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Paraphin [41]
3 years ago
8

Pine Street Inc. makes unfinished bookcases that it sells for $59.37. Production costs are $37.59 variable and $9.54 fixed. Beca

use it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $70.62. Variable finishing costs are expected to be $5.64 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases.
Business
1 answer:
Andreas93 [3]3 years ago
4 0

Answer:

Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.

Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.

Explanation:

Provided, current profit per unit = Selling price - Total cost =  $59.37 - $37.59 - $9.54 = $12.24

This is calculated to know the current profit per unit, without furnishing the bookcase.

In case, the bookcase is furnished then the cost will increase by $5.64 per unit.

That is total cost per unit = $37.59 + $9.54 + $5.64 = $52.77

Revised selling price = $70.62 for each finished unit

Therefore profit pr unit on finished bookcase = $70.62 - $52.77 = $17.85

Since profit per unit is more in Finished bookcase, book cases shall be finished and then sold.

Additional profit per unit on finished book cases in comparison to unfinished book cases = $17.85 - $12.24 = $5.61 per unit.

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My name is Ann [436]

Answer:

A. Prepare a bank reconciliation at July 31.

                                        Crane Video Company

                                             Bank Reconciliation

                                                        July 31

Cash balance per bank statement                             $7,263

Add: Deposits in transit                                                 1300

                                                                                      8,563

Less: Outstanding checks                                              591

Adjusted cash balance per bank                                $7,972

Cash balance per books                                             $7,284

Add: Collection of N/R ($700 plus

accrued interest $36 less collection

fee $20)                                                                          716

                                                                                       8,000

Less: Bank service charge                                               28

Adjusted cash balance per books                               $7,972

B. Journalize the adjusting entries at July 31 on the books of Crane Video Company.

The adjusting entry would be,

Date           Account Title                         Debit        Credit

Jul 31         Cash                                         716

                 Miscellaneous Expense           20

                 Notes Receivable                                         700

                 Interest Revenue                                            36

(to record Collection of N/R ($700 plus accrued interest $36 less collection fee $20)

31              Miscellaneous Expense            28

                 Cash                                                                28

(to record bank service charge)

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Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in value
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Answer:

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Which of the following business opportunities allows a business to purchase and sell a company's products, but not the right to
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Answer:

Dealers/distributors allows a business to purchase and sell a company's products, but not the right to use that company's trade name as its own

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A sharp downturn in the U.S. housing market reduced the income of many who worked in the home construction industry. A Wall Stre
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Answer:

Answer is explained in the explanation section.

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And if their families do not have as much as it use to be then they will not be able to buy near as much as they used to.

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

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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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