Question
Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for 10 per banner. The companys costs
Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for 10 per banner. The companys costs per banner based on making 10,000 banners are:
Prime cost | 5.00 |
Overhead cost | 3.00 overhead is 2/3 fixed at that volume |
WBA offers to buy 1,000 banners with special WBA insignias for 7 per banner. Printing the special insignias will cost Kyrie 200.
What is the incremental profit/(loss) associated with this special order?
Group of answer choices
(800)
(1,000)
1,000
0,800
Leonard International produces weekly 20,000 units of Product N and 40,000 units of Product B for which 900,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some information:
PRODUCT N | PRODUCT B | |
Unit selling price without further processing | 25 | 18 |
Unit selling price with further processing | 30 | 22 |
Total separate weekly variable costs of further processing | 100,000 | 90,000 |
To maximize Leonards manufacturing contribution margin, how much should be the total separate variable costs of further processing that should be incurred each week?
Group of answer choices
090,000
070,000
190,000
0
Data pertaining to Lakers Co.s manufacturing operations:
INVENTORIES | April 1, 20X1 | April 30, 20X1 |
Raw Materials | 18,000 | 15,000 |
Work-in-Process | 09,000 | 06,000 |
Finished Goods | 27,000 | 36,000 |
Additional Information:
Direct materials purchased | 42,000 |
Direct labor payroll | 30,000 |
Direct labor rate per hour | 07.50 |
Factory overhead rate per direct labor hours | 10.00 |
What is the cost of goods sold for April?
Group of answer choices
109,000
118,000
106,000
115,000
Information for Duncan Corporation is shown below:
20X1 | |
Net Income | 400,000 |
Average Investment | 1,000,000 |
Sales Revenue | 2,000,000 |
The sales margin is
Group of answer choices
25%
70%
20%
40%
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