1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
____ [38]
3 years ago
9

Varto Company has 12,600 units of its sole product in inventory that it produced last year at a cost of $31 each. This year’s mo

del is superior to last year’s, and the 12,600 units cannot be sold at last year’s regular selling price of $49 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $13 each or (2) they can be processed further at a cost of $272,300 and then sold for $34 each. Should Varto sell the products as is or process further and then sell them?
Business
1 answer:
grandymaker [24]3 years ago
7 0

Answer:

It is more profitable to sell the units as-is.

Explanation:

Giving the following information:

Number of units= 12,600

Varto has two alternatives for these items:

(1) they can be sold to a wholesaler for $13 each

(2) they can be processed further for $272,300 and then sold for $34 each.

The first cost of $31 is a sunk cost, it will remain no matter which option is chosen. We will not take it into account for the decision making process.

Option 1:

Effect on income= 12,600*13= $163,800

Option 2:

Effect on income= 12,600*34 - 272,300= $156,100

It is more profitable to sell the units as-is.

You might be interested in
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the f
adoni [48]

Answer:

Sh. 300,001.60

Explanation:

Note: <em>Missing word has been attached</em>

Particulars                                                     Amount

Annual payments                                          86,038

x PV Annuity due 8%, 10 periods                 3.48685

Amount recorded for the leased asset      300,001.60

8 0
2 years ago
The spherical bubbles near the surface of a glass of water are 2.5 mm in diameter at sea level where the atmosphere exerts a pre
larisa86 [58]

Answer:

145

Explanation:

6 0
3 years ago
The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 N
Degger [83]

Answer:

1.56

Explanation:

Data provided in the question:

Net fixed assets (beginning of year) = $1,860,000

Net fixed assets (end of year) = $2,280,000

Net operating revenues for the year = $3,230,000

Net income for the year = $1,600,000

Now,

company's fixed asset turnover ratio for the year

= Net operating revenues ÷ Average total assets

Also,

Average total assets

= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2

= [ $1,860,000 + $2,280,000 ] ÷ 2

= $2,070,000

Therefore,

Company's fixed asset turnover ratio for the year

= $3,230,000 ÷ $2,070,000

= 1.56

3 0
3 years ago
Why do ralph piggy and samneric lie about their part in simon death?
8_murik_8 [283]
In The Lord Of The Flies, Jack basically convinces himself that he killed the beast and not simon, and in an example of mob mentality Piggy, Ralph, Sam and Eric all just go along with it even though they feel guilty and seem to acknowledge that they did know it was simon they were killing. 
8 0
3 years ago
Despite your numerous emails and voicemail messages, a normally dependable vendor has not responded to your important question.
Bogdan [553]

Answer:

A) Consider sending a printed message.

Explanation:

According to the scenario, the most sensible step to get an important response from a supplier after the supplier has not responded would be to send a printed message.

This option would be ideal among the other alternatives above, as it demonstrates that you understand that the supplier may not have seen or been aware of your question, even if numerous e-mails have already been sent, and still awaits an answer , in accordance with professional and ethical communication standards.

8 0
2 years ago
Other questions:
  • Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an ini
    11·1 answer
  • Tayler Company reported the following data.
    10·1 answer
  • Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data
    9·1 answer
  • Jake is a highly qualified individual. He recently had an interview for the position of a bank manager. The interview went well.
    9·1 answer
  • ECONOMICS!! PLEASE HELP ME!!
    7·1 answer
  • The nine-cell attractiveness-strength matrix provides clear, strong logic for Group of answer choices using both industry attrac
    6·1 answer
  • Which theme can be found in both "If" and The Jungle Book by Rudyard Kipling?
    9·2 answers
  • Sheffield Corp. developed the following data for the current year: Beginning work in process inventory $ 216000 Direct materials
    14·1 answer
  • Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equi
    14·1 answer
  • What is a consequence of not having health insurance?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!