A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant has a cost basis of $6,000 and a 10-year depreciable life. The estimated SV of the saw is zero at the end of 10 years. Use the DB method to calculate the annual depreciation amounts when:

(a) R = 2/N (200% DB method)


(b) R = 1.5/N (150% DB method)

Answer:

Company output will be maximized if Calvin makes all the decals and Hobbes makes all the chains.

-Calvin has a comparative advantage for making decals.

-Hobbes has a higher opportunity cost for making decals than Calvin.

Explanation: Each partner should focus on the task where he has a comparative advantage.

In the situation of Calvins: if someone has a comparative advantage in producing something, that means he also has a lower opportunity cost in practicing that object.

In the situation of Hobbes: if he has a higher opportunity cost for making decals, then Calvin has a lower opportunity cost for making decals.

Answer:

The correct answers are letters "A", "B", and "C".

Explanation:

Comparative advantage is the advantage an individual, company or country has that allows them to produce at lower opportunity cost compared to rivals. It does not necessarily mean that they have an absolute advantage. Due to lower opportunity costs, a company can offer its products at lower prices generating more revenue.

In the case, as Hobbes is faster at making chains, Hobbes has a comparative advantage on chains over Calvin. Though, as Hobbes is slower in making decals, Hobbes has higher opportunity costs than Calvin on decals. In such a way, Calvin has a comparative advantage in making decals.

Therefore, the chains and decals output would be maximized if Calvin makes decals only and Hobbes makes chains only.

The organization type you won't use to manage neighbors is a project team. However, collaborating with your homeowner’s association, local law enforcement agency, and local businesses can be effectively achieved through a cross-functional team. Lastly, a more diverse team typically results in more ideas.

Starting off with the first blank, you don't manage your neighbors, so you won't be using a project team, which are typically utilized for specific tasks or projects within an organization. Since you want representation from your homeowner’s association, your local law-enforcement agency, and the businesses on your street, you might find a cross-functional team useful. This type of team is composed of individuals with diverse expertise or functions and brings together a variety of perspectives, particularly useful in a community context. Lastly for diversity, it's generally accepted that more diversity will bring more ideas thanks to the variety of perspectives and experiences present in the team. This is due to the fact that team diversity can have a positive impact on performance, partly thanks to the broad range of skills and ideas that come from a diverse team.

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Answer:

1. Almost all dissatisfied guests complain.

FALSE, ONLY ABOUT 5-10% OF DISSATISFIED CUSTOMERS ACTUALLY COMPLAIN. SOMETIMES THAT RATIO IS EVEN LOWER DEPENDING ON THE INDUSTRY.

2. About 13 to 16 guests out of every 100 are purposefully out to scam us and get something for free.

FALSE

3. If you solve a guest problem efficiently, quickly, and delightfully...that guest may be even more likely to use your product or service again than if he or she ever had a problem in the first place.

TRUE, ABOUT 95% OF THE GUESTS WHOSE PROBLEMS WERE SOLVED IMMEDIATELY AND DELIGHTFULLY GENERALLY RETURN OR HAVE A VERY POSITIVE OPINION ABOUT THE HOTEL.

4. Dr. Ricci gave two examples of excellence in guest service from which organizations?

C) Publix, JetBlue

5. It is only likely for a guest to receive outstanding service at luxury brands. That's why Ritz-Carlton, Mandarin Oriental, Four Seasons, and others are the best at what they do.

FALSE

Answer:

Option B is correct one.

Mutual interdependence

Explanation:

Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called mutual interdependence.

Mutual interdependence is a term in which a group of oligopolies all benefit from one another. They can benefit through market share, location in terms of geography, product differentiation, price allocation, etc.

Oligopolistic firms are engaged in a state of mutual interdependence where their pricing and economic decisions are heavily influenced by the actions of a few other dominant firms within the same market. This results in either strong competition, which can lead to minimal profits, or collusion, mimicking monopoly behavior with higher profits.

In the context of oligopolies, each oligopolistic firm must consider the potential reactions and strategies of its competitors when making decisions about pricing or other economic variables. This strategic consideration is commonly referred to as mutual interdependence, where the firms' decisions regarding output, price, and advertising are interconnected with the decisions of the other firms within the same industry.

Whether oligopolists decide to compete fiercely or collude will significantly affect the outcomes in terms of profit levels and market prices. Collusion could lead to higher profits akin to a monopoly, while competition might drive profits down to zero as if they were perfect competitors. The essence of oligopolistic markets is this balance between competition and collusion, shaping the dynamic of mutual interdependence among the firms.

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Answer:

Paticipative budgets

Explanation:

A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.

A budget shows the different costs incurred by the organisation within a particular period of time.

Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.

Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.

Final answer:

To prepare a pension worksheet for Headland Company, calculate key figures and organize them from 2020 and 2021. Then use the worksheet to prepare journal entries reflecting all pension plan transactions and events. Finally, report the pension amounts in the financial statements for 2021.

Explanation:

To prepare a pension worksheet for Headland Company for the years 2020 and 2021, you need to calculate several key figures. These include the projected benefit obligation (PBO), the fair value and market-related value of plan assets, the pension asset/liability, the prior service cost, the service cost, the settlement rate, the expected rate of return, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and the increase in projected benefit obligation due to changes in actuarial assumptions. By organizing these figures in a clear and organized manner, you can create a comprehensive pension worksheet for both years.

Once the pension worksheet is complete, you can use the information to prepare the journal entries to reflect all pension plan transactions and events at December 31 of each year. This will involve recording the service cost, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and any changes in the projected benefit obligation. By properly recording these transactions, you can accurately reflect the financial impact of the pension plan on the company's records.

Finally, for 2021, the pension amounts reported in the financial statements will include the accumulated benefit obligation at December 31, the vested benefit obligation at December 31, and any other relevant information that needs to be disclosed. These amounts will provide stakeholders with an understanding of the financial obligations and commitments related to the pension plan in the current year.

Answer:

Option (a) is correct.

Explanation:

Externality is the consequence of an activity which affects the third party either in a positive way or in a negative way.

There are two types of externalities are as follows:

(i) Positive externality: When the third party is positively affected by an economic transaction between the two parties.

(ii) Negative externality: When the third party is negatively affected by an economic transaction between the two parties.

In our case, there is an increase in the level of pollution created by Singapore which results in an increase in the global warming. This will affect the whole world in a negatively manner and also affect their level of GDP.

Answer:

The required rate of return is 17.2%

Explanation:

To calculate the required rate of return, we will use the CAPM or Capital asset pricing model. The formula for the required rate of return (r) is:

r = rRF + Beta * (rpM)

Where,

Required rate of return for Puffy Shirt Inc's stock is:

r = 0.04 + 1.2 * 0.11

r = 0.172 or 17.2%

Answer:

The correct answer is letter "D": It is upward sloping.

Explanation:

The short-run Aggregate Supply Curve is upward sloping because it establishes a directly proportional relationship between quantity supplied and prices. It means, as soon as the quantity supplied increases so will the price. Besides, it considers production has a fixed factor which in most cases is capital.

The short-run aggregate supply curve is upward sloping because of inflexible input prices, temporary supply shocks, and changes in nominal wages. Firms are willing to produce more goods and services when their selling price increases in the short term.

In the context of macroeconomics, the correct answer to the question about the short-run aggregate supply curve is D. It is upward sloping. The Short-run Aggregate Supply (SRAS) curve is upward sloping because of three primary reasons. These reasons include inflexible input prices, temporary supply shocks, and changes in nominal wages. Inflexible input prices mean that in the short-term, costs such as wages may not change immediately in response to changes in output levels. Temporary supply shocks, such as sudden changes in the price of an essential resource, can cause the SRAS to shift. Also, changes in nominal wages can affect the position of the SRAS curve. In the short-term, firms are willing to produce more goods and services when their selling price increases. Hence, the curve is upward sloping.

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Answer:

The correct answer is letter "B": spotters.

Explanation:

Spotters are individuals who act on behalf of a business without the need of being employees. Usually, the company engages in a regular sale relationship with these individuals and offers them rewards -in the form of discounts, for instance- in exchange for promoting the benefits of certain products or referring other potential buyers.  

Spotters use word-to-mouth marketing to promote an entity.

Pete is using buyers as 'spotters' by incentivizing them to refer new customers to boost car sales through a grassroots marketing strategy.

Pete, a salesperson at a Honda dealership, offers buyers $50 when they refer someone else who purchases a new car. By doing this, Pete is trying to convert these buyers into his spotters. The term spotter refers to individuals who can identify potential customers and refer them to a salesperson or business. This tactic is a grassroots marketing strategy, where businesses rely more on word-of-mouth and personal referrals rather than formal advertising, which can be seen as a more authentic form of marketing.

Therefore, the appropriate answer is B. spotters.

Answer:

Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.

Explanation:

Since less labor will be used, total unemployment will increase. Besides less labor being used, more capital will be used, so the share of labor in total output will decrease. Labor efficiency increases, since you need less labor to produce the same or even a larger amount of output.

New technologies tend to increase the wages of high skilled labor and management. Since the Gini coefficient measures income inequality, then higher wages for a few will increase inequality.  

This is an example of what is happening in the US, where highly trained labor is getting paid better every time while unskilled labor is getting paid the same as many years ago or their wage has even decreased with time. This shows how important a college education is, and the difference will only keep increasing.

Answer:

Using 8.60% ROR,we will have current stock of $156.51,option D is correct.

Answer:

The stock price will be: $109.39

Explanation:

* The stock price will be equal to the sum of present value of:

+ Positive Growth annuity in the next four years;

+ Positive growth perpetuity starting in year 5.

- Calculation of positive Growth annuity in the next four years:

+ Dividend in year 1 = 3.1 x 1.17 = $3.627

+ Present value of the annuity = [ 3.627 / ( 8.6% - 17%) ] x [ 1 - [ (1+17%) / (1+8.6%)]^4 ] = $14.99.

- Calculation of positive growth perpetuity starting in year 5:

+ Dividend in year 5 = 3.1 x 1.17^4 x 1.04 = $6.04;

+ Present value of the perpetuity = [ 6.04 / (8.6% - 4%) ] / 1.086^4 = $94.40

=> Share price = 14.99 + 94.40 = $109.39

Answer:

0.8%

Explanation:

Moore Corporation

T-bills are currently earning 3.55 %

Less Real interest rate 2.75%

Inflation premium 0.8%

Or

Expected IP = i - RFR = 3.55% - 2.75% = 0.8%

Therefore the inflation premium is 0.8%

Answer:

a-1. Calculate the ROI for both North and South divisions.

a-2. If Solomons measures performance using ROI, which division had the better performance?

b-1. Calculate the EVA for both North and South divisions. (The divisions have no current liabilities.)

b-2. If Solomons measures performance using economic value added, which division had the better performance?

c. Would your evaluation change if the company’s cost of capital was 16 percent?

1. When evaluated by ROI?

2. When evaluated by EVA?

North Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $30,000,000 x (20% - 16%) = $1,200,000

South Division EVA = (net investment) x (actual return on investment – percentage cost of capital) = $320,000,000 x (9.38% - 16%) = -21,184,000

Answer:

Solomons Company

North and South Divisions

North/South Divisions:

Operating Profit = $6,000,000/$40,000,000

Investment = $30,000,000/$320,000,000

Cost of Capital (WACC) = 8%

a-1) ROI for both North and South Divisions:

ROI = Return on Investment

= Operating Profit/Investment x 100

North's ROI = 6/30 x 100 = 20%

South's ROI = 40/320 x 100 = 12%

a-2) If Solomons measures performance using ROI, the North division had the better performance.

b-1) Calculation of EVA for both North and South divisions:

EVA = Economic Value Added.

EVA = Net Operating Profit After Taxes minus (Invested Capital x WACC)

North's EVA = $6,000,000 - ($30,000,000 x 8%) =6m - 2.4m = $3,600,000

South's EVA = $40,000,000 - ($320,000,000 x 8%) = 40m - 25.6m = $14,400,000

b-2) If Solomons measures performance using economic value added, the South division had the better performance.

c) 1. When ROI is evaluated using 16% cost of capital, the North division had a better performance.  So the evaluation changes based on the 16% cost of capital.  Whereas, North makes 20% ROI as against 16% cost of capital, the South manages 12% ROI as against 16% cost of capital.

c) 2. When performances are evaluated by EVA with 16% cost of capital:

North's EVA = $6,000,000 - ($30,000,000 x 16%) = 6m - 4.8m = $1,200,000

South's EVA = $40,000,000 - ($320,000,000 x 16%) = $40m - $51.2m = ($11,200,000)

When evaluated by EVA using 16% cost of capital, my evaluation would favour the North instead of the South.

Explanation:

ROI or Return on Investment is a financial performance measure which measures the profitability of an investment in a simple way.  It compares the return on an investment relative to its cost.  It is expressed as a percentage.

EVA or Economic Value Added is also a financial performance measure which subtracts the cost of capital from the operating profit in order to gauge in dollars terms the value created by the firm.

Answer: Expenses or losses that are tax deductible before they are recognized in financial income.

Explanation:

Future taxable amounts arise as a result of a difference between the way an asset or liability is recorded due to the company's financial accounting principles and the way it should be recorded due to taxation principles of the government.

When this happens you will find that some things are not taxed as they should be, but rather as the company records them to be. These differences are only temporary though and correct themselves as time goes on.

An example of such are expenses of losses. Some expenses for instance may be taxable immediately but are instead only taxed in the business over the term of the expense.

To find the probability that the Continental flight is late on a rainy day, we need to use the given probabilities and calculate the conditional probability. The probability that the Continental flight is late on a rainy day is 75%.

To find the probability that the Continental flight is late on a rainy day, we need to use the given probabilities and calculate the conditional probability. According to the information provided, the probability of rain is 35% and the probability of the Continental flight being late given rain is 75%. The formula for conditional probability is:

P(A|B) = P(A and B) / P(B)

Using the formula, the conditional probability of the Continental flight being late when it is raining is:

P(Late|Rain) = P(Late and Rain) / P(Rain) = (0.75 * 0.35) / 0.35 = 0.75

Therefore, the probability that the Continental flight is late on a rainy day is 75%.

Answer:

$1,302,000

Explanation:

                                         Dent Company

                                 Balance Sheet (partial)

                              As at December 31, 2019

Property, Plant, & Equipment

Buildings                                                           $1,100,000

Less: accumulated depreciation—buildings $(600,000)

Net book value of Buildings                                                $500,000

Coal mine                                                          $500,000

Less: accumulated depletion—coal mine      $(108,000)

Net Book value of Coal Mine                                               $392,000  

Total property, plant, and equipment                                 $892,000

Intangible Assets

Goodwill                                                                                 $410,000  

Total assets (Long-term Assets)                                        $1,302,000

Here, we are going to prepare a partial balance sheet of Dent Company by using information given in the question.

                                  DENT COMPANY

                           PARTIAL BALANCE SHEET

Property,plant and equipment

Coal Mine                                            $500,000  

Less: Accumulated depletion            $108,000      $392,000  

Buildings                                              $1,100,000

Less: Accumulated depreciation       $600,000     $500,000

Total Property, plant and equipment                                           $892,000

Intangible assets

Goodwill                                                                                          $410,000

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Answer:

explicit

Explanation:

According to Gerald R. Ledlow and James H. Stephens in Leadership for Health Professionals, Frequent expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization; however, non-performing employees may need explicit counseling of each expectation, norm, and performance standard.

Employees must be clearly informed about the behavior and results expected from them in alignment with organizational goals. For nonperforming employees, explicit guidance and counseling are necessary to clarify and reinforce expectations. Documenting expectations, providing feedback, and establishing contracts for group guidelines can help ensure employees understand and meet performance standards.

Frequent Communication and Performance Expectations in Organizations

Frequent communication of expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization to ensure clarity and understanding of performance expectations. When dealing with nonperforming employees, there may be a need for explicit counseling of each expectation, norm, and performance standard. Clear communication is crucial, and for employees to perform their roles effectively, they must be thoroughly aware of the behaviors and results expected of them. Performance expectations, such as explicit rules and group standards, should align with the organization's goals and be evident in job descriptions, behavior standards, and consistent managerial feedback.

Performance objectives should not only be communicated but also documented for reference and accountability. When documenting these expectations, it becomes easier to avoid ambiguity, facilitate peer feedback, initiate discussions on performance results, discourage undesirable actions, and serve as a psychological anchor for employees. For instances where nonperformance issues persist, additional strategies like peer mentorship and continuation of explicit guidance could be essential for improvement.

In cases where rules and group norms need to be enforced, a contract of group guidelines can be useful. This contract, agreed upon by all group members, outlines the expected behaviors, meeting procedures, and consequences of not adhering to the set norms and expectations.

Answer:

Correct answer is

c. The present value of $10,000, discounted at a 10% discount rate for four years

Question

a. Present value

$6,830

b. Journal Entry for sale

Dr. Note Receivable  $10,000

Cr. Discount on Note $3,170  

Cr. Sales                     $6,830

c. Journal Entry on last day of following year

Dr. Discount on Note $792.5

Cr. Interest revenue   $792.5  

Explanation:

a.

As there is no Interest will be received on this note, Only face value will be received after 4 years.

Use Following present value form

PV = FV / (1 + i%)^n

PV = $10,000 / ( 1 + 10%)^4

PV = $6,830

b.

Amount of Sale Is calculated by taking present value of the future cash flows associated with the note. Receivable of $10,000 will be recorded and the difference will be recorded as unearned revenue, which will be recognized every year until the maturity.

c.

The interest revenue is recognized against the discount on note value recorded earlier.

Answer:

Lean Accounting

Journal Entries

Sr. No                Particulars               Debit          Credit

a.             Raw Materials                 $ 19200

                      Accounts Payable                    $19200

Materials of  $32* 600 units= $ 19200 are purchased on accounts.

a.           Work in Process              $ 19200

                    Raw Materials Inventory              $ 19200

Raw Materials of $ 19200 are put to production

b. Conversion Costs Rate = $ 180,000/ 2000= $ 90 per hour

No of hours required for 550 units = 18* 550/3600= 9900/60= 165 hours

Conversion Costs for 550 units = $90 *165= $ 14850

                      Work In Process Inventory     $14850

                            Raw Materials Inventory                      $ 14850

As we are unsure of the Manufacturing Overheads all the amounts is debited  Raw materials inventory assuming all production hours were direct labor hours.

c.                  Finished Goods                    $ 29500

                                Work In Process                             $29500

All the completed units 500 are transferred to Finished Goods inventory.

Calculation of Finished Goods Inventory Costs.

Materials = 500 * $32= $ 16000

Conversion Costs = 500 units *18 mins /60= 150 hours  *$ 90= $ 13500

Total = $16000+ $13500= $29500

Answer:

1) reduce

2) increase

3) a, b

Explanation:

1. This would reduce the demand for steel workers because the steel serves as the company's output. Since low price of output means low profit, which leads to low demand for labor.

2. Increase in the demand for automobile workers would be observed because the cost of materials are now cheaper; Implying more profit for companies and thus more demand for labor.

3. Giving unemployment insurance benefits is one best method to reduce this type of unemployment. Also facilitating a widely used job-search website could help.

Answer:

Suppose the world price of steel falls substantially.

The demand for labor among steel-producing firms in Pennsylvania will DECREASE. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will INCREASE. The temporary unemployment resulting from such sectoral shifts in the economy is best described as FRICTIONAL UNEMPLOYMENT.

2. A. Improving a widely used job-search website so that it matches workers to job vacancies more effectively.

Explanation:

To tackle frictional unemployment and reduce it, matching of job seekers with job openings of should be carried out.

This can be thoroughly achieved through the transmission of information.

It should be noted tgat frictional unemployment is not related to economic policy and inflation.

What can only erase it is widespread transmission of information among job seekers regarding the availability of jobs.

With such, job seekers in Pennsylvania will get notified of job vacancies in steel-related jobs in Michigan.

Answer:

Explanation

since the direct materials falls under assets and now in this case are being transferred out of fast co. they must be credited because they are no longer resources or owned by fast co

Answer:

See the answer in the explanation below

Explanation:

 Date:                  The Work in Process Inventory-Cutting account

October  1                           Direct material $17,100

                                           Conversion cost $67,200

                                            Balance               84,300

Transfer to next department

Debit                                                               Credit

Conversion cost 67200                   Direct material 17100

Answer:

11.63%

Explanation:

The company's Days sales in inventory is the return on sales

Return on sales = Net income / Sales

Return on sales = 477 / 4100

Return on sales = 0.11634

Return on sales = 11.63%

Answer:

c. $112,800

Explanation:

The computation of operating income is shown below:-

= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division

= ($218,000 × 135%) - $93,000 - $48,000 - $40,500

= $294,300 - $93,000 - $48,000 - $40,500

= $112,800

Answer:

a. Return on equity is 89.2%

b.Return on net operating assets (RNOA) is 20.0%

c. nonoperating return for the year is 69.2%

d RNOA is 20.025%

Explanation:

$ millions                    Jan. 31, 2016                        Feb. 01, 2015

Operating assets            $40,583                                   $38,473

Nonoperating assets       2,241                                            1 ,748

Total assets                    42,824                                            40,221

Operating liabilities     15,018                                            13,527

Nonoperating liabilities   21,285                                    17,167

Total liabilities              36,303                                    30,694

Total stockholders' equity 6,521                                     9,527

Sales                                88,999  

Net operating profit before tax (NOPBT) 12,024  

Nonoperting expense before tax 778  

Tax expense 4,088  

Net income 7,158

NOPAT = Net operating profit before tax (NOPBT) - Tax expense

= 7936

277822 - 151357

a. Compute return on equity.

ROE = Net income / Average share equity

       = 7,158/ ((6,521 + 9,527 )/ 2)

        = 7158 / 8024

        = 0.892

      = 89.2%

b. Compute return on net operating assets (RNOA).

=NOPAT / Average operating asset

= 7936 / ((40583 + 38473)/2)

= 7936 / 39528

= 0.20

= 20 %

c. Use ROE and RNOA to determine the nonoperating return for the year.

=ROE - RONA

= 89.2% - 20%

= 69.2%

d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA.

NOPM = NOPAT / Sales

           = 7936 / 88999

           = 0.089

           =8.9%

NOAT  = Sales / Average operating asset

            = 88999 / ((40583 + 38473)/2)

            = 88999 / 39528

             = 2.25%

RNOA = NOPM x NOAT

           = 8.9 x 2.25

            = 20.025%

Answer: B. social loafing.

Explanation:

As a college student or indeed just a student, you have probably seen this happen a lot.

This action is known as SOCIAL LOAFING. It is described as someone putting in less effort in a group as opposed to working alone. They are content with letting others do work for them and this has been known to damage the effectiveness of groups.

Lillie's team members who seem uninterested and content to let others do their share of the work are engaging in Social loafing.

Answer:

B. social loafing.

Explanation:

social loafing is the phenomenon of a person exerting less effort to achieve a goal when he or she works in a group than when working alone and is seen as one of the main reasons groups are sometimes less productive than the combined performance of their members working as individuals.

Answer:

Explanation:

Solution:

a) At the end of 2020, facility is 20% full so the 300,000 would be regarded as expenses

Therefore, in the balance sheet, at the end of 2020, 300,000 would be shown as liability.

b) In the financial statements for 2012, 300,000 would be shown as expense and 300,000 would be shown as liability.

Answer:

$725000

Explanation:

The break-even point is the point at which the firms total expenses is equal to its total revenue and it neither makes a profit nor a loss. At any point before this, the firm makes a loss and at any point after this, the firm is making a profit. This is because, it has got to a point where after the unit variable costs are covered from the revenue, there is enough to cover fixed costs as well because the firm’s fixed costs are now being spread over a greater number of units.

The break-even point is calculated as:

Fixed costs / (Selling price per unit - variable cost per unit)

Hence, in this case : $253750 / ($100 - $65) = 7250 units.

In dollars, this would be...

Revenue : 7250 x $100 = $725000

Expenses : $253750 + ($65 x 7250) = $725000

Answer:

The correct answer is $10,014.40.

Explanation:

According to the scenario, computation of the given data are as follows:

Total cost of assembling = $6.56 × 240 = $1,574.40

Total cost of processing customer order = $65.38 × 48 = $3,138.24

Total cost of setting up batches = $82.84 × 64 = $5,301.76

So, we can calculate the total overhead cost by using following formula:

Total Overhead = $1,574.40 + $3,138.24 + $5,301.76

= $10,014.40