Revealed by Explanation: The term "revealed by" applies in scenarios where the classification of derivatives for a new document is integrated and obtains the authorized source for classification into the new document while not being present in the original document. Therefore, the concept used to ascertain the classification of derivatives is revealed by this principle.
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.
Response: $1091.61
Clarification:
Based on the inquiry, fifteen years ago, Mr. Fairhold invested $50,000 in a single-premium annuity contract, and this year, he began to receive a monthly payment of $1,300 that will last throughout his lifetime, with an expected total of $312,000. The taxable amount of each monthly payment for Mr. Fairhold is calculated as follows:
In accordance with the inquiry, Mr. Fairhold will recoup his $50,000 tax-free. The exclusion ratio is formulated by dividing the investment by the anticipated return. This yields:
= $50,000/$312,000
= 0.1603
Given that he receives a monthly payment of $1,300 and the exclusion ratio stands at 0.1603, the tax-free return on investment would then amount to:
= $1,300 × 0.1603
= $208.39
Taxable portion of the annuity payment will therefore be:
= $1300 - $208.39
= $1091.61
Answer:
Indirect manufacturing cost= $22100
Explanation:
The following data is provided:
Direct materials $ 6.20
Direct labor $ 3.10
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 14,000
Sales commissions $ 1.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,500
A total of 6,000 units have been produced.
To find the indirect manufacturing cost: variable overhead plus fixed manufacturing overhead is calculated as 1.35 * 6000 + 14000 = $22100.
