Answer:
a. decrease by $58,800 per month
Explanation:
The computation is shown below;
Particulars Amount
Contribution from product X $94,800 ($28 - $22) × 15,800 units
Less: Fixed cost -$108,000
Net loss avoided -$13,200
Non-avoidable fixed cost $72,000
The Total cost in case the product fall $58,800
Hence, the correct option is a.
why does this app suck i a way? i looked at this question: The managers want to know how many boxes of 12 cookies can be filled with the 3,258 cookies that have been baked. Fatima starts by subtracting the largest number of boxes she can easily calculate. She knows that 100 boxes of 12 cookies can be put into one crate. How many crates can be filled from the total of 3,258 cookies?
then an expert verified its 3 so i put it in and it said incorrect. am i not getting something or is it maybe incorrect in my platform?
Answer:
this app is fine, it has helped me a lot
Explanation:
BUT, you shouldnt rely on it all the time, unless you're genuinely struggling on grasping a topic I suggest trying to teach to yourself.
QS 23-11 Selection of sales mix LO P3 Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,700 production hours available. Contribution margin is $6 for product X and $5 for product Y. 1. Calculate contribution margin per production hour. 2. What is the most profitable sales mix for this Company
Answer:
Contribution margin per production hour
Product X = $12
Product Y = $15
Explanation:
Part 1
Contribution margin per production hour
Contribution margin per production hour = Contribution ÷ Time to produce one product
Therefore,
Product X = $6 ÷ 0.5
= $12
Product Y = $5 ÷ 0.33
= $15
Part 2
The Demand Units of Product X and Product Y are missing so the calculation of profitable sales mix is impossible.
This mix would have been calculated by :
Manufacturing all the units of Product Y since Y has the highest contribution margin per production hour (demand for Y × hours required per unit)With the remainder of hours out of 4,700 after producing all of Product Y demand, we would then produce Product X.
Germany is capital abundant country and Japan is labor abundant country. If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that Question 22 options: Japan will export computers in exchange for beer. Germany will export computers in exchange for beer. Germany is too small to be of economic interest to Japan. Computers and beer don't mix, so trade cannot increase either country's well-being.
Answer:
If computers are produced mostly by capital and beer is produced mostly by labor, the H-O model predicts that
Germany will export computers in exchange for beer.
Explanation:
The H-O model or Heckscher-Ohlin theory is an economic model about the comparative advantages of nations in international trade. The model tries to explain the equilibrium of trade existing between two countries that have varying specialties and natural resources. According to the H-O model, countries export more goods and services for which they have plenty resources than they do for goods and services for which they have scarce resources. For example, if a country has capital in abundance, it will export more of capital-intensive products while it will import labor-intensive products, because it has scarce labor resources.
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.4 direct labor-hours.
The company's total manufacturing overhead for the year is expected to be $1,632,000.
Required:
1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? Product H Product L Overhead cost per unit
1-b. Compute the total amount of overhead cost that would be applied to each product Product H Product L Total Total overhead cost
2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $816,000 assigned to Product H and $816,000 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? (Round your answers to 2 decimal places.)
Product H Product L
Overhead cost per unit
Answer:
1a. Product H $16,000
Product L $3,200
1b. Product H $1,360,000
Product L $272,000
Total $1,632,000
2. Product H $20.40
Product L $102.00
Explanation:
1-a. Calculation for how much overhead cost per unit would be applied to each product
Product H Product L
Number of units produced 40,000 8,000( a)
Direct labor-hours per unit (b) 0.40 0.40 (b)
(a) × (b)=Total direct labor-hours 16,000 3,200 Total =$19,200
Therefore Amount of hoverhead cost per unit applied to each product is :
Product H $16,000
Product L $3,200
1-b. Computation for the total amount of overhead cost that would be applied to each product
Product H Product L Total
Manufacturing overhead applied per unit
0.40 DLH per unit × $85.00 per DLH= $34.00 (a)
Number of units produced 40,000 8,000 (b)
(a) × (b)=Total manufacturing overhead applied $1,360,000 $272,000
Total=Product H $1,360,000+Product L $272,000
Total= $1,632,000
Predetermined overhead rate of $ 85.00 per DLH is calculated as:
Total manufacturing overhead $ 1,632,000(a)
Total direct labor-hours 19,200 DLHs(b)
(a) ÷ (b) =Predetermined overhead rate $ 85.00 per DLH
Therefore the total amount of overhead cost that would be applied to each product is :
Product H $1,360,000
Product L $272,000
Total $1,632,000
C. Calculation for how much overhead cost per unit would be assigned to each product
Product H Product L Total
Total manufacturing overhead assigned (a)
$816,000 $816,000 =$1,632,000
Number of units produced (b) 40,000 8,000
(a) ÷ (b) =Manufacturing overhead per unit $20.40 $102.00
Therefore the amount of overhead cost per unit would be assigned to each product is :
Product H $20.40
Product L -$102.00