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NISA [10]
2 years ago
5

Practice

Business
1 answer:
Anettt [7]2 years ago
4 0

If the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.

<h3>What is break-even analysis?</h3>

Break-even analysis is an accounting technique to ensure that a company does not incur losses from its transactions.

Using the technique, a corporation ensures that the total costs are at least equal to the total revenue or the contribution margin is sufficient to cover the fixed costs, which are not variable within a relevant range.

The technique is based on the concepts of contribution margin and variable costing.

<h3>Data and Calculations:</h3>

Special order units = 3,000 boxes

Price per box for special order = $30

Variable costs per box = $24

Special shipping costs per box for the special order = $2

Contribution margin per box = $4 ($30 - $24 - $2)

Total Contribution Margin = $12,000 ($4 x 3,000)

Fixed costs = $30,000 ($10 x 3,000)

Normall selling price per box = $70

Thus, if the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.

Learn more about accepting special orders at brainly.com/question/25307534

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Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $1
Grace [21]

Answer:

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

Explanation:

Break even point = \frac{Fixed Cost}{Contribution per unit}

Fixed Cost = $8,100

Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3

1. Break even points in units will be

= \frac{8,100}{3} = 2,700 units.

2. Break-even point in dollar sales

= Break even point in units X Sale price per unit

= 2,700 units X $21 = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales

= \frac{8,100 + 600}{3} = 2,900 units

Final Answer

1. Break even points in units will be =  2,700 units

2. Break-even point in dollar sales = $56,700

3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units

3 0
3 years ago
Does a business neceşsarily have obligations to anyone<br> besides stockholders?
Marina CMI [18]

Answer:

of course. Business have obligations and duties towards many parties. we call these people "stake holders". in other words, they are either interested in the business and activities or are effected by the business activities.

for an example, the community and the environment the business operates in are stakeholders and the firm has responsibility to ensure an environmental friendly production and practices are carried out by the firm.

Government and tax authorities are another example. firm has to make sure that the required disclosures are made and proper taxes are paid timely.

Potential investors are another example, the company has to make sure that they disclose all the relevant and material information that may give signals about the companies future and its direction.

Explanation:

8 0
3 years ago
The BRS Corporation makes collections on sales according to the following schedule:
RideAnS [48]

Answer:

$110,300

Explanation:

June collections will comprise of

25% of June sales

71% of May sales

4% of April sales

<u>25% of June sales </u>

=25/100 x 100,000

=$25,000

<u>71% of may sales</u>

=71/100 x $110,00

=$78,100

<u>4% of April sales</u>

=4/100 x $180,000

=$7,200

Total June collections

=$25,000 + $78,100 +$7,200

=$110,300

5 0
3 years ago
Why do large media companies have so much control
gtnhenbr [62]

Answer: Big Tech companies thrive on consumer data.

Explanation: So you can limit there power by imposing

6 0
2 years ago
If A sells to B, and B obtains title while goods are in transit, the goods were shipped .If C sells to D, and C maintains title
astraxan [27]

Answer:

The answer is a. Free on Board (FOB) shipping point, Free on Board (FOB) destination.

Explanation:

In the case of A to B, the goods were shipped at FOB shipping point because the title passes to B while the goods are in transit. FOB shipping point means that the seller of a goods passes the title to the buyer at the point where the goods are being delivered to the designated carrier of the buyer.

In FOB shipping point, once the goods have transferred to the carrier to convey to the buyer, the buyer obtains title immediately not minding that the goods are yet to arrive at the buyer`s door. In addition, any risk of damage or loss of goods in transit are solely borne by the buyer because title has passed immediately seller transfers the goods to the carrier designated by the buyer.  This is true in A to B case because B obtains title while goods are in transit. So the goods were shipped at FOB shipping point.

For C to D, the goods were shipped at FOB destination because buyer obtains title only when the goods arrive at his/her door. Conversely yo FOB shipping point, the risk of damage and loss of goods in transit is entirely borne by the seller because the title has not passed to the buyer until the goods arrive at the buyer`s door.

4 0
3 years ago
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