Answer:
Ending inventory cost for April is equal to $121,875
Explanation:
Based on the information provided in the question:
Unit production cost Absorption cost Variable cost
Direct material $15 $15
Direct labor 10 10
Variable factory overhead 7.5 7.5
Fixed factory overhead 5
Total cost $37.5 $32.5
Finished goods inventory calculation results in 12,500 - 8,750 = 3,750
The cost of the finished goods inventory calculated using absorption costing = 3,750 × $37.50
= $140,625
The finished goods inventory cost using variable costing = 3,750 × $32.50
= $121,875
Cathy's clientele consists of two-thirds residential customers and one-third business customers, with 350 residential customers in total.
Determine:
The overall number of customers
Solution:
Considering 350 represents two-thirds of the total customers, divide 350 by 2 to get 175, which equals one-third of the customer base.
175 × 3 = 525
<span>Thus, the total customer count is 525.</span>
Answer:
No. The duration for payback is 3.8 years.
Explanation:
The payback period indicates the time required to recover the funds invested in a project through accumulated cash flow.
The total investment amounts to $4,200 + $1,500 = $5,700.
Refer to the attached image for a detailed breakdown of how the payback period was determined.
The payback period is calculated as 3 years + 1400/1750 = 3.8 years.
Since 3.8 years exceeds the desired 3-year payback period, Jack should not proceed with the project.
I hope my answer is helpful.
Answer: Reference price
Explanation:
The manufacturer suggested retail price (MSRP) serves as the reference price, which indicates the amount a buyer is willing to pay for products and services in the marketplace.
This is also referred to as competitor pricing, and high-volume buyers mainly utilize reference pricing.
Reference pricing facilitates the comparison of product quality and actual pricing for customers, helping to prevent any confusion.
In summary, the correct response is Reference price.
