(Note: Optimal order quantity is at a price break point) 7. Given the following inventory information, construct an (a) ABC analysis by annual dollar usage, (b) ABC analysis by current inventory value, and (c) an ABC inventory matrix. Is the firm stocking the correct inventories? Item Number Unit Cost Annual Usage Usage$ % of Total Class Phy Inv Phy Inv $ % of Total Class B8867 6 1000 600 0.42 C 8000 48000 33.68 A J1252 5.25 6500 34125 24.06 A 120 690 0.44 C K9667 0.25 4000 1000 0.71 C 1000 250 0.18 C L2425 1 1500 1500 1.06 C 375 375 0.26 C M4554 5.50 2000 11000 7.76 B 500 2750 1.93 C T6334 70 500 35000 24.68 A 800 56000 39.30 A W9856 0.75 800 600 0.42 C 20000 15000 10.53 B X2215 1.5 8000 12000 8.46 B 2000 3000 2.11 C Y3214 32 1000 32000 22.56 A 500 16000 11.23 B Y6339 4 3500 14000 9.87 B 125 500 0.35 C Total Amount dollar usage= $141,825 100 Total physical inventory = 142,505 U

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.