Answer: To optimize profit, the production will entail: 400 luxury units and no standard ones. Explanation: For luxury items, raw material and labor yield higher profitability. Thus, maximizing luxury output becomes the focus, utilizing all available labor hours while ensuring no production for standard due to resource constraints.
Answer:
1. He has yet to advance the concept
2. His boss is aware of his pacifist beliefs, so Ben faces the dilemma of whether it is ethically sound to create a product potentially usable for warfare.
Explanation:
In this case, Ben has entered into a contract with his employer stating that all concepts he formulates during his employment are owned by the company.
Such agreements are standard practice and grant companies rights over the innovations created by their staff.
Despite this, Ben's pacifism presents an ethical conflict as he contemplates an idea that might turn an ultrasonic range-finding device into a weapon.
He defends his stance by asserting that no development on this idea has occurred and believes his employer will not press him to work on such technology given his pacifist views.
Answer:
Follow the instructions provided below.
Explanation:
Given the data:
The selling price of the company's ball is $25.
Variable cost per item= $15.00
Fixed costs= 426,000
The contribution margin ratio is the percentage of sales contributing to fixed costs. It is calculated using:
Contribution margin ratio= (selling price - unit variable cost)/selling price
Contribution margin ratio= (25 - 15)/25= 0.4
Break-even units= fixed costs/ contribution margin
Break-even units= 426,000/10= 42,600 units
The degree of operating leverage quantifies the change in income relative to sales fluctuations.
Degree of operating leverage= total contribution margin / (total contribution margin - fixed expenses)
Degree of operating leverage= (62,000*10) / [(62,000*10) - 426,000]
Degree of operating leverage= 3.20
During the quarter, employee wages exempt from FUTA or SUTA hinges on 15 weeks of service. Employee 1 received wages computed as 15 weeks × $900 totaling $13,500, with exemptions totaling $6,500 after deducting the $7,000 threshold. Employee 2 accrued wages of 15 weeks × $1,200 amounting to $18,000, thus $11,000 exempt. With total payments of $13,500 and $18,000 across both employees, computations yield a collective taxable wage of $14,000 by deducting exemptions from gross wages. Consequently, SUTA and FUTA taxes at the end of the first and second quarters result in SUTA at 0.057 multiplied by $14,000 equating to $798 and FUTA at 0.008 multiplied by $14,000 amounts to $112.
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
