BUSINESS COLLEGE

Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units

Answers

Answer 1
Answer:

Answer and Explanation:

1. The computation of the total expected dollar sales for next period is given below:

Sales $4,410,000

Less: variable cost $1,764,000

Contribution margin $2,646,000

Less: fixed cost $2,364,000

Pre tax income $282,000

2. The number of units that should be sold is

= $2,646,000 ÷ $63 per unit

= 42,000 units

In this way it should be calculated

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Which of the following is not a correct interpretation of a trade-off?Having more of one thing means having less of another.
Demand of ice-cream must increase in the summer.
There is no free lunch.
One must give up something in order to obtain something else.

Answers

Answer:

D

Explanation:

A trade-off occurs when we make a choice that benefits us, but to acquire that benefit, we also have to give up something of value. Further explore the definition of trade-offs in economics, understand the concepts of opportunity costs and sacrifices, and recognize the importance of making trade-offs in a strategic manner that uses resources wisely.

Benson Manufacturing Company established the following standard price and cost data: Sales price $ 8.10 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,100 total Fixed selling and administrative cost $ 500 total Benson planned to produce and sell 2,400 units. Actual production and sales amounted to 2,700 units. Assume that the actual sales price is $7.80 per unit and that the actual variable cost is $4.25 per unit. The actual fixed manufacturing cost is $1,300, and the actual selling and administrative costs are $530. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (

Answers

Answer:

The flexible budget variances are attached.

Overall, the variance was favorable.  The actual results in net income produced a favorable variance of $275.

Explanation:

A budget variance is the difference between the actual amount and the budgeted.

It is favorable when the actual income is greater than the budgeted income or when the actual expense is less than the budgeted expense.  Income becomes favorable if more actual income had been generated than actually projected.  And if actual expense is more than budgeted, then the expense line item records unfavorable variance.

Variance analysis is always employed to gauge performance.  After analysis, the variances are investigated for course correction, as the case may be.  Favorable outcomes are encouraged while unfavorable outcomes are discouraged.

Mary signed up and paid $660 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s accounting records would indicate:

Answers

Answer: $220 of revenue, $440 of deferred revenue

Explanation:

Based on the information in the question, revenue will be recognised for the months of June and july which will be:

= 2/6 × $660

= $220

Deferred revenue will be:

= $660 - $220

= $440

Therefore, As of August 1st, Choplet’s accounting records would indicate $220 of revenue, $440 of deferred revenue.

The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $264,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement ofBased on this information, the statement of partners' equity would show what amount in the capital account for Harrison on December 31?a.$164,000b.$216,000c.$52,000d.$380,000

Answers

Answer:

b.$216,000

Explanation:

The computation of the balance in the capital account for Harrison is shown below:

= Opening balance + additional invested amount - withdrawn amount + net income distributed

= $160,000 + $20,000 - $96,000 + $132,000

= $216,000

We assume that the net income is equally distributed.

Since we have to determine for the Harrison only so we ignored the Marti data which is given in the question

Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project’s life? a. Flexibility option b. Timing option c. Abandonment option

Answers

Answer:

correction option is A i.e. Flexibility option

Explanation:

correction option is A i.e. Flexibility option

flexibility option make easier for corporation unit to decide on production or raw material on the basis of market condition.

Abandonment option - As the name indicate this option initiate when corporation suffered huge lost or when there is a conditioned of  minimum cash flow due to any reason.

Answer:

B

Explanation:

Timing option makes it possible to alter inputs or outputs in production process.

The Foxmoor Company produces three products, X, Y, and Z, from a single raw material input. Product Y can be sold at the split-off point for total revenues of $63,000 or it can be processed further at a total cost of $36,000 and then sold for $108,000. Product Y: Multiple Choice
Should be sold at the split-off point, rather than processed further.
Would increase the company's overall net income by $45,000 if processed further and then sold.
Would increase the company's overall net income by $108,000 if processed further and then sold.
Would increase the company's overall net income by $9,000 if processed further and then sold.

Answers

Answer: Would increase the company's overall net income by $9,000 if processed further and then sold.

Explanation:

The Revenue if sold at the split-off point is $63,000.

But if processed further, we can realize revenue of,

= $108,000 - 36,000

= $72,000

To find out the revenue difference then we will subtract the alternatives.

= $72,000 - 63,000

= $9,000

$9,000 extra will be gained if we process further as opposed to selling at the Split-off point. This shows that Option D or the last option is correct.

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