Answer:
Indifferent selling price =$67 per units
Explanation:
The selling at which Mel rose would be economically be indifferent between accepting and rejecting the special order from Moore is that that equates the relevant cost of making to the revenue from t
Relevant variable cost making
= 22.80 + 18.60 + 14.20 + (75%×12.80) = $65.2
$
Variable cost of special order (= $65.2
× 3,500)= 228,200
Cost of machine <u>6,300</u>
Total relevant cost of special order <u>234,500
</u>
<u>
</u>
The price at which Melrose would be indifferent
= total relevant cost/ number of units
$234,500/3500 units
=$67 per units
Answer:
Date Account Details Debit Credit
Sept. 30, 2020 Accounts Receivable $5,000
Sales $5,000
Date Account Details Debit Credit
Sept. 30, 2020 Cost of Goods Sold $2,000
Inventory $2,000
Even though there was a miscommunication in the sale, Jones did not know that the stone was a diamond before selling it and Smith can easily say he did not know it was either. If Jones had taken the stone and received other opinions on it, he may have gotten more money but because he sold the stone, there is nothing he can take action on Smith for.
