Answer:
A.$42,700 increase
B. Yes
Explanation:
A.
Selling price unit $30
Variable cost unit ( 21)
Logo ( 2)
Contribution margin unit $ 7 x 6,100 units = $42,700 increase
Therefore the increase in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity is $42,700
(b) Should Maize Company accept the special order?
YES. Maize company should accept the special order.
Answer:
Production= 200,000
Explanation:
Giving the following information:
Beginning Inventory Ending Inventory
Finished goods (units) 24,000 34,000
The company plans to sell 190,000 units during the year.
<u>To calculate the production required, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 190,000 + 34,000 - 24,000
Production= 200,000
Answer:
Over this 10-year period, the benefit to cost ratio is:
= 1.33.
Explanation:
a) Data and Calculations:
Cost of additional anti-pollution equipment = $2 million
Estimated useful life of the equipment = 10 years
Additional annual labor cost for equipment usage = $100,000
This gives a total labor cost of $1 million over the 10-year period.
Therefore, the total cost = $3 million
Savings (benefits) from lowering the air pollutants in the region = $4 million in medical expenses.
The benefit-to-cost ratio (BCR) = $4/$3 = 1.33
b) The Benefit-to-cost ratio (BCR) is a cost–benefit analysis that summarizes the value-for-money of a project by expressing the relationship between the project's benefits and costs in monetary terms. The BCR shows the future profitability of investment alternatives or options. It is normally expressed in terms of net present value.
Answer:
The answer here is false.
Explanation:
The answer is false.
This type of market is called perfect competition.
Products are identical. The buyers can buy from any seller without the fear of having different quality or quantity.
There are large number of buyers and sellers. The bargaining power of buyers is very high because sellers selling the same product are much.
These above-mentioned points made sellers to be powerless because any seller that increases its price will lose customers because buyers can get the same product else where at a lower price. Seller are price-takers, they can't influence the prevailing market price. It is the market that determines the price.
Answer:1. Poole journal $
Date
April 10
Cash account Dr 50,925
Cash sales Cr 48,500
Sales tax. Cr. 2425
Narration. Cash sales inclusive of sales tax.
Waterman journal $
Date
April 15
Cash account Dr 26750
Cash sales Cr. 25,000
Sales tax. Cr. 1750
Narration. Cash sales inclusive of sales tax
Explanation:
Firms are authorized by the government to collect sales tax on their behalf at the time of sales and such amount when collected are treated as liability by the firm to be remitted to the goverments.
At the point of sale the sales tax is showing as percentage to be charged on sales separately e.g 5% on sales figures.
If the tax percentage is not separated at the time of sales and the sales is made inclusive of sales tax then the sales tax like in the above scenario will be 7/107 * $26,750 which gives $1750
