Michard Corporation Makes One Product and It Provided the Following

question 76

Multiple Choice

Michard Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a. The budgeted selling price per unit is $125. Budgeted unit sales for April, May, June, and July are 7,600, 10,500, 13,800, and 12,900 units, respectively. All sales are on credit.
B. Regarding credit sales, 20% are collected in the month of the sale and 80% in the following month.
C.The ending finished goods inventory equals 20% of the following month's sales.
D. The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.00 per pound.
E. Regarding raw materials purchases, 30% are paid for in the month of purchase and 70% in the following month.
F. The direct labor wage rate is $25.00 per hour. Each unit of finished goods requires 3.0 direct labor-hours.
G. The variable selling and administrative expense per unit sold is $3.40. The fixed selling and administrative expense per month is $80,000.
The estimated direct labor cost for May is closest to:

• A) $558,000
• B) $33,480
• C) $837,000
• D) $279,000

Identify and explain the measures of risk including variance, beta, and alpha.

Learn about the concept of arbitrage and its role in financial markets.

Analyze the significance of the market portfolio and its characteristics according to the CAPM.

Appreciate the impact of liquidity and other factors not fully explained by CAPM on security pricing.

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Definitions:

Administrative Supplies

Items and materials used in the day-to-day administration and functioning of an office or organization.

Disposable Sheaths

Protective covers, often made of plastic or rubber, designed to be used once and then discarded to prevent contamination and ensure hygiene.

Insurance Forms

Documents required for processing insurance claims or applying for insurance policies.

Bandages

Materials used to support, protect, or compress injuries or wounds to control bleeding, absorb fluids, or hold dressings in place.