Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level).
Annual demand 2,870 mufflers Ordering cost $65per order
Standard deviation of daily demand 6 mufflers per working day Service probability 76%
Item cost $31.00 per muffler Lead time 2 working days
Annual holding cost 22% of item value Working days 205 per year
Review period 16working days
a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV) function to find the correct critical value for the given
α-level. Do not round intermediate calculations. Round ''z'' value to 2 decimal places and final answer to the nearest whole number.)
b. If the service probability requirement is 97 percent, the optimal target level will:
_____Increase
_____Decrease
_____Stay the same

Answers

Answer 1

Answer:

A.) 270 units (b.) Increase

Explanation:

Given the following :

Annual demand (A) = 2870

Working days = 205

Review period (P) = 16 working days

Lead time (L) = 2 working days

Standard deviation (σ) = 6 per working day

Service probability = 76%

Therefore, z = NORMSINV(0.76) = 0.71

Average demand (D) = 2870 / 205 = 14

Optimum target level, (S) is given by the relation:

D×(P+L) + z×σ×√(P+L)

14×(16+2) + 0.71×6×√(16+2)

(14×18) + 4.26 × √18

252 + 4.26*4.242

252 + 18.07

= 270.07 units = 270 units

B) If service probability increases to 97%, Z will automatically increase, hence a corresponding increase in the optimal target level.


Related Questions

The "added worker" effect would cause the labor force to __________ during a recession. Group of answer choices increase decrease remain unchanged either increase or decrease

Answers

Answer: Increase

Explanation:

The Added Worker effect refers to a scenario where more family members typically women, enter the job market when the principal breadwinner in the household becomes unemployed. This is done to increase the income streams of the household to cushion the effect of the breadwinner becoming unemployed.

In a recession, more people will lose jobs so more members of a family will join the job market looking to give their households more income streams so the labor force will increase in size.

A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.

Answers

Answer and Explanation:

From the diagram in the picture (please find attached) we see that the competitive price and quantity lies at the marginal cost( which the producer cannot go below). The consumer surplus lies just below the demand curve(the downward sloping curve with) and the producer surplus is above the marginal cost. Note the producer surplus is the difference between what the supplier is willing to sell and how much he actually sells,  the marginal cost is the lowest the supplier would want to sell. This applies to the consumer surplus too

The producer surplus region was indicated with vertical strokes in the diagram attached

Part 1 Household consumption, which accounts for about _______% of the economy, grew at a 4.2% annualized rate during the second quarter of 2016.
Part 2 Which component of GDP would cause the largest increase in GDP if it increased by 5%

Answers

Answer:

1) Household consumption, which accounts for about 68%* of the economy, grew at a 4.2% annualized rate during the second quarter of 2016.

*Data obtained from federal government sources.

2) Since household/consumer spending (consumption) represents almost 70% of the nation's GDP, any change will cause a major change in the total GDP. E.g. if consumption increases by 5%, then the whole economy will grow by 5% x 68% = 3.4%.

Which of the following is an example of a hidden variable? Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment.

Answers

Answer:

Quality of life is a hidden variable because it cannot be measured directly but must be inferred from measurable variables such as wealth, success, and environment.

Explanation:

Hidden variable: The term "hidden variable" is described as the proposition that specific "statistical models" of any physical systems, for example, Quantum mechanics are being incomplete inherently, and along with this the apparent randomness of a particular system is being dependent not on "collapsing functions" but instead it is due to any unmeasurable or unseen or hidden variables.

Absolute Manipulation​ Manufacturing's (AMM) standards anticipate that there will be 4 pounds of raw material used for every unit of finished goods produced. AMM began the month of May with 3,500 pounds of raw​ material, purchased 18,700 pounds for $16,830 and ended the month with 1,900 pounds on hand. The company produced 4,700 units of finished goods. The company estimates standard costs at $1.30 per pound. The materials price and efficiency variances for the month of May ​were:

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Standard:

Quantity= 4 pounds per unit

Cost= $1.3 per pound

Actual:

Purchase= 18,700

Used= 3,500 + 18,700 - 1,900= 20,300

Cost= 16,830/18,700= $0.9 per pound

Units produced= 4,700 units

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (1.3 - 0.9)*18,700

Direct material price variance= $7,480 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4*4,700 - 20,300)*1.3

Direct material quantity variance= $1,950 unfavorable

The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the nest department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Compute the total equivalent units of production for direct materials and conversion costs for October.

Answers

Answer:

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units

Explanation:

These can be computed by preparing statements of equivalent units as follows:

Statement of Equivalent Units (EU) (Weighted average)

For October

For Materials

Particulars       Units (a)       Complete (%) (b)     EU (c = a * b)

Transferred        38,000                 100%                    38,000

Ending WIP        24,000                100%                    24,000

Total                   62,000                                            62,000

Statement of Equivalent Units (EU) (Weighted average)

For October

For Conversion Costs

Particulars       Units (a)       Complete (%) (b)     EU (c = a * b)

Transferred        38,000                100%                      38,000

Ending WIP        24,000                20%                         4,800

Total                   62,000                                              42,000

Conclusion

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units

A new operating system for an existing maching is expected to cost $786000 and have a useful life of six years. The system yields an incremental after-tax income of $230000 each year after deducting its straight line depreciation. The predicted salvage value of the system is $90000. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment.

Answers

Answer:

NPV is $771,739

Explanation:

As we know that:

Net Present Value = Present Value of Cash inflow (STEP 1) - Present Value of Cash outflow

STEP 1. Present Value of Cash Inflow

Here

Present Value of Cash Inflow = Annuity of Annual Cash flow    - PV of Scrap Value

Annual Cash flow is $346,000 ($230,000  +   ($786,000 - $90,000)/6)

So

Annuity of annual cash inflow = $346,000 * Annuity Factor

Here

Annuity Factor for 6 years is 4.3553

Now this means that:

Annuity of annual cash Inflow = $346,000 *  4.3553 = $1,506,934

Present Value of Residual Value ($90,000 * 0.5645) = $50,805

Present Value of cash inflows                                        $1,557,739

Now putting values in the above equation, we have:

Net Present Value = $1,557,739   -    $786,000

Net Present Value = $771,739

In the aftermath of the global economic crisis that started to take hold in 2008, U.S. government budget deficits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for quite some time. Does this make sense? Why or why not

Answers

Answer and Explanation:

the supply effect of large deficits should cause interest rates to go up. The economic crisis caused wealth and income to be lower

which brought about a depression inTreasury bond demand, corporate bond supply also fell the more as investment opportunities reduced. A greater leftward shift in the bond

supply curve than the rightward shift in the bond demand curve would bring about a rise in

bond prices and a reduction in interest rates. Because off the seriousness of the global crisis, the United States

treasury debt became safe for forms of investment, with relative risk falling and liquidity

for U.S. treasury debt rising.

This then increased the U.S. treasury bond demand, resulting into higher

bond prices and lower yields.

You are scheduled to receive $35,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per year. How much will you have in 8 years?

Answers

Answer:

$52,526

Explanation:

In two years i have $35,000.

the amount  invested thus the Principle amount is  $35,000

Pv = $35,000

r = 7 %

PMT = $0

n = 6

Fv = ?

Note that The 8 th year is the sixth year of this investment.

FV = PV × (1 + r) n

     = $35,000 × ( 1 + 0.07) 6

     = $52,525.56

     = $52,526

eal per capita GDP in Singapore in 1961 was about $450, but it doubled to about $900.00 by 1978. a. What was the average annual economic growth rate in Singapore over the 17.00 years from 1961 to 1978

Answers

Answer:

The answer is 4.16%

Explanation:

Per capita GDP is the average income earned per person in a given country during a given period of time usually a year.

Per capita GDP in Singapore in 1961 equals $450

Per capita GDP in Singapore in 1978 equals $900

Difference between 1978 and 1961 is 17 years.

The formula for economic growth rate is;

[(End value/beginning value)^1)/17] - 1

[($900/$450)^1/17] - 1

1.041613 - 1

0.0416

Expressed as a percentage:

4.16%

When a manager uses relationships and formal authority to cause other people in the organization to change their behavior, the manager is _____________.

Answers

Answer:

answer choices?

Explanation:

what are the answer choices

The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employees. Assume no other payroll taxes are incurred at this time. What is Red Mountain's total expense with regards to this payroll

Answers

Answer:

$189,000

Explanation:

The computation of total expense with regards to this payroll is shown below:-

Total expense = Salaries and wages earned by employees + Employer's portion of FICA taxes

= $180,000 + $9,000

= $189,000

Therefore for computing the total expenses with regards to this payroll we simply applied the above formula and we ignore all other values as they are not relevant.

Oriole Company had $197,000 of net income in 2019 when the selling price per unit was $152, the variable costs per unit were $90, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Oriole Company is under pressure from stockholders to increase net income by $99,200 in 2020.

Required:
a. Compute the number of units sold in 2019.
b. Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit .
c. Assume that Oriole Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Net income= $197,000

Selling price per unit= $152

Unitary variable cost= $90

Fixed costs= $571,800

Desired profit= 99,200 + 197,000= $296,200

First, we need to calculate the number of units sold:

Contribution margin per unit= 152 - 90= $62

Total contribution margin= net income + fixed costs

Total contribution margin= 197,000 + 571,800= $768,800

Units sold= total contribution margin / unitary contribution margin

Units sold= 768,800/62= 12,400 units

Now, to determine the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profir) / contribution margin per unit

Break-even point in units= (571,800 + 296,200) / 62

Break-even point in units= 14,000 units

Finally, we need to determine the selling price for 12,400 units and the desired profit of $296,200.

12,400= 868,000 / (selling price - 90)

-1,116,000 + 12,400selling price= 868,000

12,400 selling price = 1,984,000

selling price= $160

Target ROI is 19% Invested Capital is $569,512 Full Cost per unit $1,124 Expected sales volume is 959 units. If the company prices each unit to earn the target ROI, what amount of profit would be added to the cost of each unit?

Answers

Answer:

The amount of profit to be added to the cost of each unit = $112.83

Explanation:

Profit is the difference between the selling price per unit and full cost per unit. To determine the the amount of profit to be added , we will divide the total return on invested capital by the number of units to be produced and sold. This is given below as follows:

Target return = ROI (%) × Invested capital

                     = 19% × 569,512 = 108,207.28

Profit per unit = Total return/Number of units

                   = $108,207.28 /959 units

                   = $112.83 per unit

Selling price per unit = Full cost per unit + profit per unit

                                = 1,124 + 112.83 = 1,237.66  (this is not required anyway)

The amount of profit to be added to the cost of each unit = $112.83

The amount of profit that would be added to the cost of each unit is $112.83 that should be come after calculating the target return.

Calculation of the amount of profit:

Before that the following calculations need to be done

Target return = ROI (%) × Invested capital

= 19% × 569,512

= 108,207.28

Now

Profit per unit = Total return/Number of units

= $108,207.28 /959 units

 = $112.83 per unit

hence, The amount of profit that would be added to the cost of each unit is $112.83.

Learn more about sales here: https://brainly.com/question/24343063

The Pennington Corporation issued a new series of bonds on January 1, 1985. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2014. Coupon payments are made semiannually (on June 30 and December 31). a. What was the YTM on January 1, 1985?

Answers

Answer:

The YTM on January 1, 1985 was 6.00%.

Explanation:

The YTM is the interest rate used to determine the Present Value of Coupons and Principle and can be found as follows :

PV = $1,000

Pmt = ($1,000 × 12 %) / 2 = - $60

P/yr = 1

n = 30 × 2 = 60

Fv = - $1,000

YTM = ?

Using a Financial Calculator, the YTM is 6.00%

Therefore, the YTM on January 1, 1985 was 6.00%.

Find end inventory and cost of goods
Date Transactions Units Unit Cost Total Cost
June 1 Beginning inventory 16 $ 340 $ 5,440
June 7 Sale 11
June 12 Purchase 10 330 3,300
June 15 Sale 12
June 24 Purchase 10 320 3,200
June 27 Sale 8
June 29 Purchase 10 310 3,100
$ 15,040

Answers

Answer:

End inventory = $4,730

Cost of goods sold = $10,310

Explanation:

Note: This question is not complete. The complete question is therefore provided in the attached Microsoft word document before answering the question as follows:

a. Calculation of ending inventory

Number of units of Beginning inventory remaining unsold = 16 - 11 - 3 - 1 = 1 unit

Value of number of units Beginning inventory remaining unsold = 1 * $340 = $340

Number of units June 12 Purchase remaining unsold = 10 - 9 = 1 unit

Value of number of units June 12 Purchase remaining unsold = 1 * $330 = $330

Number of units of June 24 Purchase remaining unsold = 10 - 7 = 3 units

Value of number of June 24 Purchase remaining unsold = 3 * $320 = $960

Value of number of June 29 Purchase remaining unsold = 10 * $310 = $3,100

Therefore, End inventory is the addition of all the values of units remaining unsold as follows:

End inventory = $340 + $330 + $960 + $3,100 = $4,730

b. Calculation of cost of goods sold

June 7 cost of goods sold = 11 * $340 = $3,740

June 15 cost of goods sold = (3 * $340) + (9 * $330) = $3,990

June 27 cost of goods sold = (1 * $340) + (7 * $320) = $2,580

Cost of goods sold can therefore be calculated as follows:

Cost of goods sold = June 7 cost of goods sold + June 15 cost of goods sold + June 27 cost of goods sold = $3,740 + $3,990 + $2,580 = $10,310

Banks often estimate inflation. You can see what they think inflation will be if you know how much they charge for loans and how much they expect to earn. Suppose the nominal interest rate is 7% and the real interest rate is 2%. Given these interest rates, the bank thinks inflation will be_________ %

Answers

Answer:

5%

Explanation:

To find the answer, we use the Nominal Interest Rate formula:

Nominal Interest Rate = Real Interest Rate + Inflation Rate

Now, we plug the amounts into the formula, and confirm that the answer is correct:

7% = 2% + 5%

As we can see, the nominal interest rate is the sum of the real interest rate and the inflation rate. Therefore, banks will estimate the nominal interest rate taking into account the expected inflation rate.

An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate both:
a. the price-consumption curve associated with changes curve for wine.
b. the price of wine and the demand
Price Wine 10.00 12.00 15.00 20.00
Price Book 10.00 10.00 10.00 10.00
Quantity Wine 7.00 5.00 4.00 2.00
Quantity Book 8.00 9.00 9.00 11.00
Budget 150.00 150.00 150.00 150.00

Answers

Answer and Explanation:

The price consumption curve abbreviated PCC indicates graphically the changes in consumption of goods given changes in prices of the goods

The graph picture attached(please find attached) illustrates the decrease in consumption for wine as the price increases( the higher the price, the lower the demand), hence the downward sloping PCC curve. The other diagram B for book shows increase in quantity demanded even while price is constant causing a straight line not downward or upward sloping curve. This can happen as a result of other factors such as increase in quality of product or other factors. Also notice that we are working with the assumption that consumer's budget is constant so that it does not contribute as a factor for increase in demand

Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 250,000 $ 286,000 Purchases 672,000 888,000 Freight-in 14,000 Net markups 26,000 Net markdowns 4,500 Net sales 860,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided

Answers

Answer:

261,690

Explanation:

The computation of inventory is shown below:-

Particulars                        Cost         Retail           Cost-to-Retail Ratio

Beginning inventory   $250,000    $286,000  

Add Purchases            $672,000   $888,000  

Freight-in                      $14,000

Net markup                                      $26,000  

Total                              $936,000   $1,200,000

Less: Net markdowns                       $4,500

Goods available for sale                   $1,195,000  

Cost-to-retail percentage                  0.78 (in working note)

Less: Net sales                                  $860,000

Retail Estimated ending

inventory                                            $335,500  ($1,195,000 - $860,000)

At cost Estimated ending

inventory                           $261,690

Cost-to-retail percentage is

= 936,000 ÷ 1,200,000

= 0.78

Estimated ending inventory at cost is

335,500 × 0.78

= 261,690

If the Fed lowers the interest​ rate, then A. only consumption expenditure decreases. B. only investment decreases. C. consumption expenditure decreases and investment increases. D. net exports will increase. E. both consumption expenditure and investment decrease.

Answers

Answer: D. net exports will increase.

Explanation:

Lower interest rates decrease the value of a currency because less investors will invest in it. This reduced currency value will mean that exports will become cheaper as they are quoted in the domestic currency. As the exports are cheaper, more countries will buy them leading to an increase in Net exports.

All of the following are assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of except? Homogenous customer needs worldwide People around the world are willing to sacrifice preferences for lower prices and higher quality Economies of scale can be obtained in production and marketing through supplying worldwide Lowering international synergy and cost via the value chain matrix

Answers

Answer: Lowering international synergy and cost via the value chain matrix

Explanation:

Theodore Levitt came up with some assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of which include;

On a global scale, customer needs are beginning to become homogeneous.People are willing to sacrifice their preferences for better quality products at a cheaper quality which gives Multinational Companies a chance to offer them better products than local producers due to their large sizes and Economies of scale.Having to supply the world can lead to Economies of scale in production and marketing due to the larger market.

Lowering international synergy and cost via the value chain matrix is not one of the assumptions espoused by Theodore Levitt and so is the correct answer.

During the current year, Cary and Bill incurred acquisition debt on their residence of $1,300,000 and a home equity loan of $200,000. On a joint tax return, what is the amount of their qualified acquisition debt and qualified home equity debt, respectively?

Answers

Answer:

qualified acquisition debt = $750,000

qualified home equity debt = $0

Explanation:

Qualified acquisition debt refers to the debt incurred to purchase or build your home. In this case, Cary and Bill are allowed to itemize the interests paid for up to $750,000 of the acquisition debt ($375,000 if filing separately). This limit was reduced due to the TCJA of 2017, and will remain in place until 2025. After 2025, the limit will return to the normal $1,000,000.

Certain amount of interests on qualified home equity loans will also return in 2025, but currently they are not deductible.  

You need a 30-year, fixed-rate mortgage to buy a new home for $320,000. Your mortgage bank will lend you the money at a 6.15 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,600, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.
How large will this balloon payment have to be for you to keep your monthly payments at $1,600? Please show and explain all work.

Answers

Answer:

$362,353

Explanation:

In order to answer this question I prepared an amortization schedule to determine the remaining principal balance at the end of the 30th year.

The problem with this loan is that the interests charged for the first month only are $1,640. This means that your monthly payment will not even cover the interest expense which means that the principal will grow month after month. After 360 months, your loan balance will increase from $320,000 to $362,353.

Nick and Dale owned Buddy Corporation and had contacted Kurt's Warehousing to about storing some goods. Per the warehouse receipt, Nick and Dale would store the goods on its premises. This is an example of _______________.

Answers

Answer:

Flex warehousing

Explanation:

Flex warehousing also known as Public Warehousing, is a form of warehousing in which various firms seek to store high-turnover product in spaces for short periods of time.

It is a type of warehouse space which allows many clients' products to be received, handled, stored, and transported out in a flexible environment.

It is used to cater for overflow of goods, so as to maximize the space and labor reserved for only one contract client at a time.

Hence , in this case, this is an example of FLEX WAREHOUSING.

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:___________.
A) started in process during the period.
B) in process during the period.
C) completed and sold during the period.
D) completed during the period.

Answers

Answer:

D) completed during the period.

Explanation:

The jobs that have been completed are transferred from Work In Process Account to the Finished Goods Inventory Account.

It is from this Finished Goods Inventory that the Cost of Sales would be determined for those jobs sold.

Break-even point Currently, the unit selling price of a product is $160, the unit variable cost is $120, and the total fixed costs are $725,000. A proposal is being evaluated to increase the unit selling price to $170.
A. Compute the current break-even sales (units).
B. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Answers

Answer:

A. 18,125 units

B. 14,500 units

Explanation:

Break -even is the level of activity where a firm neither makes a profit nor a loss.

Break-even sales (units) = Fixed Cost ÷ Contribution per unit

                                        =  $725,000 ÷ ( $160 - $120)

                                        =  18,125 units

New Break-even sales (units) = Fixed Cost ÷ Contribution per unit

                                                 =  $725,000 ÷ ( $170- $120)

                                                 =  14,500 units

As a sysadmin, you will find yourself doing business with a variety of third-party vendors. Which of these are likely to be rented or bought from a vendor? Check all that apply.

Answers

Available Options are:

Fax machines

Printers

Smartphones

Video or audio conferencing machines

Answer:

All of the above except Printers

Explanation:

The reason is that printers are very important part of administration work so its more likely that we already have one. However it is possible that we don't have any fax machine, smartphones and video or audio conferencing machines as these are rarely used by the administration. So Printers will not be bought oor rented.

A university bookstore buys mechanical pencils from a wholesaler. The wholesaler offers discount for large order quantity per shipment according to the following price schedule:
Order Quantity Price Per Unit
1 to 200 $4.00
201 to 1,000 $3.60
1,001 to 2,000 $3.40
2,001 and greater $3.25
The bookstore expects an annual demand of 2,500 units. It costs $10 to place an order, and the annual cost of holding a unit in stock is 30% of the unit’s procurement price. Determine the best order quantity.

Answers

Answer:

226 units

Explanation:

Formula : [tex]\sqrt{\frac{2 * Annual Demand * Ordering Cost}{Holding Cost}[/tex]

[tex]\sqrt{\frac{2*2500*10}{0.3*3.25} }[/tex]  = 226

The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. Ordering cost is determined by the number of order placed.

Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $500,000 $450,000 Paid-in capital in excess of par 948,000 853,000 Retained earnings 688,000 582,000 A. $95,000. B. $201,000. C. $69,000. D. $79,000. E. $50,000.

Answers

Answer:

C. $69,000

Explanation:

Computation of the cash paid for dividends during Year 2

First step is to calculate the difference in Retained earnings for Year 2 and Year 1

Retained earnings =$688,000-$582,000

Difference in retained earnings =$106,000

Second step is to calculate for the cash paid for dividends during Year 2

Using this formula

Cash paid dividend = Year 2 Net income- Retained earnings difference

Let plug in the formula

Cash paid dividend=$175,000-$106,000

Cash paid dividend =$69,000

Therefore the cash paid for dividends during Year 2 will be $69,000

ABC Company sells three products, X, Y and Z. The weighted average contribution margin for all three products is $3.05 per unit. ABC's total fixed costs are $35,000. Sales mix percentages are :

Answers

Answer:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Explanation:

Giving the following information:

The weighted average contribution margin for all three products is $3.05 per unit. ABC's total fixed costs are $35,000

With the information provided, we can only calculate the break-even point in units for the whole company using the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 35,000/3.05

Break-even point (units)= 11,475

Now, imagine the following sales mix:

X= 0.25

Y=0.40

Z=0.35

We can determine the number of units for each product:

X= 11,475*0.25= 2,869

Y= 11,475*0.4= 4,590

Z= 11,475*0.35= 4,016

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