Plowin' Supply plans to make 15,000 tractors at its plants. Fixed costs are $600,000 and variable costs are $200 per tractor. What is the average cost per tractor?(a) $200(b) $240(c) $40(d) $75

Answers

Answer 1

Answer:

Answer:

b) 240

Explanation:

The fixed costs to the production of the tractors are $600.000, independently if the company makes 1 or none tractor, the company must spend $600.000 variable cost are attached to the number of tractors that the company will make. In this case the company will produce $15.000 and the variable cost is $200, its a reason why you must multiply those numbers. Excersise:

Total cost of produce n tractor = fixed costs+( number of tractors * variable cost)

where n = 15.000

Total cost of produce n tractor =$600.000+(15.000*$200)

Total cost of produce n tractor =$600.000+ ($3.000.000)

Total cost of produce 15.000 tractors = 3.600.000

Now that you have the total cost, you have to divide in the number of tractor to fin the average cost per quantity:

Average cost= (Total cost of 15.000 tractors/number of tractors)

Average cost= (3.600.000/15.000)= $240

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Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.

Answers

Answer and Explanation:

The Preparation of direct materials budget for the second quarter is prepared below:-

Rida, Inc.,

Direct materials budget

For the second quarter

Particulars Amount

Production Unit 240,000

Raw material per unit 0.60

Raw material needed for production 144,000

(240,000 × 0.60)

Add: Desired ending inventory 9,450

(52,500 × 0.6 × 30%)

Total amount 153,450

Less: Beginning inventory ($43,200)

Direct material purchase $110,250

Cost per pound $175

Direct material purchase cost $19,293,750

Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.

What is an example of a secured credit?

Answers

An example of a secured credit is home mortgage or a car loan.

Credit refers to the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

When any loan is secured, the lender has established a lien against an asset that belongs to the borrower. With mortgages and car loans, the house or car can be seized and liquidated by the lender in the event of default.

Therefore, one example of a secured credit is home mortgage or a car loan.

To know more about credit, click below-

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Answer: C: Mortgage

Explanation:

A common example of a secured line of credit is a home mortgage or a car loan. When any loan is secured, the lender has established a lien against an asset that belongs to the borrower. With mortgages and car loans, the house or car can be seized and liquidated by the lender in the event of default.

The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.87 percent based on semiannual compounding. How many years is it until this bond matures? a. 10.49 years b. 13.77 years c. 12.64 years d. 11.08 years e. 15.42 years

Answers

Answer:

13.77 years

Explanation:

The maturity period is the period taken for the Bonds' Market Price equals its Face Value.

Calculation of the maturity period :

PV = - $394.47

PMT = $0

YTM = 6.87 %

P/YR = 2

FV = $1,000

N = ?

Using a financial calculator to input the values as above, the number of periods interest is accrued on the bond (N) is 27.54 thus the number of years will be 13.77 (27.54 ÷ 12) .

Last year, Dora, Inc. produced 70,000 widgets and incurred $210,000 of variable costs and $196,000 of fixed costs. Dora has received a special order from a foreign customer for 3,000 widgets. Dora has sufficient capacity to fill the order without jeopardizing regular sales. Dora would incur $3,150 in additional shipping charges to fulfill this special order. If Dora wants to break even on this order, what should the unit selling price be:A : $4.05
B : $6.85
C : $5.80
D : $3.00

Answers

Answer:

B : $6.85

Explanation:

Because Dora, Inc. has enough capacity to fill the special order in excess of regular sales volume, the fixed cost of its remain unchanged at $196,000.

Widget variable cost per unit of Dora is 210,000/70,000 = $3

To break even on the special order, the respective total sales amount has to cover all related cost, including allocated fixed cost, variable cost as well as additional shipping charges. Putting all the numbers together, we have:

3,000 x P - 196,000 x (3,000/73,000) - 3 x 3,000 - 3,150 = 0 with P is the selling price.

Solve the equation we get P = 6.73. Option answer A,C or D will result in loss for this special order. So, the suitable answer is B.

Answer:

$4.05

Explanation:

How could job characteristics theory guide Andrea as she considers ways of combining areas for the staffers? Is there a way to give the new versions of their jobs a higher satisfaction potential than the pre-downsizing versions?

Answers

Answer:

Job characteristics theory could guide Andrea as she considers ways of combining areas for the staffers by developing a more challenging versatile job functions that will stimulate performance.

Explanation:

The Job Characteristics Model is a theory that is based on the idea that a task in itself is the key to the employee's motivation. In short, a boring and monotonous job is disastrous to an employee's motivation whereas a challenging, versatile job has a positive effect on motivation.

According to the tenets of job characteristics model, a more challenging and versatile job will give higher satisfaction potential than the pre-downsizing versions which could be counter productive and depressing.

Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain

Answers

Answer:

True

Explanation:

Given a certain production level, cost minimization is equal to product maximization. Cost minimization refers to the production level where average total cost per unit is lowest. On the other hand, production maximization refers to maximizing product output given certain restraints, e.g. amount of raw materials, number of labor hours, etc. Product maximization basically refers to the efficiency of production.

If someone can achieve product maximization and cost minimization, they should be maximizing profit.

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