Answer:
The soft drink costs more when purchased in a can.
The can is $0.044 more per ounce than the bottle.
Explanation:
From the information in the question:
Price for a 12-oz can = 75 cents = $0.75
Price for a 2-liter bottle = $1.25
To find the cost per ounce for the can = $0.75 divided by 12
= $0.0625 per ounce
For the bottle:
Total ounces contained = 2 × 1.057 × 32 oz [As 1.0 L = 1.057 qt, 1 qt = 32 oz]
= 67.648 oz
Thus,
Cost per ounce for the bottle = $1.25 divided by 67.648 oz
= $0.0185 per ounce
Consequently,
The soft drink costs more in a can.
Price difference = $0.0625 per ounce - $0.0185 per ounce
= $0.044 per ounce
Therefore,
The can is $0.044 more expensive than the bottle.
A financial disadvantage of $150,000 is noted.
Ceasing the bilge pump product line will erase its variable costs; however, some fixed costs will remain intact. To determine the financial outcome of discontinuation, we must also account for any fixed costs that can be saved. The Contribution Margin is calculated from Sales minus variable costs, which excludes variable cost savings. Discontinuing won't impact overall factory overhead or total Purchasing Department expenses, so fixed cost savings will stem from Advertising, Salary of the product line manager, and inventory insurance.
Savings from fixed costs accumulate to $310,000. The Contribution Margin loss from discontinuation amounts to ($460,000). Including fixed costs saved, we calculate:
(460,000) + 310,000 = ($150,000). Thus, $150,000 remains in losses even after considering the fixed costs saved.
B is the correct response to that question.
Answer:
Markup(%) = 216.67%
Explanation:
Markup indicates the profit earned expressed as a percentage of the cost.
Markup = Profit / cost × 100
The cost consists of direct material costs, direct labor costs, and fixed costs.
Cost per unit = 5 + (100,000/10,000)
= 15 per unit.
The total cost for a pair is = 2 × 15 = 30.
<pthe profit="" for="" each="" pair="95">$65
Markup(%) = $65 / 30 × 100 = 216.67%
</pthe>
Doc's ribhouse commenced with $52,000 in equity, generated $35,000 in net income, and distributed $12,000 in dividends. To find the ending equity, use the formula: Beginning Equity + Net Income - Dividends = Ending Equity. Plugging in the values gives us: $52,000 + $35,000 - $12,000 = Ending equity. This results in $52,000 + $23,000 = $75,000, confirming the ending equity is $75,000.
