The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change

Answers

Answer 1

Answer:

Answer: D. both the fixed costs and the variable cost per unit may change

Explanation:

It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.

Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.

In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.

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Prepare the issuer’s journal entry for each of the following separate transactions.a. On March 1, Atlantic Co. issues 44,000 shares of $5 par value common stock for $302,000 cash.b. On April 1, OP Co. issues no-par value common stock for $73,000 cash.c. On April 6, MPG issues 2,300 shares of $15 par value common stock for $42,000 of inventory, $150,000 of machinery, and acceptance of a $92,000 note payable.
1. How is inflation measured? Fill in the blanks to complete the passage about the CPI and the GDP deflator. The Consumer Price Index (CPI) and the GDP deflator are both price indices, so they both serve as measures of inflation. However, the CPI uses a smaller basket of goods. The GDP deflator aims to take into account all final goods and services, whereas the CPI only includes goods and services sold to –. So, for instance, prices on farm equipment are included in the – but not in the –.
Assume a firm has earnings before depreciation and taxes of $620,000 and depreciation of $320,000. a. If it is in a 35 percent tax bracket, compute its cash flow. b. If it is in a 20 percent tax bracket, compute its cash flow.
Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods, CIF port of Amsterdam. The seller refused to ship. The buyer brings an action for damages. In the US, a court would probably rule

One of Carl's department employees was severely injured on the job. Carl has called in psychological counselors to talk to the other employees and scheduled a series of safety trainings for the department to be completed by the end of the week. He has also asked the HR personnel to talk to the department about the disability insurance that the company offers and make sure that his employees know what is available. Carl is using ________ to help cope with the stress caused by his employee's injury.A) demandsB) action researchC) resourcesD) innovationE) appreciative inquiry

Answers

Answer: resources

Explanation: In simple words, resources refers to assets that are owned and used by a company to operate efficiently in the market.

In the given case, Carl scheduled safety training for the employees and took care that the injured employee gets his insurance. He performed all these decisions by using the money of the company.

Thus, he had been using the resources to tackle the situation.

By encouraging its sales representatives to freely talk to their managers about the changing customer needs, RST Global increased its responsiveness to customers. Which of the following is most likely to be the factor that helped RST achieve this? Low information richness
Overload of information
High perceptual bias
Good communication
Effective electronic trail

Answers

Answer: GOOD COMMUNICATION

Explanation:

A. The capacity of data to carry potential information is called information richness. As the sales representative were the mediums and the topic was need of customers there is no scope that information will be low in richness.

B. If there would be an information overload there could not have been an increase in responsiveness.

C. The information was presented by sales representatives who gets in direct contact with customers so there is a very little chance that the information would be on perceptual basis.

D. Free and effective communication between managers and sales representatives helps to transmit complete message with all perspectives cleared . Thus, helping in succeed.

E. In this problem there is an effective internal organizational communication and not an electronic trail.

Telfer, Inc. reported net income of $2.3 million in 2020. Depreciation for the year was $157,100, accounts receivable decreased $329,900, and accounts payable decreased $302,000. Compute net cash provided by operating activities using the indirect method.

Answers

Answer:

$2,479,600

Explanation:

The computation of the operating activities via indirect method is shown below:

Cash flow from operating activities

Net income = $2,300,000

Add : Depreciation for the year $157,100

Add: Decrease in account receivable $329,900

Less: Decrease in account payable -$302,000

Net cash flow provided by operating activities $2,479,600

Arco Corporation declared a cash dividend on June 2 of $6 per common share. The company has 2,000 shares of common stock authorized, 1,000 shares issued, and 200 in the treasury. The entry to record the declaration of the cash dividend increases a(n)

Answers

Answer:

The journal entry to record the dividend declaration is:

June 2, 202x, cash dividends are declared

Dr Retained earnings 4,800

Cr Dividends payable 4,800

The journal entry to record the payment of the dividend would be:

Dr Dividends payable 4,800

Cr Cash 4,800

When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800

Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following information from the accounting records Sales price (per unit)
Manufacturing costs $ 448
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
Required:
Compute the following:____
1. Variable manufacturing cost per unit $217
2. Full cost per unit
3. Variable cost per unit
4. Full absorption cost per unit.
5. Prime cost per unit.
6, Conversion cost per unit.
7. Profit margin per unit
8. Contribution margin per unit
9. Gross margin per unit

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) $448

Manufacturing costs:

Fixed overhead 50,400

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Marketing and administrative costs:

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= $217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= $325,800

Total cost per unit= 325,800/900= $362

c. Total variable cost= 217 + 14= $231

d. The absorption costing method includes all costs related to production, both fixed and variable.

Absorption cost= 217 + (50,400/900)= $273

e. Prime cost= direct material + direct labor

Prime cost= 112 + 35= $147

f. Conversion cost= direct labor + unitary variable overhead

Conversion cost= 35 + 70= $105

g. Profit margin= selling price - total unitary cost

Profit margin= 448 - 362= $86

h. Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 448 - 231= $217

j. Gross margin per unit= Selling price - absorption cost per unit

Gross margin per unit= 448 - 273= $175

Final answer:

The computations show that Columbia Products incurs a loss per unit sold and that manufacturing costs and overheads figure significantly into the total cost per unit. The company needs to increase sales price or decrease costs to attain a positive profit margin.

Explanation:

Here's how to calculate the required costs:

Variable manufacturing cost per unit is already given as $217.
Full cost per unit is the sum of all costs, both fixed and variable, divided by the number of units - ($50,400 + $67,500 + 900 * ($217 + $14)) / 900 = $490.
Variable cost per unit includes both manufacturing cost and marketing/administrative cost - $217 + $14 = $231.
Full absorption cost per unit considers all manufacturing costs - both variable and fixed - so ($50,400 + 900 * $217) / 900 = $364.
The Prime cost per unit is the sum of direct labor and direct materials - $35 + $112 = $147.
Conversion cost per unit is direct labor plus variable overhead - $35 + $70 = $105.
The Profit margin per unit is sales price per unit minus all costs per unit - $448 - $490 = -$42, which indicates a loss rather than a profit.
Contribution margin per unit is sales price per unit minus variable costs per unit - $448 - $231 = $217.
Gross margin per unit is sales price per unit minus variable manufacturing cost per unit - $448 - $217 = $231.

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The gross profit method is most commonly used to:_______ a. estimate the cost of inventory from incomplete records. b. determine the exact cost of inventory. c. develop a sales budget. d. replace the year-end physical inventory.

Answers

Answer:

a. estimate the cost of inventory from incomplete records.

Explanation:

The gross profit method is used to estimate the cost of inventory from incomplete records. This is done by determining the amount of gross profit using the Sales Revenue and the Gross Profit Margin. Then finding the difference between the Cost of Goods available for sale and this Gross Profit to reach to the estimated cost of inventory.

Other Questions

Concord Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sales of Gizmo for the month of March. Concord Company uses the periodic inventory system.

When aggregate demand is high enough to drive unemployment below the natural rate:_________a. there is downward pressure on the price level, and the government may want to conduct contractionary fiscal policy. b. the economy is slipping into a recession, and the government may want to conduct expansionary fiscal policy. c. there is upward pressure on the price level, and the government may want to conduct contractionary fiscal policy. d. there is upward pressure on the price level, and the government may want to conduct expansionary fiscal policy. e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.

In a perfectly competitive market in the long run, after all adjustments have occurred, an increase in demand causes equilibrium price to:

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $168,120. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $22,500 at the beginning of each period Economic life of asset 2 years Fair value of asset $168, 120 Implicit interest rate (Also lessee's incremental borrowing rate) 88 Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.