Question 76
Information about a company's only two products is as follows:
The revenue from the products must be in the constant mix of 2U:3V. Budgeted monthly sales revenue is $110,000.
Fixed costs are $23,095 each month.
To the nearest $10, what is the budgeted monthly margin of safety in terms of sales revenue?
Question 77
Company LGF seeks to maximize profits and has a 'risk seeker' attitude when making decisions. The company has to choose between mutually exclusive projects. A range of possible profit outcomes has been estimated for each project along with their associated probabilities.
Company LGF would choose the project with the:
Question 78
A company makes a product using two materials, X and Y.
The standard materials required for one unit of the product are:
What is the direct material mix variance for Material X, using the individual valuation basis?
Question 79
PL currently earns an annual contribution of $2,880,000 from the sale of 90,000 units of product B. Fixed costs are $800,000 per annum.
The management of PL is considering reducing the selling price per unit to $48. The estimated levels of demand at the revised selling price and the probabilities of them occurring are as follows:
Calculate the probability that the profit will increase from its current level if the selling price is reduced to $48.
Question 80
A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier.
The following costs relate to the manufacture of one machine:
What is the finished goods inventory valuation for one machine using throughput costing?