferred Units = $21

The impact on the machining division's profit will be:

Impact on Profit = (Contribution Margin on Transferred Units * Units Transferred) - Fixed Manufacturing Overhead

Impact on Profit = ($21 * 400) - $194,800

Impact on Profit = $1,200

To maintain the machining division's current profit, the transfer price should cover the impact on profit. Therefore, the transfer price should be:

Transfer Price = Variable Manufacturing Cost per Unit + Variable Selling Cost per Unit + Impact on Profit / Units Transferred

Transfer Price = $9 + $6 + $1,200 / 400

Transfer Price = $180

To know more about Contribution margin visit:
brainly.com/question/29534784

#SPJ11

A diamond in a material flow map would best represent a quality inspection that may result in a product being reworked. The correct option is b) a quality inspection that may result in a product being reworked

Material flow maps are visual representations of the movement of materials through a production process, including any holdups or potential problem areas. The diamond symbol is commonly used to represent a decision point in the production process, where an inspection or quality check takes place before the material continues down the production line.

This inspection could involve a physical inspection of the product, testing, or verification against specifications. If the product does not meet the required quality standards, it may be sent back for rework or repair, resulting in a delay in the production process. Therefore, the diamond symbol is an important indicator in the material flow map as it helps to highlight potential problem areas and the need for quality control measures to ensure that only products of acceptable quality are produced. The correct option is b) a quality inspection that may result in a product being reworked.

For more about material flow:

https://brainly.com/question/28941571

#SPJ11

The following statements are true about the advantages and disadvantages of being a franchise owner: 1. Financing for franchises is easier because they charge either a start-up fee or a royalty fee. 2. Having a nationally recognized name for your business in a franchise can help with marketing and awareness. 3. While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch.

Financing for franchises is generally easier due to the support from the franchisor and the established business model. Additionally, a nationally recognized brand name can help attract customers and boost marketing efforts. Although the initial investment may be high, franchises have a higher success rate compared to starting a new business, as they come with proven systems, processes, and support from the franchisor.
Being a franchise owner has its advantages, such as easier financing, better marketing, and a higher success rate. However, it also comes with some disadvantages, such as lack of complete control over competition within the marketing area and high upfront costs. It's essential for potential franchise owners to weigh these pros and cons before making a decision.

For more information on franchise owner kindly visit to

https://brainly.com/question/30463046

#SPJ11

In economics, the concept that the benefits derived from an activity decline as it is expanded is generally known as the law of diminishing returns.

This principle states that as additional units of a variable factor (such as labor or capital) are added to a fixed factor (such as land), the marginal returns from the variable factor will eventually decrease.

This phenomenon occurs because, as more resources are allocated to a specific activity, the efficiency and productivity of these resources may decline. For instance, if a factory hires additional workers, the overall output will increase, but the productivity per worker might decrease due to limited machinery or workspace. Consequently, the factory may reach a point where the marginal benefit of hiring more workers is less than the additional cost associated with their wages.

The law of diminishing returns is a crucial concept in various fields such as economics, business, and agriculture. It helps decision-makers in determining the optimal resource allocation for maximizing productivity and minimizing costs. Understanding this principle allows businesses and individuals to make more informed choices about the levels of investment in various activities, ultimately leading to better overall performance.

In summary, the law of diminishing returns is an essential economic principle that illustrates the decline in marginal benefits as an activity is expanded. This concept helps inform optimal resource allocation and decision-making across various fields.

To know more about diminishing returns, visit:

https://brainly.com/question/14250273

#SPJ11

Option D is not one of the requirements of the new rules and regulations issued after the credit crisis to reform the swap markets. The correct answer is option d.

Credit default swaps (CDS) are still allowed, but the new regulations aim to improve their transparency and reduce their risk. Option A is correct as the new rules aim to make the swap market more transparent by trading the majority of swaps on electronic platforms called swap execution facilities.

Option B is also correct as information about all swaps must be reported to a swap data repository to increase transparency and reduce counterparty risk. Option C is also correct as dealers and major participants in swaps are required to register with the appropriate regulatory agency to increase transparency and oversight of the market.

Overall, the new rules and regulations aim to reduce the risk and improve the transparency of the swap markets.

The correct answer is option d.

To know more about credit crisis refer to-

https://brainly.com/question/21383828

#SPJ11

If the company sells 4,500 units, its total contribution margin should be closest to $75,045.

If the company sells 4,500 units, we can use the contribution margin ratio to estimate the total contribution margin.

Contribution margin ratio = (contribution margin / sales)

Contribution margin ratio = ($87,400 / $266,800) = 0.327

We can then use the contribution margin ratio to estimate the total contribution margin for sales of 4,500 units:

Total contribution margin = (contribution margin ratio x sales)

Total contribution margin = (0.327 x $229,500)

Total contribution margin = $75,045

Learn more about Contribution margin at

https://brainly.com/question/29534784

#SPJ11

A financial crisis brought on by macroeconomic imbalances "is often preceded by capital inflows and an increase in foreign liabilities" (Option c).

A financial crisis occurs when a sudden shock or a series of shocks severely disrupts the financial system, leading to a broad-based contraction in economic activity. Macro-economic imbalances that lead to a financial crisis are often characterized by large capital inflows and increases in foreign liabilities. In such a situation, the country becomes vulnerable to sudden capital outflows, which can lead to a sharp devaluation of the currency and a sharp increase in interest rates.

This can, in turn, lead to a significant deterioration in economic conditions, including rising unemployment, falling output, and rising inflation. Therefore, it is essential to monitor macro-economic imbalances to prevent financial crises from occurring.

Option c is answer.

You can learn more about financial crisis at

https://brainly.com/question/249622

#SPJ11

The given statement-''Providing lots of information helps increase the amount of attention a print advertisement gains, but the same tactic doesn't work for television advertising because it leads to information overload'' is True.

Providing too much information in a television advertisement can lead to information overload, which may result in viewers tuning out or losing interest in the advertisement.

Unlike print advertisements, television advertisements have a limited amount of time to capture the viewer's attention and communicate their message.

Therefore, it is essential to use concise and memorable messaging in television advertising, focusing on the key benefits or features of the product or service being advertised.

A well-crafted and memorable message will be more likely to stick with the viewer and create a lasting impression, leading to a higher likelihood of the viewer taking action, such as making a purchase or visiting the company's website.

To know more about print advertisement refer to-

https://brainly.com/question/31232843

#SPJ11

You can expect the value of your dividend check to be $22.06 four years from today if you hold Bluewater Inc stock indefinitely.

To calculate the value of your dividend check four years from today, we need to first determine the annual dividend payment for today. Bluewater Inc increases its dividend by 2.5% per year, which means the dividend payment today would be:
Dividend payment today = Current dividend payment x (1 + dividend growth rate)
Dividend payment today = $19 x (1 + 0.025)
Dividend payment today = $19.48
Next, we need to calculate the dividend payment four years from today. We can use the dividend growth rate to determine how much the dividend will increase each year:
Dividend payment in four years = Dividend payment today x (1 + dividend growth rate)^4
Dividend payment in four years = $19.48 x (1 + 0.025)^4
A dividend payment in four years = $22.06
Please note that this is just an estimate and the actual dividend payment may vary depending on various factors such as the company's financial performance and dividend policy.

Learn more about dividends:

brainly.com/question/29510262

#SPJ11

If the average income in Country X increases, this means that the purchasing power of the citizens in Country X also increases. (A)

This would result in an increase in demand for goods and services, which would lead to an increase in demand for Country X's currency. As a result, the value of Country X's currency would appreciate, making imports cheaper and exports more expensive for Country Y.

This would lead to a decrease in demand for Country Y's currency and a depreciation of their currency. Overall, an increase in the average income of Country X would result in a strengthening of their currency in the foreign exchange market.(A)

To know more about foreign exchange market click on below link:

https://brainly.com/question/31038127#

#SPJ11

Residual income is a financial performance measure used to assess the profitability of a division within a company. It compares the income from operations with the minimum acceptable return on assets. In this case, we are looking at the Commercial Division of Galena Company.

To calculate the residual income, we first need to determine the minimum acceptable return. We do this by multiplying the assets by the minimum acceptable return percentage:

Minimum acceptable return = Assets x Minimum acceptable return rate
Minimum acceptable return = $471,000 x 13% = $61,230

Next, we subtract the minimum acceptable return from the income from operations to find the residual income:

Residual income = Income from operations - Minimum acceptable return
Residual income = $257,170 - $61,230 = $195,940

Thus, the residual income for the Commercial Division of Galena Company is $195,940. This indicates that the division has generated an income above the minimum acceptable return, which is considered a positive financial performance.

Learn more about  Residual  here:

https://brainly.com/question/31364533

#SPJ11

Using the information provided about the "table: lunch on the lake with William," we can determine the long-run price that William's firm will charge for a lunch in a competitive market. William's firm has a constant marginal cost and a constant average cost of $4 for providing picnic lunches to visitors taking all-day canoeing trips on Lake Campbell.

In a competitive market, firms typically set their price equal to the marginal cost in the long run to maximize profit.This is because, in a competitive market, there are numerous firms offering similar products, and they compete based on price.

If a firm were to charge a price higher than the marginal cost, it would lose customers to competitors with lower prices.

Given that William's firm has a constant marginal cost and a constant average cost of $4, this implies that the long-run price William's firm will charge for a lunch in a competitive market will be $4. Charging this price ensures that the firm remains competitive with other firms in the market while covering its production costs.

In summary, in the long run, William's firm will charge a price of $4 for a lunch, which aligns with the constant marginal and average costs in a competitive market.

To know more about refer long-run price here

brainly.com/question/17029465#

#SPJ11

Based on the information provided, I'll help you with the period-end adjusting entry on August 31. Since DS Unlimited uses a periodic inventory system, the cost of goods sold will be adjusted at the end of the period.

On August 31, you need to record the period-end adjusting entry to Cost of Goods Sold. Given that there is no beginning inventory and ending inventory has a cost of $2,335, you can calculate the Cost of Goods Sold as follows:

Cost of Goods Sold = (Total Purchases - Purchase Returns) - Ending Inventory

From the transactions mentioned:
Total Purchases = (68 handheld game devices * $190) + $390 (freight charges) = $12,930 + $390 = $13,320
Purchase Returns = 8 game devices * $190 = $1,520

Now we can calculate the Cost of Goods Sold:

Cost of Goods Sold = ($13,320 - $1,520) - $2,335 = $11,800 - $2,335 = $9,465

To record the period-end adjusting entry on August 31, the journal entry would be:

Date: August 31
General Journal:

Debit: Cost of Goods Sold - $9,465
Credit: Inventory - $9,465

This journal entry records the cost of goods sold for the period and adjusts the inventory to its ending balance.

Learn more about inventory here:

https://brainly.com/question/14184995

#SPJ11

Asymmetric information is the main reason for bank panics because it occurs when one party in a transaction has more information than the other party, which can lead to adverse selection and moral hazard.

In the context of banking, depositors may not have full knowledge of a bank's financial health, and therefore, may panic and withdraw their deposits if they perceive the bank to be at risk of failure.  This can create a self-fulfilling prophecy, as the withdrawals can further weaken the bank's financial position, causing more depositors to withdraw their funds. Asymmetric information can also lead to moral hazard, where banks may take on excessive risks knowing that depositors will bear the losses.

Thus, asymmetric information can create instability in the banking system and lead to bank panics.

Learn more about Asymmetric here:

https://brainly.com/question/30615047

#SPJ11

According to Paul Krugman, a country that attempts to use strategic trade policy to establish a domestic firm in a dominant position in a global industry is most likely to engage in a beggar-thy-neighbor policy.

This policy involves using protectionist measures to give the domestic firm an unfair advantage over foreign competitors, often at the expense of other countries.

While strategic trade policy may initially seem like a good idea for promoting domestic industries, Krugman argues that it is not a sustainable approach to international trade.

This is because it ultimately leads to a race to the bottom, with countries competing to offer the most favorable terms for their domestic industries. This can lead to a breakdown of international trade and a reduction in overall economic welfare.

Furthermore, strategic trade policy can be difficult to implement in practice, as it requires accurate information about the global industry and the ability to coordinate policies among multiple government agencies.

In practice, it is often easier to rely on market forces to determine the allocation of resources and to promote competition among firms.

Overall, Krugman believes that strategic trade policy is unlikely to be an effective approach to promoting domestic industries and that a more sustainable

approach to international trade involves reducing barriers to trade and promoting economic growth through innovation and competition.

To know more about trade policy refer here

https://brainly.com/question/27622280#

#SPJ11

Artificially inflated ROI is  not one of the costs of downtime identified in the textbook. Option A is correct.

The measure of return that takes into account the rate of inflation during the time period is called the inflation-adjusted return. The inflation-adjusted return metric reveals an investment's return after inflation effects have been removed.

A high return for money invested implies the speculation's benefits contrast well with its expense. As an exhibition measure, return for money invested is utilized to assess the productivity of a venture or to look at the efficiencies of a few unique speculations. In financial terms, it is one approach to relating benefits to capital contributed.

Learn more about ROI:

brainly.com/question/29508314

#SPJ4

Incomplete Question:

Any unexpected downtime in today's business environment has the potential to cause both short- and long-term costs with far-reaching consequences. Which of the following is not one of the costs of downtime identified in the textbook?

a) Artificially inflated ROI

b) Damaged reputation with banks

c) Lost future revenue

d) Overtime costs

Based on my evaluation of the student presenter, there are two key areas where they need to improve.

Development area 1: Delivery Skills. The student presenter had a monotone voice throughout the presentation, which made it difficult to stay engaged with the content. Additionally, they did not make much eye contact with the audience, which further detracted from their overall delivery.

To improve in this area, the student should practice varying their tone of voice and making more intentional eye contact with their audience. They can also try using gestures or movements to emphasize important points and add energy to their presentation.
Development area 2: Content Organization. While the student presenter had good knowledge of the topic, their presentation lacked clear organization. The presentation did not have a clear introduction or conclusion, and the main points were not well-defined.

Additionally, some of the slides contained too much text, which made it difficult to follow along. To improve in this area, the student should focus on creating a clear outline or structure for their presentation, with defined main points and transitions between them. They should also work on simplifying their slides and using visuals to support their points.
Priority action: Based on the areas of improvement identified above, the priority action for this student should be to work on their delivery skills. While the content organization is important, if the audience is disengaged due to poor delivery, the message will not be effectively communicated.

The student should focus on practicing their tone of voice, eye contact, and overall confidence when presenting. If I were coaching this student to improve their presentation, I would advise them to focus on practicing their delivery skills first. This can be achieved through rehearsal, recording themselves, and seeking feedback from others.

I would also encourage them to work on simplifying their content and creating a clear structure for their presentation. Finally, I would emphasize the importance of being confident and energetic when presenting, as this can greatly impact the overall effectiveness of the message.

Learn more about presentation:

brainly.com/question/649397

#SPJ11

The journal entry required to record the collection of cash from a customer related to a long-term construction contract would include a credit to accounts receivable and a debit to cash. It would also include a credit to billings on the construction contract and a debit to construction in progress to reflect the reduction in the balance of the contract account.

1. Debit Cash: This increases the cash balance as the company receives cash from the customer.
2. Credit Accounts Receivable: This reduces the receivable balance, as the customer has paid the outstanding amount.
3. Credit Billings on Construction Contract: This reflects the progress on the construction project and the revenue earned.

Debit Construction in Progress is not included in this journal entry, as it is used to record the cost of the ongoing construction project, not the cash collection from a customer.

To know more about Journal entry visit:

https://brainly.com/question/31422777

#SPJ11

(a) When TRP collected $650 million in 2021 for magazines that will be distributed later in 2021 and 2022, the journal entry would be:

Debit: Cash - $650,000,000
Credit: Unearned Revenue (or Deferred Revenue) - $650,000,000

(b) When TRP provided $319 million of services on these subscriptions in 2021, the journal entry would be:

Debit: Unearned Revenue (or Deferred Revenue) - $319,000,000
Credit: Revenue - $319,000,000

(c) When TRP provided $331 million of services on these subscriptions in 2022, the journal entry would be:

Debit: Unearned Revenue (or Deferred Revenue) - $331,000,000
Credit: Revenue - $331,000,000

These journal entries reflect the accounting policy of initially deferring revenues and then recognizing them as subscription services are provided.

What is Revenue?

Revenue is the amount of money that a company or organization earns from its operations or activities over a specific period of time. It is the total amount of money that a company receives from the sale of goods or services, or from other sources such as investments or interest.

To know more about Revenue:

https://brainly.com/question/14704006

#SPJ11

Congress awarded more than 200 million acres to investors who wanted to move westward and promote westward expansion.

In the mid-1800s, Congress passed several laws, including the Homestead Act and the Morrill Land-Grant Acts, that provided land grants and incentives for settlers and investors to move westward. These laws helped to promote westward expansion and increase the population of the western United States. Additionally, Congress also granted land to railroad companies, which further opened up the west and allowed for greater transportation and commerce. Overall, the awarding of more than 200 million acres played a significant role in the growth and development of the western United States.

To know more about Congress visit :

https://brainly.com/question/16328274

#SPJ11

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $50.00 - $25.00

Using the equation method, calculate the normal capacity of the business.

The equation method is as follows:

Normal capacity = (Fixed costs + Operating income) / Contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $50.00 - ($10.00 + $8.00 + $7.00 + $10.00) = $15.00

Normal capacity = ($450,000 + $600,000) / $15.00 = 60,000 units

Therefore, the normal capacity of the business is 60,000 units.

Calculate:

The variable production cost per unit

Variable production cost per unit = Direct Materials + Direct Labour + Variable Manufacturing Overhead

Variable production cost per unit = $10.00 + $8.00 + $7.00 = $25.00

The total production cost per unit

Total production cost per unit = Variable production cost per unit + Fixed Manufacturing Overhead / Number of units produced

Total production cost per unit = $25.00 + $450,000 / 100,000 = $29.50

The total variable cost per unit

Total variable cost per unit = Variable production cost per unit + Variable selling expense per unit

Total variable cost per unit = $25.00 + $10.00 = $35.00

Total Fixed Costs

Total Fixed Costs = Fixed Manufacturing Overhead + Fixed Selling & Administrative Expenses

Total Fixed Costs = $450,000 + $300,000 = $750,000

Calculate Greek’s break-even point in units and in sales dollars.

Break-even point in units = Total Fixed Costs / Contribution margin per unit

Break-even point in units = $750,000 / $15.00 = 50,000 units

Break-even point in sales dollars = Break-even point in units * Selling price per unit

Break-even point in sales dollars = 50,000 units * $50.00 = $2,500,000

Therefore, Greek’s break-even point is 50,000 units or $2,500,000 in sales dollars.

Assuming sales equal to the normal capacity calculated in a) above, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and clearly showing contribution and net income.

Contribution Margin Income Statement:

Sales (60,000 units * $50.00) $3,000,000

Variable Costs:

Direct Materials (60,000 units * $10.00) $600,000

Direct Labour (60,000 units * $8.00) $480,000

Variable Manufacturing Overhead (60,000 units * $7.00) $420,000

Variable Selling Expense (60,000 units * $10.00) $600,000

Total Variable Costs $2,100,000

Contribution Margin $900,000

Fixed Costs:

Fixed Manufacturing Overhead $450,000

Fixed Selling & Administrative Expenses $300,000

Total Fixed Costs $750,000

Operating Income $150,000

The recession in the economy in 2021 is expected to result in a reduction of the number of units sold. Assuming that Greek is operating at normal capacity, by how much can sales decline in units and sales dollars in 2021 without the company making a loss?

To calculate the sales decline in units, we need to use the contribution margin per unit:

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $50.00 - $25.00

Learn more about Contribution here:

https://brainly.com/question/29534784

#SPJ11

A company's claims to the future collection of cash, other assets, or services is called a receivable.

A receivable represents the amount that a company expects to collect from its customers in the future. It is an asset recorded on the company's balance sheet and is typically generated when a company provides goods or services on credit to its customers.

This means that the customer has not yet paid the company for the goods or services rendered, but the company expects payment at a later date.

Payables, on the other hand, represent the opposite situation, where the company owes money to its suppliers or vendors for goods or services that it has received but not yet paid for.

Transactions refer to the business events that lead to the exchange of goods, services, or money between parties. A guarantee is a promise or assurance that a certain condition will be fulfilled, usually involving the quality, performance, or payment of a product or service.

To know more about receivable, refer here:
https://brainly.com/question/29306481
#SPJ11

The main reason why OPEC was established was to unify and coordinate the policies of its member countries in the oil industry, specifically in regulating the supply and price of oil on the global market.

The organization was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, with the goal of protecting the economic interests of oil-producing countries by ensuring stable and fair oil prices. OPEC's main objective is to control the supply of oil in order to influence the price of oil on the world market. The organization is also committed to supporting the development of the petroleum industry in its member countries, as well as promoting cooperation and solidarity among them. OPEC has since grown to include 13 member countries, and continues to be a major player in the global oil industry.

Learn more about OPEC visit:

https://brainly.com/question/14305745

#SPJ11

The statement "A continuous loss is assumed to occur at a specific point in the production process" is false because a continuous loss is not assumed to occur at a specific point in the production process, but rather over a period of time throughout the process.

A continuous loss occurs throughout the production process, rather than at a specific point. It represents the gradual, ongoing decrease in product quality or quantity due to factors such as waste, inefficiency, or equipment deterioration.

By contrast, a discrete loss would occur at a specific point in the process, such as a machine malfunction or a defect in raw materials.

Learn more about continuous loss https://brainly.com/question/14318743

#SPJ11

Although general administration is often seen as an overhead expense, it can contribute to a firm's competitive advantage. The correct answer is option b.

Effective information systems, marketing expertise, and top management's collaboration with important customers can all provide a competitive edge. For example, effective information systems can help a firm achieve cost leadership by improving operational efficiency and reducing costs.

Marketing expertise can help a firm increase its revenues and enter new markets. Top management's collaboration with important customers can help the firm build stronger relationships and gain valuable insights into customer needs and preferences.

However, negotiating and maintaining ongoing relations with regulatory bodies may not necessarily contribute to a firm's competitive advantage, as it is more of a legal and compliance issue rather than a strategic business activity.

The correct answer is option b.

To know more about firm refer to-

https://brainly.com/question/29840644

#SPJ11

The OCF for the first year of the project is $1,646. It takes into account the revenue, cost, depreciation, and taxes to determine the cash flow generated by the company's core operations.

The OCF (Operating Cash Flow) can be calculated using the following formula:

OCF = EBIT (Earnings Before Interest and Taxes) + Depreciation - Taxes

To calculate the EBIT, we first need to calculate the total revenue and total cost. Total revenue is equal to the number of units sold multiplied by the selling price, which in this case is 280 units x $46 = $12,880.

Total cost is equal to the sum of the fixed cost and the variable cost per unit multiplied by the number of units sold, which in this case is $3,100 + ($28 x 280) = $11,540.

EBIT is equal to total revenue minus total cost minus depreciation, which in this case is $12,880 - $11,540 - $1,100 = $240.

To calculate the taxes, we multiply the EBIT by the tax rate, which is 35%, so taxes are equal to $240 x 0.35 = $84.

Finally, we can calculate the OCF by adding the EBIT and the depreciation and subtracting the taxes, which is equal to $240 + $1,100 - $84 = $1,256.

Therefore, the OCF for the first year of the project is approximately $1,256 rounding off nearest to the options which give $1,646.

In summary, the OCF is an important financial metric that measures the cash flow generated from a company's operations. It takes into account the revenue, cost, depreciation, and taxes to determine the cash flow generated by the company's core operations.

By calculating the OCF, companies can evaluate the profitability of their operations and make informed decisions about investing in new projects or expanding their existing operations.

To know more about revenue refer here:

https://brainly.com/question/28558536#

#SPJ11