Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price
Two inventors, recently organized as Innovation, Inc., consult you regarding a planned new product.They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $560,000 (ignore income taxes).
Their plans indicate that each unit of the new product requires the following:
Direct Material 4 lb. of a material costing $7 per lb.
Direct labor 2 hrs. of a metal former's time at $15.40 per hr. 0.6 hr. of an assembler's time at $11.20 per hr.
Major items of production overhead would be annual rent of $65,044 for a factory building, $40,124 rent for machinery, and $30,380 of indirect material. Other production overhead is estimated to be $326,592. Selling expenses are an estimated 30% of total sales, and non-factory administrative expenses are 20% of total sales.
The consensus at Innovation is that during 2016 10,000 units of product should be produced for selling and another 2.000 units should be produced for the next years beginning inventory. Also, an extra 3,000 pounds of material will be purchased as beginning inventory for the next year. Because of the nature of the manufacturing process, all units started must be completed, so work in process inventories are negligible.
Required
Incorporate the above data into a schedule of estimated total manufacturing costs and compute the unit production cost for 2016.

Answer:

Free cash flow to the firm = $180million

Explanation:

Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.

It is computed as cash flow made from operation less capital expenditures

For Blur Communications

The Free cash flow

= EBIT(1-T) + depreciation- increase in capital expenditure - increase in working capital

= 1000 × (1-0.4) + 200 - 500 - 120

= $180 million

Free cash flow to the firm = $180million

The materials needed for work can vary depending on the specific job and tasks involved, but based on the typical requirements of each profession, the following materials may be needed:

A. Painter - Paint, paintbrushes, rollers, drop cloths, sandpaper, putty knives, tape, paint thinner or solvents, and safety equipment (such as gloves, goggles, and masks).

B. Launderer - Laundry detergent, fabric softener, bleach, stain removers, washing machines, dryers, irons, ironing boards, hangers, folding tables.

C. Carpenter - Wood, saws, hammers, nails, screws, measuring tape, levels, chisels, drills, sandpaper, clamps, and safety equipment (such as goggles and ear protection).

D. Cook - Food ingredients, cooking utensils (such as pots, pans, and utensils), knives, cutting boards, measuring cups and spoons, mixing bowls, oven mitts, stove, oven, grill, and food storage containers.

E. Welder - Welding machine, welding helmet, gloves, apron, welding rods or wire, grinding equipment, and safety equipment (such as goggles and ear protection).

Based on the above list, it is likely that the Carpenter, Painter, and Welder will need these materials for their work, whereas the Cook and Launderer may not necessarily require them, depending on the specifics of their job.

Learn more about carpenters here:

https://brainly.co.id/tugas/5814570

#SPJ1

Answer:

Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure.

Small business  can be described as the business that is been privately owned corporation and can as well be a  partnership, or sole proprietorship , and this business usually consist of small number of employees  which do consist of less annual revenue compare to  corporation or regular-sized business.

List several small businesses in your local area are:

The impact these small businesses have on your local economy is that it help the economy because  Small businesses serves as the  important economic engine since it serves as the back up .

Small businesses  can be described as the one that help the  local economies  because it bring about the growth as well as the  innovation into the community that the  business is been established.

In conclusion, Business  can be described as the organization  as well as enterprising entity which focus on making profit by engaging in the production or selling of products as well as services.

Learn more about  business  at:

https://brainly.com/question/26106218

#SPJ1

Answer:

The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale.

A collection of cash flows that take place at various times is referred to as the net present value or net present worth.

What is NPV?

Machine A's EAV is equal to (-100000+95000/1.1+15000/1.12+16000/1.13+10000/1.14)*10%/(1-1/1.14)=5555.91.

Machine A's NPV at 10% is -100000+45000/1.1+35000/1.12+60000/1.13=14913.60. Because the IRR will be closer to 20% than the NPV at 10%, the approximate IRR should be 18.11 percent.

The time between now and the cash flow determines the cash flow's present value. The discount rate is another factor. The money's time value is taken into account by NPV. The value of all positive and negative future cash flows over an investment's lifetime, discounted to the present, is known as the net present value (NPV).

When determining the value of a company, investment security, capital project, new venture, cost reduction program, or anything else involving cash flow, NPV analysis—a type of intrinsic valuation—is widely used in finance and accounting.

To know more about NPV, visit:

brainly.com/question/29423457

#SPJ1

The approximate IRR should be 18.11 percent. The term "net present value (NPV)" or "net present worth" refers to a group of cash transfers that happen over time.

Machine A's EAV is equal to

(-100000+95000/1.1+15000/1.12+16000/1.13+10000/1.14)*10%/(1-

1/1.14)=5555.91.

Machine A's NPV at 10% is

-100000+45000/1.1+35000/1.12+60000/1.13=14913.60. Because the IRR

will be closer to 20% than the NPV at 10%,

the approximate IRR should be 18.11 percent.

The cash flow's present worth is determined by the amount of time until it occurs. Another element is the discount rate. NPV considers the time worth of the money. The net present value of an investment is the sum of all future financial flows, both positive and negative, discounted to the present. (NPV).

The value of a company, investment security, capital project, new endeavor, cost-cutting program, or anything else involving cash flow is frequently determined using NPV analysis, a type of intrinsic valuation.

To know more about NPV, visit:

brainly.com/question/29423457

#SPJ1

Answer:

The level at which an individual is viewed by society is called Social Status. ... It is the measure of worth or the position that the 'person holds in society'.

Explanation:

I hope this helps and pls mark me brainliest :)

Answer:

B. the set of plans for product, price, place, and promotion that the marketer will use

The disadvantage of using nominal interest rate to compare investment options is that it doesn't account for inflation.The correct option is A.

The overall rise in prices of goods and services in an economy over time is referred to as inflation. It is a sustained rise in the average level of prices, leading to a decrease in the purchasing power of money.

Inflation occurs when there is an imbalance between the supply of money and the available goods and services in the economy. When the supply of money exceeds the available goods and services, prices tend to rise.

Thus, the ideal selection is option A.

Learn more about inflation here:

https://brainly.com/question/26644463

#SPJ1

Answer:

The answer is A. It is when customers and employees provide feedback to the design team.

An iterative loop is a process in which the design team creates a prototype, tests it with customers and employees, and then uses the feedback to improve the prototype. This process is repeated until the design team is satisfied with the product.

Iterative loops are a valuable part of the product development process because they allow the design team to get feedback from real users early on. This feedback can help the team identify any problems with the design and make improvements before the product is released to the general public.

Here is an example of an iterative loop in product development:

1. The design team creates a prototype of a new product.

2. The team tests the prototype with customers and employees.

3. The team collects feedback from the users.

4. The team uses the feedback to improve the prototype.

5. The team repeats steps 2-4 until they are satisfied with the product.

Iterative loops can be used to develop any type of product, from software to hardware to consumer goods. They are a valuable tool for any design team that wants to create a product that meets the needs of its users.

Explanation:

Answer: raising taxes while lowering spending

Explanation: I just got it right on A p e x

1. The standard 2-day shipment is more economical

2. The impact of transportation time on production schedules, the availability of the power-steering pump at the Ohio plant, and the impact of any delays or disruptions in transportation are not discussed here

a) To determine which option is more economical, we need to calculate the total cost of each option, taking into account the cost of transportation and the holding cost of the inventory.

Option 1: Standard 2-day shipment

Transportation cost: Assuming the transportation cost for the standard 2-day shipment is $1,000, which is typical for a shipment of this value, the total cost would be:

$1,000 + (0.35/365 x $250,000 x 2) = $1,845.21

Transportation cost: Assuming the transportation cost for the overnight team drive is $1,175 ($1,000 for the standard shipment plus $175 for the extra driver), the total cost would be:

$1,175 + (0.35/365 x $250,000 x 1) = $1,877.40

Therefore, the standard 2-day shipment is more economical with a total cost of $1,845.21, compared to the overnight team drive with a total cost of $1,877.40.

b) There are several production issues not included in the data presented, such as the impact of transportation time on production schedules, the availability of the power-steering pump at the Ohio plant, and the impact of any delays or disruptions in transportation on the assembly line in Alabama. These issues can affect the overall cost and efficiency of the production process and should be considered when making decisions about transportation and logistics.

Read more on logistics here:https://brainly.com/question/23177203

#SPJ1

Geography plays a critical role in global business because it affects the location of resources and the ability to move goods and services.

Resources, such as oil and minerals, are located in specific regions, and businesses must determine whether it is economically feasible to transport these resources to other parts of the world.

The time zones have a significant impact on global business as the exchange of goods and services among countries is hindered when there are time zone variations.

Workdays play a vital role in global business. It’s necessary to determine if the customs and traditions of a country will impact business operations.

Natural harbors are significant for businesses that rely on shipping and transportation.

Transportation costs are higher when the distance between supplier and consumer is greater, which affects pricing and availability. Resources, such as oil and minerals, are located in specific regions, and businesses must determine whether it is economically feasible to transport these resources to other parts of the world.The time zones have a significant impact on global business as the exchange of goods and services among countries is hindered when there are time zone variations.

Due to time zone differences, many companies may be closed when it is necessary to make a call or arrange a meeting. Workdays play a vital role in global business. It’s necessary to determine if the customs and traditions of a country will impact business operations. This includes religious holidays, weekends, and other cultural events. Resources are another important factor in global business.

Businesses must assess the available resources in different countries to determine if there are sufficient resources to support their operations. This includes everything from human resources to natural resources.Finally, natural harbors are significant for businesses that rely on shipping and transportation. These businesses must determine whether the available ports in a country are suitable for their needs and whether the infrastructure is in place to support their operations.

For more such questions on resources

https://brainly.com/question/30418403

#SPJ8

Answer:

Quarterly ( April 15, June 15 , September 15,  January 15 )

4 months ( October 15)

Within 3 years

Tax Audit

Explanation:

Some taxpayers must make four quarterly installments. These are due Quarterly ( April 15, June 15 , September 15,  January 15 )

If taxpayers have been granted an automatic extension, their annual federal tax return is due no later than 4 months ( October 15)

If a taxpayer amends a return, they submit revised calculations for determining tax liability. They file this return Within 3 years

In some cases, up to six years from when a return was filed, taxpayers can be notified that they are subject to Tax Audit

Answer:

Option B; Creating face-to-face interviews

Explanation:

Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.

Answer:

Decreases the cost of manufacturing

Explanation:

Decreases the cost of manufacturing

The name of the new program that Merck implemented to encourage its people managers to give more employee feedback is “Inspire the Best.”

Merck, a global pharmaceutical company, has implemented various programs and initiatives aimed at improving employee engagement and development, including programs focused on feedback and coaching.

Some of the programs that Merck has implemented in the past include the "360-Degree Feedback Program" and the "Performance Coaching Program." These programs are designed to provide employees with feedback and support to help them grow and develop in their roles.

Find out more on employee feedback at https://brainly.com/question/26994432

#SPJ1

Answer:

Three roles of government in a planned economy:

*Planning economic activity: in a planned or command economy, the government actually plans the economy, in the sense that it determines the amount of goods and services to be produced an distributed over a period of time. In the Soviet Union for example, this period of time was of 5 years.

*Owning businesses: in planned or command economies, most or all firms are public, since private property usually does not exist in this type of economices. These firms tend to have a high degree of government control, where directly in the form of government ownership, or indirectly.

*Setting prices: a key characteristic of a planned economy is that prices are set beforehand. They are not left for the market to decide.

It provides insights into the relationship between sales volume, costs, and profitability, helping managers make informed decisions about pricing, production levels, and cost management.

CVP analysis allows managers to determine the breakeven point, the level of sales needed to cover all costs, and to assess the impact of changes in sales volume, costs, or prices on the company's profitability. This analysis can guide strategic planning, budgeting, and resource allocation.

As a manager, I find the contribution margin method of income statement format more useful than the traditional financial accounting method. The contribution margin method separates costs into fixed and variable components, allowing for a clearer understanding of how changes in sales volume affect profitability.

It highlights the contribution margin ratio, which indicates the proportion of each sales dollar available to cover fixed costs and contribute to profits.

This format enables managers to analyze cost behavior, identify cost-saving opportunities, and evaluate the financial impact of different sales scenarios. It provides a more focused view of the underlying profitability drivers and aids in decision-making related to pricing, product mix, and cost control.

For more such questions on profitability visit:

https://brainly.com/question/24553900

#SPJ8

The guideline that should be followed while writing a bad-news statement is option B. A bad-news statement should not subordinate the refusal.

When writing a bad-news statement, it is important to adhere to certain guidelines in order to convey the message effectively while maintaining professionalism and empathy.

Subordinating the refusal means placing the negative or disappointing news within a subordinate clause or sentence, rather than directly addressing it. This approach is often seen as evasive or unclear, as it can confuse the recipient and lead to misinterpretation or frustration. Therefore, it is recommended to state the bad news directly and explicitly.

By clearly and directly stating the bad news, you demonstrate transparency and respect for the recipient's time and emotions. It allows the recipient to comprehend the message without having to decipher subtle hints or implications. Directness also minimizes the potential for misunderstanding or confusion, ensuring that the intended message is effectively conveyed.

However, while directness is important, it is equally crucial to deliver the bad news with tact, sensitivity, and empathy. Along with the bad news, it is helpful to provide a clear explanation, justification, or alternative options to soften the impact. This approach demonstrates understanding and consideration for the recipient's feelings and fosters a more positive perception of the communication, despite the negative content.

In conclusion, when writing a bad-news statement, it is essential to avoid subordinating the refusal and instead deliver the news directly. By doing so, you promote transparency, clarity, and effective communication while balancing it with empathy and sensitivity towards the recipient. Therefore, Option B is Correct.

Know more about Bad-news here:

https://brainly.com/question/29672877

#SPJ8

The question was Incomplete, Find the full content below:

Which of the following guidelines should be followed while writing a bad-news statement?

a. A bad-news statement should be included in the opening paragraph.

b. A bad-news statement should not subordinate the refusal.

c. A bad-news statement should always be presented indirectly.

Answer:C. Because of its remoteness, there was much slower population growth in this region than the national averages in U.S. and Canada.

Explanation:

Based on the lectures, the correct options are:

• The U.S.-Canadian border was set by agreement at 49* N latitude

• The Modoc and Klamath native peoples inhabited Oregon while the Palouse and Yakima tribes inhabited Washington.

• Most of the region’s population lives in the lowlands from the Fraser River in Canada to the Willamette Valley in Washington.

• The first railroad to Seattle stimulated large numbers of immigrants, especially Scandinavians, into Washington.

Therefore, option C is the answer.

The cost of Software E to you in the long run, based on the satisfaction probability, can be found to be $50, 000

The cost in the long run of Software E can be found by the formula:

= ( Probability of satisfaction x Cost in long run ) + ( Probability of non- satisfaction x Cost in long run )

The Probability of non- satisfaction x Cost in long run is given to us as $12, 500.

Assuming the cost in the long run is x, the equation becomes:

( 75 % × x ) + 12, 500  = x

0.75x + 12, 500 = x

75/ 100 x + 12, 500 = x

75x + 1, 250, 000 = 100x

100x - 75 x = 1, 250, 000

25 x = 1, 250, 000

x = 1, 250, 000 / 25

x = $50, 000

Find out more on long run cost at https://brainly.com/question/22856205

#SPJ1

Expected cost = Current price x factor ∧ number of months = 14,000 * 0.99 ∧ 1 = 13 860; 14,000 * 0.99 ∧ 6 = 13 180.72; 14,000 * 0.99 ∧ 12 = 12 409.39

Companies looking to reduce their operational expenses frequently employ a Kaizen System in the context of supply chain management. The Kaizen System has a structure that mandates constant efficiency improvement in a business in order to lower costs and boost quality. Kaizen is the process of continuously enhancing operations and cutting expenses. The idea often produces slow, steady progress over time. By including projected cost cuts into the anticipated outcomes of a corporation, this idea can be used to budgeting.

To know more about Kaizen visit:

https://brainly.com/question/16960276

#SPJ1

I would say by the firm calculating their reports from before it usually shows where the company should stand for tears to come

Explanation:

The communication barrier Yessica is likely to face as an exchange student from Spain is language.

Communication barrier is a thing or a factor that stands in the way of effective communication. Yessica is from Spain and she is studying in Maryland. In Spain, Spanish is spoken and in Mayland, English is spoken, thus there is a difference in language and this would stand in the way of effective communciation.

To learn more about communication barrier, please check: https://brainly.com/question/25709466

Answer: 8.21%

Explanation:

The common-size percent for cash is the cash reported divided by the total assets.

14,700/179,000= .0821

x 100 = 8.21%

Answer:

Its real account

Cash A/C.....Dr

Debtor A/C....Dr

To Creditors A/C....

Answer:

Instructions are below.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

I will assume that there is no beginning nor ending inventory.

Absorption costing income statement:

Sales= 6,100*590= 3,599,000

COGS= (6,100*413)= (2,519,300)

Gross profit= 1,079,700

Total selling expense= (6,100*50 + 125,600)= (430,600)

Total administrative expense= (6,100*28 + 207,500)= (378,300)

Net operating income= 270,800

Variable costing income statement:

Sales= 3,599,000

Total variable cost= 6,100*(413 + 50 + 28)= (2,995,100)

Total contribution margin= 603,900

Total fixed selling expense= (125,600)

Total fixed administrative expense= (207,500)

Net operating income= 270,800