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- Good day. can you please assist on the following question below Consider the information provided below as well as the financial statements and answer the questions that follow. Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R3 100 100 Cost of sales R390 000 R475 000 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020 b. Compare the results of the 2019 and 2020 break-even points and explainwhy there might be a differenceConsider the information provided below as well as the financial statements and answer the questions that follow.Pearson & Litt is a manufacturing company in the Eastern Cape. Their factory manufactures glass wine bottles for the Blue Valley Beer Co.2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 000 b. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendation (3)A company with a plant in Basel can be served by bothrail and truck at a cost of €250 and €1500 per load, respectively. Thetransit time for the train is 15 days while for the truck is 5 days. (a) Ifthe daily cost of transit inventory is €100, which transportation modeis more economical attractive? (b) What will be the costs involved, ifthe daily inventory carrying cost is €50? (c) Identify related principlesneed to consider when designing a transportation system.
- Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing Calculate Sk8’s annual relevant carrying costs for the EOQWesley Utility Company uses 2,500 units per year which it stores at $0.50 per unit per annum. The cost to place an order is $100. a) Calculate: i. The economic order quantity (EOQ) b) If the company decides to make the items on its own machine with a potential capacity of 5,000 units per year, calculate: i. The economic order quantity (EOQ) ii. The annual ordering cost iii. The annual carrying costErico Inc, has the following details: Average lead time - 10 days Maximum lead time - 15 days Minimum lead time - 6 days Emergency purchases - 4 days Average consumption - 15 units per day Maximum consumption - 20 units per day. Required: Danger Level
- Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Calculate Sk8’s annual relevant ordering costs for the EOQ .BBMLOVESLENI Company operates a fleet of delivery trucks in Luzon. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is P11.40 per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to P13.40 per kilometer. Assuming that in a given year, a truck were driven 80,000 kilometers, what total cost would you expect to be incurred? * A. P1,012,000 B. P1,407,000 C. P1,225,143 D. P1,072,000
- Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 bottles at a total cost of $808,500. Kraff Corporation has offered to supply as many bottles as Relling wants at a cost of $3.75 per bottle. Relling anticipates needing 225,000 bottles each year for the next few years. Q. What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles?Blossom Company sells 320 units of its products for $20 each to Wildhorse inc. for cash. Blossom allows Wildhorse to return any unused product within 30 days and receive a full refund. The cost of each product is $11. To determine the transaction price, Blossom decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability weighted amount. Using the probability-weighted amount. Blossom estimates that (1) 7 products will be returned, and (2) the returned products are expected to be resold at a profit. Prepare the journal entries for Blossom at the time of the sale to Wildhorse including any expected returns. The company follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash (To record…UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. The bulbs will be used evenly throughout the year. The setup cost every time a production run is made isP800 and the cost to carry bulbs in inventory for the year is P4. UFC's objective is to produce the bulbs at the lowest cost possible. 19. Assuming that each production run will be for the same number of bulbs, how many production runs should UFC make? а. 10 b. 14 с. 16. d. 19