Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for activity of 882 frames, but the actual level of activity was 878 frames. The actual supplies cost for the month was $13,500. The supplies cost in the flexible budget for April would be closest to:

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output

Speedy Pete’s is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:

Assume that this information was used to construct the following formula for monthly delivery cost.

Required:

Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations:

1. Calculate total variable delivery cost for January.
$

2. Calculate total delivery cost for January.
$

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1. Total Variable Delivery Cost = Variable Rate × Number of Deliveries

2. Total Delivery Cost = Fixed Cost + (Variable Rate × Number of Deliveries)

Kurt Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.40 Direct labor $ 3.20 Variable manufacturing overhead $ 1.20 Fixed manufacturing overhead $ 14,400 Sales commissions $ 0.40 Variable administrative expense $ 0.45 Fixed selling and administrative expense $ 3,300 If the selling price is $20.20 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

• $6.20

• $5.35

• $8.55

• $10.60

Royta Ltd, operates in the commercial painting industry. They have reluctantly come to the conclusion that some of their older equipment is reaching the end of its productive life and will need to be replaced sooner or later. They have asked for your assistance in determining their cost of capital in order to make this decision.

Their present capital structure is as follows:
 1 200 000 R2 ordinary shares now trading at R2,20 per share.

 80 000 preference shares trading at R1.80 per share (issued at R2 per share). Interest at 10% p.a.

 A bank loan of R 1 000 000 at 10.5% p.a. (payable in 3 years time)

Additional data:

a. The company’s beta is 1.4. A return on market of 12% is accepted and a risk free rate of 7% is applicable.

b. The current tax rate is 30%

c. The company’s current dividend is 43c per share and they expect their dividends to grow by 7% p.a.

Required:
4.1 Assuming that the company uses the CAPM to calculate its cost of equity. Calculate its weighted average cost of capital.
4.2 A further R800 000 is needed to finance the expansion. Which option should they use (from ordinary shares, preference shares or loan financing)? Provide a reason for your answer.   

Learned Corporation has provided the following information:

Required:

a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?
c. If the selling price is $24.40 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
d. If 6,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 6,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

What is cost-benefit analysis? How would you apply cost-benefit analysis to your decision to go to college? What are the benefits and what are the costs of going to college?

b. What happens to your analysis if the interest rate rises? What happens if the payoff period shrinks? Who is more likely to find college economically worthwhile: you for your 63-year-old professor?

c. How would you apply cost-benefit analysis to environmental policy? What are the costs of pollution? What are the benefits? Who receives the benefits, and who bears the costs? When the benefits in the costs are received in different times, how can you compare them? What happens if you use a lower discount rate or a higher one?

Learned Corporation has provided the following information:

Required:

a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?
c. If the selling price is $23.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?
e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

1- Retail stores have one cost of goods sold. Manufacturing firms have three types of cost of goods sold. Explain the differences among the three manufacturing types of cost of goods sold.

2-Explain the concept of sunk costs and explain how sunk costs sometimes lead to poor decisions by businesses in regard to products that are well into development but are not successful

3-Describe how the inventory sections of the balance sheet vary for retailers/wholesalers vs. manufacturers

4-Describe at least two methods used for pricing decisions.