Just-in-Time (JIT) production strategy has advantages such as reduced inventory costs and improved efficiency, but it also presents disadvantages like increased supply chain risks and reduced flexibility. Service-based industries can learn from JIT concepts to reduce waste, improve process flow, and enhance customer responsiveness.
Advantages of JIT:
Reduced inventory costs: JIT minimizes the need for large inventories, resulting in lower storage and carrying costs.
Improved efficiency: JIT eliminates excess inventory and optimizes production processes, leading to cost savings and increased productivity.
Better quality control: Defects are quickly identified and rectified since production is closely aligned with demand, improving customer satisfaction.
Disadvantages of JIT:
Increased supply chain risks: JIT heavily relies on suppliers, making any disruptions in the supply chain impactful to production and customer satisfaction.
Reduced flexibility: JIT's tight synchronization with demand makes it challenging to adapt to unexpected changes or shifts in customer preferences or market conditions.
Learning from JIT in service-based industries:
Reducing waste: Service industries can focus on eliminating unnecessary steps, improving process efficiency, and reducing resource waste.
Improving process flow: Streamlining operations and optimizing service delivery can enhance efficiency and reduce customer waiting times.
Enhancing customer responsiveness: By aligning service provision with customer demand, service industries can provide timely and personalized services, increasing customer satisfaction.
It's important to adapt and modify JIT concepts to suit the unique characteristics and requirements of service-based industries.
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What is something that will not help you get a higher credit limit?
A: Paying off the balance of the credit card each month
B: Asking the banking company for a higher limit on your credit card
C: Maxing out the credit card and only making the minimum payment each month
D: Making more money at your job (More personal income)
Maxing out the credit card and only making the minimum payment each month is something that will not help you get a higher credit limit. A credit limit is the most money you are permitted to spend on a credit card or line of credit by a lender.
If a credit card company grants you a credit limit of $2,500, that is the most you may ever have charged to the card payment . If you charge $1,900 to your card, you will have $600 left over that you can use without paying a fee or being restricted from using the card limit further.
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floor covering inc. maintains inventory records using a perpetual costing system and a fifo cost flow assumption. data for june 2018, is as follows: june 1 balance 90 units at $10 june 10 purchase 110 units at $12 june 15 sale 120 units at $20 june 17 purchase 130 units at $13 june 27 sale 100 units at $20 the journal entry for the sale on june 27 will include a:
The journal entry for the sale on June 27 will include a debit to Cost of Goods Sold for $1,520 and a credit to Inventory for $1,300.
Floor Covering Inc. uses a perpetual costing system and a first-in, first-out (FIFO) cost flow assumption. This means that the cost of the first units purchased are the first to be assigned to goods sold.
On June 27, 100 units were sold at a price of $20 each, resulting in total revenue of $2,000. The cost of goods sold is calculated by multiplying the number of units sold (100) by the cost of the oldest units in inventory (the 90 units purchased on June 1 at $10 per unit and the 10 units purchased on June 10 at $12 per unit).
This gives a cost of goods sold of $1,300.
The journal entry to record the sale on June 27 will include a debit to Cost of Goods Sold for $1,520 (the calculated cost of goods sold plus the cost of the 20 units remaining in inventory) and a credit to Inventory for $1,300 (the cost of the units sold).
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a customer with significant buying power in an industry would: make a tacit price agreement more difficult to achieve. behave as a monopoly. have no effect on price in the industry. result in a cartel being formed.
A customer with significant buying power in an industry would make a tacit price agreement more difficult to achieve.
A person who consistently buys products or services from a certain business is considered a current customer.
Not all goods and services are created equal. As a result, different businesses have different ways of telling a present customer from a prior one. For instance, you are unlikely to buy a new computer as frequently as you eat at your preferred restaurant.
The method used by your favourite restaurant to identify whether you are a current client or not will differ from the method used by a computer store to determine the same thing. Because current clients are the most significant customers for any organisation, extra care is frequently given to them.
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5. What is one benefit of having a career as opposed to a job?
A:advancement
B:money
C :ability to pay bills
D :extra education
Answer:
the answer is A: advancement
Explanation:
I took the quiz and got 100% and the only other one that make sense is money but you get money from a job
An instrument used to enlarge or reduce a map is known as
Answer:
pantograph
Explanation:
you can use a pantograph to do this.
the final step in active listening involves
Answer:
The final step is responding.
the answer is c i just got it right on plato
Answer:
the answer to what lol
Explanation:
16) In addition to owner-supplied capital, what are several other sources of financing for
a small business?
Answer:
Some financing options for a small business:
-you can get bank loan
-angel investor
-government grant (shown below as well)
-business incubator
-Small Business Administration (SBA) - For this financing option, manufacturing companies with 500 employees or fewer, and most non manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.
-equity financing (funding given in exchange for partial ownership and future profits)
-debt financing (can be in the form of installment loans, revolving loans, and cash flow loans)
Explanation:
All of these examples of financing options are good to delve into, if you are interested in getting the funds needed to get your small business off the ground.
Most business messages today aim for a _______ tonea. casualb. conversationalc. abstractd. formale. laid-back
Most business messages today aim for a conversational tone.
In the past, business communication was often formal and rigid. However, in today's fast-paced business environment, communication needs to be efficient, concise, and engaging. As a result, many businesses aim for a conversational tone in their communication, whether it's in emails, memos, or other forms of written communication. A conversational tone is friendly and approachable, and it can help to build trust and rapport with the recipient of the message. However, it's important to strike a balance between being conversational and being professional, and to ensure that the message is still clear and concise.
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Suppose the market risk premium is 6.5% and the risk-free interest rate is 5%. Calculate the cost of capital of investing in a project with a beta of 1.2.
The cost of capital for investing in the project with a beta of 1.2 is 12.8%.
To calculate the cost of capital using the Capital Asset Pricing Model (CAPM), we can use the following formula:
Cost of Capital = Risk-Free Rate + Beta * Market Risk Premium
Given that the risk-free interest rate is 5% and the market risk premium is 6.5%, and the project has a beta of 1.2, we can calculate the cost of capital as follows:
Cost of Capital = 5% + 1.2 * 6.5% = 5% + 7.8% = 12.8%
The cost of capital represents the minimum return required by investors to compensate for the level of risk associated with the investment. In this case, the cost of capital is 12.8%, which means that the project should generate a return of at least 12.8% to be considered financially viable and attractive to investors.
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the __________ shows one or more typical people using the product in a normal setting.
The slice of lifestyle shows one or more typical people using the product in a normal setting.
What is a slice of the lifestyle?
Slice of Life is a kidney explored in film, TV, and erudite workshop centering around normal people and the real drama that arises from everyday life. Slice-of-life flicks and TV shows occasionally lap with the comedy and/ or coming-of-age stripes. For illustration, whereas a typical story would presumably have a scene where roommates can not get on, in the slice-of-life kidney, the focus would be on that whole idea of having roommates and the mundane quality of it all. It can include punchlines and jokes, fixing the story as well in the stage of drama or comedy.
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The stock market represents small businesses. A. True B. False
I would say the answer is Falsr
Powers company reported net sales of 1280000, average accounts receivable, net of 70500 and income of 54425. The accounts receivable turnover ratio is:
If Powers Corporation had net sales of $1,280,000, an average receivables, net of $70,500, a net income of $54,425 the customers receivable turnover proportion account be 18.14.
$1,280,000/$70,500 = 18.14.
Accounting has three types of accounts. Accounting has his three types of accounts:
Real, personal, titular. Real money accounts are then divided into two subcategories.
Intangible physical accounts and tangible physical accounts. Natural, representative, and artificial are his three other subtypes of personal accounts.
Net credit sales are calculated by subtracting credit sales returns and value adjustments from gross sales.
We assume zero credit sales returns or value adjustments as no information has been provided on this. For this:
$1,280,000 equals net credit sales.
A typical accounts receivable calculation is:
Average demand is equal (initial demand + final demand).
Dividing the net loan turnover ratio by the average amount borrowed gives the accounts receivable turnover ratio.
Accounts receivable revenue is $1,280,000 divided by $75,000.
18.14 is the accounts receivable turnover ratio.
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Why is flexibility the most obvious benefit of road transportation? (Select all that apply.)
Transportation companies can employ driving teams of two drivers in the same truck to increase haul times and daily mileage.
Trucks can go anywhere that there are roads.
Truck shipments are impervious to weather conditions like fog, ice, heavy rain, and snow.
Transportation companies can set up systems for having a truck driver approaching his or her maximum driving hours take freight to a drop location where a fresh driver can pick it up and continue on with it.
Answer:
Trucks can go anywhere that there are roads.
Explanation:
Road transport is considered flexible due to the extensive road network. Practically, they are roads almost everywhere including, cities, estates, and villages. As long as there is a road, trucks will get there. Road transport will reach almost any destination as long as there is a road. This is the reason road transport is flexible.
A 3rd degree burn has burnt only part of the epidermis. the epidermis only. the epidermis and dermis. the epidermis and part of the dermis.
A 3rd degree burn has burnt the epidermis and part of the dermis. Option 3 is the correct answer.
A 3rd degree burn is a severe burn that extends through the entire thickness of the skin. In a 3rd degree burn, the epidermis, which is the outermost layer of the skin, and part of the dermis, which is the layer beneath the epidermis, are affected. This type of burn destroys the full thickness of the epidermis and can extend into the deeper layers of the dermis.
The epidermis serves as a protective barrier for the body, preventing the entry of harmful substances and pathogens. It also helps regulate body temperature and plays a role in the production of vitamin D. The dermis provides structural support, contains blood vessels, nerve endings, sweat glands, and hair follicles.
Due to the severity of the injury, 3rd degree burns often require medical intervention and specialized treatment. They can result in extensive tissue damage, loss of sensation, and impaired healing. Treatment may involve surgical interventions, such as skin grafting, to promote healing and minimize the risk of infection. Rehabilitation and long-term care are often necessary to manage the physical and psychological effects of a 3rd degree burn.
Hence, option 3 is the right choice.
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nederlander’s first expansion globally was to purchase three theaters in london, england. this strategy of entering global markets is called _______.
Netherlander’s first expansion globally was to purchase three theaters in London, England. this strategy of entering global markets is called international direct investment.
What is investment?An investment is a valuable item bought with the intention of increasing one's wealth. While stocks, bonds, and real estate are frequently included when discussing investments.
According to the global markets, are the main strategies were the expanded the brands, and they provided the better services. The consumer are the purchase the international products to the increases the international direct investment of the company.
As a result, the international direct investment was the great strategy to the global markets of the different countries.
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A concentration of minerals that could now be legally mined at a profit is called a.
Answer:
Reserve. resource
Explanation:
concentration of natural minerals in or on the crust of the Earth with potential to be extracted for profit.
Li works at a multinational company in New York. His wife has recently been diagnosed with an illness that might keep her bedridden for at least a month. Li will have to stay home to look after her. Which act provides Li with the ability to apply for leave at his company?
Answer:
The Family and Medical Leave Act
Explanation:
The family and medical leave act grants eligible employees of covered companies the right to unpaid and job-protected leave for medical reasons. The law requires qualifying employers to allow eligible employees to take unpaid leave to attend to serious family health matters. This law permits eligible or qualifying employees to take up to 12 weeks leave for reasons such as childbirth and a serious personal or family sickness.
Ten years ago, Oanh bought a house for $200,000 in Chico. She put in a cash down payment of $40,000 and took out a loan for $160,000. She has paid down $60,000 of the loan. Now the house has a market price of $400,000. How much "equity" does Oanh have in her house?
Answer:
The amount of equity Oanh have in her house is $300,000.
Explanation:
Equity can be described as the difference between the amount that is owed on a mortgage and the current worth of the home.
For this question, the amount of equity Oanh have in her house can be calculated as follows:
Loan amount = $160,000
Part of the loan paid = $60,000
Current worth of the house = $400,000
Amount owed = Loan amount - Part of the loan paid = $160,000 - $60,000 = $100,000
Equity = Current worth of the house - Amount owed = $400,000 - $100,000 = $300,000
Therefore, the amount of equity Oanh have in her house is $300,000.
when the title search found that the barn at 1000 oak lane encroached by five feet onto the neighbor's property, the neighbors could have
When the title search found that the barn at 1000 Oak Lane encroached by five feet onto the neighbor's property, the neighbors could have several options to address the situation. Here are some possibilities:
Negotiate a Boundary Agreement: The neighbors could discuss the encroachment issue and come to a mutual agreement regarding the use of the land. They may agree to adjust the property boundaries, either by allowing the encroachment to remain or by formalizing an agreement that specifies the usage rights and responsibilities for the affected area. Grant an Easement: The neighbors could enter into an easement agreement, which grants the property owner of 1000 Oak Lane the right to continue using the encroached area for a specific purpose, such as maintaining the barn. The easement would establish the rights and restrictions for both parties regarding the encroached area. Seek Legal Remedies: If the neighbors are unable to reach an agreement or if the encroachment is causing significant issues, either party may choose to pursue legal action.
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Stuart, a salesperson representing a buyer, is told that the buyer plans to operate a pet grooming business out of any house he buys. Stuart does tell the buyer to verify local zoning ordinances to determine in which parts of town such a business can be conducted. Which duty does stuart violate?
The answer is care. A salesperson must use his skills and knowledge to protect the client's interest in a purchase. In this case, the seller should notify the buyer to verify local zoning regulations that may prohibit the buyer from doing business from home. All salespeople and brokers owe this obligation and disclosure of material facts to consumers. An agent will owe obedience and loyalty to the principal.
Entrepreneur refers to someone who builds or runs their own business. By owning shares in the company, the entrepreneur can enjoy many advantages if all goes well; but they also take a lot of risks—far more than the average employee in the business.
This entrepreneurial risk can take several forms, including financial risk, career risk, emotional risk, or overall business risk. Because there is so much at stake in starting and growing a successful business, there are very specific skills that an entrepreneur usually needs to be successful.
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Imagine that you have no money and you have to leave home and live by yourself. Make a list of the ten most important things that you would take with you and explain why.
Answer:
food clothes water
Explanation:
their the basic needs of an individual
you have just told your audience about a time that you had to overcome an obstacle. you are using an analogy to create effective imagery.
a. true
b. false
False. An analogy is a comparison between two things, typically for the purpose of explanation or clarification.
An analogy is a way to draw a relationship between two concepts or objects by highlighting their similarities. Analogies can be used to help explain complex ideas by comparing them to something more familiar or easier to understand. It can be used to enhance the audience’s understanding or to progress an argument. They can also be used to weaken or remove resistance to ideas by setting up a hypothetical and then relating it to the case at hand.
Telling an audience about a time when you had to overcome an obstacle is not an analogy. It is a personal anecdote or story that can help to illustrate a point or create effective imagery, but it is not an analogy.
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Which of the following is NOT an accusation made against multinational corporations (MNCs) by foreign countries? MNCs cause instability in their currencies in international money and foreign exchange markets.
MNCs contribute to unemployment and avoid taxes.
MNCs exploit local labor with low wages.
All of these options are accusations made by critics of MNCS.
The option that is NOT an accusation made against multinational corporations (MNCs) by foreign countries is: MNCs cause instability in their currencies in international money and foreign exchange markets.
Foreign countries and critics of MNCs often make accusations against these corporations regarding their contribution to unemployment and tax avoidance, as well as the exploitation of local labor with low wages. These accusations stem from concerns about the negative impact of MNCs on local economies, labor markets, and government revenues. Critics argue that MNCs' practices can lead to job losses, reduced tax contributions, and the exploitation of workers in host countries. However, the specific accusation that MNCs cause instability in currencies and foreign exchange markets is not commonly made by foreign countries as a primary concern against MNCs. Instead, currency instability is typically attributed to factors such as global economic conditions, monetary policies, and market forces rather than solely to the actions of MNCs.
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complete the template below to help you plan out your letter
my product it’s a custom can of Pringle’s and I made the flavor of Pringle’s popcorn
I. Paragraph one- Introduction
1. (introduce yourself and explain your experience related to the product) _____________________________________________________________________
2. (explain why you are writing) _____________________________________________________________________
3. (briefly describe your food product and name for your food) _____________________________________________________________________
II. Paragraph two- Describe your Food Product
1. ( describe the flavors, ingredients, texture) _____________________________________________________________________
2. (what does your food look like) _____________________________________________________________________
3. (how is your food unique – what makes it different than other products out there) _____________________________________________________________________
III. Paragraph three- Describe the Packaging
1. (describe the colors in your packaging )____________________________________________________________
2. (describe any images, art, or photos on the package) _____________________________________________________________________
3. (describe the size and materials used in the package) ______________________________________________
IV. Paragraph four- Convince The Company
1. (describe the target population who will buy the food (ex. Moms, diabetics, vegetarians, teens) _____________________________________________________________________
2. (why should they make and market your food?)________________________________________
_______________________
3. (how much will you sell your food for? Sold individually or in larger quantities?) _____________________________________________________________________
V. Paragraph five- Conclusion
1. (Tell what you want the company to do) ______________________________________________
_____________________________________________________________________
2. (Restate what makes your food delicious) ____________________________________________
_______________________
3. (Restate what makes your food unique) ______________________________________________
_______________________
Answer:
Paragraph 1-
Introducing myself-
1.)
Hey, my name is... and I absoultey *love* Pringles, my favorite flavor is...because...(explain here<why you love that flavor and what you like most about it)...*add things about you and pringles to make the paragraph complete*
2.)
I have made such an outstanding flavor of Pringles, it is made of the most loved food by every human on Earth, POPCORN!
I can assure you that you will want to try my product by the time my presentation has come to an end, and boy-oh-boy do I want to as well!
3.)
Pringles are amazing. Though how would you love Popcorn Pringles? Huh, you do? Yup, I bet your pupils dilated and I got your taste buds alert!
4.)
What does my product contain? It consists of the delicious flavor of popcorn and (include your ingredients and texture of food)
5.)
What do my simple yet intricate Pringles look like? They look like *add your answer,
Any questions that have to do with describing your product would be up to you since I don't have the slightest idea of what it looks like...**
Convincing the Company-
You are looking at consumers from various categories starting from Children ranging to Elders. Vegetarians to Carnivores. I guarantee this will also include popcorn dislikers.
Why should they make the market?
Simply because they are tasty and different...all you see now is Pizza flavored Pizza, BBQ flavored brisket, Soy sauce flavored noodles. My product will be an attraction to all stores! Popcorn flavored Pringles, I mean are you kidding me, its genius, and anyone who thinks otherwise is someone who has not tried them.
How much will I sell it for?
*add your answer* Why? The reasons being, I want my product to be available to everyone.
What I want the company to do is...add your answer
The simple thought of a taste of a popcorn flavored on a Pringle makes me want to jump on a pogo stick and complete a world record!!!
The uniqueness is simple noone has made Popcorn flavored pringles and.. *add another statement on why your product is unique*
I DID MOST OF THE QUESTIONS FOR YOUR SLIDES, I HOPE THIS HELPED YOU AND MADE YOUR ASSIGNMENT EASIER FOR YOU :)
I KNOW HOW IT FEELS TO HAVE A PROJECT DUE AND POSTING IT AND FOR NONE TO HELP YOU OUT, THATS WHY I ANSWERED, THIS IS MY TROLL ACCOUNT BUT THANK ME ON MY OTHER ACCOUNT SamHdzBxby.
Your Welcome :)
Explain why socialist societies do not use a circular flow chart.
A customer service person normally deals with which type of person?
people who have already purchased the product
sales leads created by the marketing team
people who are strongly considering buying the product
representatives of competing companies
A customer service person primarily deals with people who have already purchased the product.
The main responsibility of the customer service person is to assist customers with any questions, concerns, or issues they may have related to the product or service. This may include providing information on product features, troubleshooting problems, or addressing complaints.
While customer service representatives may occasionally interact with sales leads or people considering buying the product, their primary focus is on existing customers.
Interaction with representatives of competing companies is generally not part of their role, as this falls under the domain of business development or sales teams.
Overall, customer service personnel are essential in maintaining customer satisfaction and loyalty, contributing to the company's success.
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has enough demand to sell 700 units of each product per month. each product requires the same direct materials in its production. the direct materials cost $3 per pound. the company will at most have 5,700 pounds of the direct materials available every month. what is the maximum contribution margin that json-6783 can earn per month using its 5,700 pounds of direct materials optimally?
In order to maximize the contribution margin, we need to produce the products with the highest contribution margin first. Since both products require the same direct materials in production, we can simply calculate the contribution margin per unit and produce the product with the highest contribution margin per unit.
In order to maximize the contribution margin, we need to produce the products with the highest contribution margin first. Since both products require the same direct materials in production, we can simply calculate the contribution margin per unit and produce the product with the highest contribution margin per unit. Let's start with calculating the contribution margin per unit for each product:
Contribution Margin per unit = Selling Price per unit - Variable Cost per unit
For both products, the variable cost per unit is the same since they require the same direct materials in production, which cost $3 per pound. The variable cost per unit can be calculated as follows:
Variable Cost per unit = Direct Materials cost per unit = Direct Materials per unit x
Direct Materials cost per pound
Let's call the number of pounds of direct materials used per unit "x". Since each unit uses 3 pounds of direct materials, x = 3. Therefore, the variable cost per unit is:Variable Cost per unit = 3 pounds x $3 per pound = $9 per unitNow, let's calculate the contribution margin per unit for each product. For product A, the selling price per unit is $50 and for product B, the selling price per unit is $35. Therefore, the contribution margin per unit for product A is:Contribution Margin per unit (A) = $50 - $9 = $41
For product B, the contribution margin per unit is:Contribution Margin per unit (B) = $35 - $9 = $26
Now that we have calculated the contribution margin per unit for each product, we know that producing product A will result in a higher contribution margin per unit. Therefore, we should produce as many units of product A as possible using the 5,700 pounds of direct materials available.Let's call the number of units of product A produced "x" and the number of units of product B produced "y". We want to maximize the total contribution margin, which is given by:Total Contribution Margin = Contribution Margin per unit (A) x Number of units of product A + Contribution Margin per unit (B) x Number of units of product B = $41x + $26y
However, we are limited by the availability of direct materials. Each unit of product A and product B requires 3 pounds of direct materials, so the total pounds of direct materials used is:
Total pounds of direct materials used = 3x + 3ySince we have at most 5,700 pounds of direct materials available, we have the following constraint:3x + 3y ≤ 5,700We can divide both sides of this inequality by 3 to get:x + y ≤ 1,900
This is a linear programming problem with the objective function of maximizing the total contribution margin and the constraint of x + y ≤ 1,900. The feasible region is a triangle with vertices at (0, 0), (1, 0), and (0, 1,900).The optimal solution is at one of the vertices of the feasible region. We can calculate the total contribution margin at each vertex as follows:Vertex (0, 0): Total Contribution Margin = $41(0) + $26(0) = $0
Vertex (1, 0): Total Contribution Margin = $41(1,700) + $26(0) = $69,700Vertex (0, 1,900): Total Contribution Margin = $41(0) + $26(1,900) = $49,400Therefore, the maximum contribution margin that json-6783 can earn per month using its 5,700 pounds of direct materials optimally is $69,700.
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Suppose the real rate is 3.3 percent and the inflation rate is 4.9 percent. what rate would you expect to see on a treasury bill?
The rate you would expect to see on a treasury bill can be calculated by subtracting the inflation rate from the real rate. In this case, the real rate is 3.3 percent and the inflation rate is 4.9 percent.
To find the rate on a treasury bill, subtract the inflation rate from the real rate:
Treasury bill rate = Real rate - Inflation rate
Treasury bill rate = 3.3% - 4.9%
Treasury bill rate = -1.6%
Based on these values, you would expect to see a negative rate of -1.6% on a treasury bill. This means that the purchasing power of the money invested in the treasury bill would decrease over time, as the inflation rate is higher than the real rate. It's important to note that a negative rate is not common in practice and can vary depending on economic conditions and market factors.
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PROBLEM 1–22 Cost Terminology; Contribution Format Income Statement LO1–2, LO1–4, LO1–6 Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. Required: 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost? 4. What is the total variable selling and administrative cost? 5. What is the total variable cost? 6. What is the total fixed cost? 7. What is the total contribution margin?
Answer and Explanation:
a. The computation of the total manufacturing overhead cost is
= Conversion cost - direct labor cost
= ($15,000 ÷ 0.30) - $15,000
= $50,000 - $15,000
= $35,000
b. The compuattion of the direct material cost is
= Conversion cost - direct labor cost
= ($15,000 ÷ 0.40) - $15,000
= $37,500 - $15,000
= $22,500
c. The total manufacturing cost is
= direct material cost + direct labor cost + manufacturing overhead cost
= $22,500 + $15,000 + $35,000
= $72,500
d. The total variable selling and administrative cost is
= Sales × commission percentage
= $120,000 × 5%
= $6,000
e. The total variable cost is
= direct material cost + direct labor cost + variable selling and administrative cost
= $22,500 + $15,000 + $6,000
= $43,500
f. The fixed cost is
= Manufacturing overhead + fixed selling and admin expenses
= $35,000 + ($18,000 - $6,000)
= $47,000
g. The total contribution margin is
= Sales - variable expenses
= $120,000 - $43,500
= $76,500
We simply applied the above formulas