Table 3-6EnglandSpainLabour hours needed to make one unit:Cheese1RBread28Amount produced in 40 hours:CheeseBread4020Refer to Table 3-5. How could England and Spain benefit?a. by England specializing in both goods and Spain specializing in neither goodb. by England specializing in cheese and Spain specializing in breadc. by England specializing in bread and Spain specializing in cheesed. by England specializing in neither good and Spain specializing in both goods205

According to the table, England has an absolute advantage in bread, and Spain has a comparative…

Answered: Table 3-6 England Spain Labour hours…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 2 Kosova Itd is a new formed firm which intends to penetrate in the international market. The newly formed firm produces car radios, which currently it sells to car manufacturers for £60 each. Next year the business plans to make and sell 20,000 radios. The business's costs are as follows: Manufacturing Variable materials £20 per radio £14 per radio £12 per radio Variable labour Other variable costs Fixed cost £80,000 per year Administration and selling Variable £3 per radio £60,000 per year Fixed Required: (a) Calculate the break-even point for next year, expressed both in quantity of radios and sales value. (b) Calculate the operating leverage for next year, and discuss why operating leverage is useful. value.
Return to question Lost Mine has offered to buy 3,100 of the US umbrellas at a price of $32 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost $13.00 7.00 9.00 2.50 $31.50 $40.00 Regular. sales price Required: 1. Compute the incremental profit (or loss) from accepting the special order. 2. Should Mohave accept the special order? 3. Suppose that the special order had been to purchase 3,600 umbrellas får $28.00 each. Recompute the incremental profit (or loss) from accepting the special order under this scenario. 4. Assume that Mohave is operating at full capacity. Calculate the special-order price per unit at which Mohave would be indifferent between accepting or rejecting the special order. X Answer is complete but not entirely correct. Complete this question by entering your answers in…
Exercise 2-6A (Algo) Fixed versus variable cost behavior LO 2-1 Franklin Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 4,000 and 10,000 trophies per year. The following cost data apply to various activity levels: Required Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. (Round "Cost per unit" answers to 2 decimal places.) Number of Trophies Total costs incurred Fixed Variable Total costs Cost per unit Fixed Variable Total cost per trophy $ 74,000 42,000 $ 116,000 $ 4,000 $ 18.50 10.50 29.00 6,000 8,000 10,000
EX 22
Question 4 ABC Unicycle makes unicycles and has two divisions. Each division is evaluated as a profit center. The Wheel division, located in Nambia, produces unicycle wheels and can choose to sell wheels on either the open market at $30 per wheel, or sell them to the Assembly division. The Assembly division, located in Elbonia, assembles unicycles and can choose to either buy wheels from the Wheel division or purchase wheels on the open market. Cost per unit Direct Labour Variable Materials Variable Overhead Costs Fixed Overhead Costs* Other information Maximum capacity Current production volume Wheel Division $2.00 3.00 4.00 5.00 2,000 1,800 Assembly Division $6.00 7.00 8.00 9.00 3,000 2,600 (* Fixed overhead costs are based on current production volumes) Required: A. What is the range of transfer prices between the Wheel Division and Assembly Division for an additional wheel? B. What is the likely range of transfer prices per wheel between the Wheel Division and Assembly Division for…
Arial B IUA 11 E E E E E 3 1 4 | 5 | 6|7 L 8 9 1 10 11 12 13 l 14 1 15 16 CHOCODOKIA is a famous chocolate factory in Switzerland. Every year, the company must produce 2200 units (with the same amount of production). Sales are evenly distributed throughout the year. The company wants to determine the lot size which can minimize the cost of ordering (setup costs) and costs of storage (carrying costs). Given that the cost of producing each unit is $50, carrying costs are 10% of the average inventory and setup costs are $20 (per production run). Using the Differentiation Method (1st and 2nd Derivative Test). Determine economic lot size for the company and provide an explanation of the results of these calculations. EL
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Problem 5 Ilang Ilang company manufactures Products A and B from a joint process which also yields a by-product. Ilang ilang accounts for the revenue from its by-product sales as a deduction from the cost of goods sold of its main products. Additional information follows: A B C Total Units produced 15,000 9,000 6,000 30,000 Joint Costs ? ? ? 264,000 Sales Value at Split off 290,000 150,000 10,000 450,000 Joint products are allocated using the relative sales value at split off approach What was the joint cost allocated to Product B?
Question 3 (12 marks) Grass & Go Ltd produce two models of petrol lawnmowers, Standard and Deluxe. Overhead was allocated based on direct labour hours. The following information was collected at the end of 2022. Annual sales Selling price Direct material cost per unit Direct labour cost per unit Overhead cost per unit Following an examination of the data above the marketing manager recommended that more emphasis should be placed on selling the Deluxe mower. The manufacturing manager disagreed and argued that there were problems in relation to the costing of the mowers. The management accountant agreed with the manufacturing manager and suggested that an activity-based costing system should be installed. Overhead activity Setups Standard 36,250 units $650 $90 $200 $90 The general manager asked the management accountant to recalculate the product costs using ABC techniques. The management accountant subsequently collected the following information. Cost driver Number of setups Machine…
1 2 3 4 Fixed cost: LO A Selling price: Unit cost: B $ $ $ 1. What is Pete's breakeven point in units? Pete Corporation produces bags of peanuts. Its fixed cost is $17,280. Each bag sells for $2.99 with a unit cost of $1.55. 17,280.00 2.99 1.55 C 5 6 7 8 9 10 11 Note: Use cells A4 to B6 from the given information to complete this question. 12 13 14 Required: Using the information given above, answer the following question: E bags F G H

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